Postby bd6759 » Thu Apr 21, 2016 5:14 pm
Taxo
Benefits in ITEPA refer to benefits from an employment: a car, medical insurance, free gyms and a host of other things. s403, and all parts other than part 10, have got nothing whatsoever to do with social security payments. A payment or a benefit that might otherwise escape taxation as income from an employment, such as an ex-gratia or a redundancy payment, is caught by s401. This is a catch all section, but it exempts the first £30K.
The benefits that you mean are social security payments. They are covered in Part 10.
SSP is paid by an employer, therefore the payment, because it is taxable, goes through the payroll. If any tax is due, it is deducted at that time.
JSA is well below the tax threshold so PAYE is not needed. When a JSA claimant finds work, they receive a P45 showing the amount of JSA received added to the pay that was shown on the P45 the claimant handed in when they started claiming JSA. The new employer then works out the correct tax using these figures. It is how the PAYE system works.
But three pages in, I really have not got a clue what your actual question was. And I don't think you understand anything you have been told.