Working for Work : Chapter 1 : Social Welfare Payments

Tax and Social Welfare

Many Social Welfare payments are now treated as taxable income. This means that your Social Welfare payment will 'use up' your available tax credits.

Any additional income that you or your spouse may have, on top of your Social Welfare payment, will be subject to tax. Jobseeker's Allowance, Maternity Benefit, Child Benefit and Health Board payments are not treated as taxable income.

 

The main social welfare payments that are taxable are: -

Jobseeker's Benefit - One Parent Family Payment - Illness Benefit - Invalidity Pension - Blind Pension - Deserted Wife's Benefit - State Pension Contributory/ Non-Contributory - State Pension (Transition) - Guardian's Payment Contributory/ Non-Contributory - Carer's Allowance - Widow / Widowers Contributory/ Non-Contributory - Injury Benefit

 

i If you are claiming a taxable social welfare payment you must notify the tax office of any additional income either you or your partner/spouse have from earnings or other sources. The tax office will 'code-in' details of your social welfare payment and apply it to the tax charged on your other income. Any taxes due are not deducted from the social welfare payment; it is taken from your other income.

 

See Chapter 5 for information on Income Tax and Social Welfare.

Last Updated: 31/08/2011 ^ back to top