Should a P60U for JA include an accrued amount?

P60U for Jobseeker's Allowance includes benefit accrued but not paid.

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Two payments were received in 2020/21; £56.40 on 19 March (for the 9 days to 16 March) and £87.72 on 2 April (for the 14 days to 30 March), totalling £144.12. However, the P60U shows £181.71. The difference of £37.59 is the accrued benefit for the 6 days from 31 March to 5 April.
Is this the usual practice? I would have expected the whole of the payment received on 16 April to be included in 2021/22 income.
 

 

Replies (8)

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By Paul Crowley
25th May 2021 18:06

Is there any argument worth pursuing?
The p60U has been made available to HMRC. Why dispute it?

Was JA being paid weekly? or periodically in arears?

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Replying to Paul Crowley:
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By Rob_B
25th May 2021 18:41

Paul Crowley wrote:

Is there any argument worth pursuing?
The p60U has been made available to HMRC. Why dispute it?

Was JA being paid weekly? or periodically in arears?

Every two weeks in arrears.
The amount is small in this instance, but I was more interested in the principle.

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By Wanderer
25th May 2021 18:23

HMRC wrote:

Arising basis
The normal rule is that social security benefits are chargeable for the year in which they arise. This means that tax is chargeable on the amount of social security benefit payable for the year where this is different from the amount received in the year.

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Replying to Wanderer:
RLI
By lionofludesch
25th May 2021 18:28

Wanderer wrote:

HMRC wrote:

Arising basis
The normal rule is that social security benefits are chargeable for the year in which they arise. This means that tax is chargeable on the amount of social security benefit payable for the year where this is different from the amount received in the year.

So the Government is different to everyone else then ?

Not for the first time.

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Replying to lionofludesch:
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By Hugo Fair
25th May 2021 18:47

But at least they're different (to everyone else) consistently ... I think.
They certainly take the same approach with State Pension, which is quoted as a weekly rate and paid 4-weekly (thanks!) ... but any 'allocations' (such as when the underlying day rate is increased) are calculated as if entitlement is per day AND the amount paid in the 4-weeks straddling old/new tax year is apportioned to the two distinct tax years (even though the combined amount hits your account as a single transaction)!
For those of us who like to be accurate, it's one of my least favourite cross-checks every year.

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Replying to Hugo Fair:
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By Paul Crowley
25th May 2021 19:51

Pension
I now just accept the reported figure on agent portal or coding
Even those two official figures can be up to £10 different

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Replying to Paul Crowley:
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By Hugo Fair
25th May 2021 21:19

Yeah ... know what you mean.
Used to have a spreadsheet in which I could enter 'old' weekly rate, 'new' weekly rate, and start date of 4-week payment ... which gave amounts for 'old' and 'new' tax years (but I'd often have to over-ride the correct calc to agree with HMRC)!
Now I just take their apportioned figures (e.g. via API in SA) ... along with a large pinch of salt.

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Replying to Wanderer:
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By Rob_B
25th May 2021 18:43

Wanderer wrote:

HMRC wrote:

Arising basis
The normal rule is that social security benefits are chargeable for the year in which they arise. This means that tax is chargeable on the amount of social security benefit payable for the year where this is different from the amount received in the year.

Thank you. That explains it.

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