Widowed Parents Allowance and Tax

pmd123

Hi all
I lost my wife over Xmas, and have been awarded WPA, I received the letter from the DWP stating I was entitled to £88 per week, and I presumed that was the gross figure and I would then pay tax on that. I received my first payment over the weekend which was for £177, which was higher than what I was expecting.

I'm hoping someone can advise me, whether the figure of £88 is the net weekly figure after tax has been applied? Or if it is the gross figure, and I would need to do a self assessment in order to pay the tax on this?

Sorry if I'm being dumb, but I can't find the answer to this on the .gov.uk website.

Cheers
Paul

anmarj

DWP can't take tax off, so you would need to contact HMRC to see what they want you to do

mysterywoman10

Hi Paul

Really sorry about to hear about your wife.

It is a taxable benefit. If you are working I don't know for certain but I would imagine they would amend your tax code accordingly.

There isn't a very good link in for these things with the HMRC for example with carers allowance if you earn on top they adjust the tax code accordingly if you are on PAYE. But you need to phone them to sort it out as it won't happen automatically.

Not sure about the amount you should be getting its not a benefit I know much about. I could be they have paid you from a specific date and it's more than one week? Again phone and check with the DWP. You need to get the figures right so you can tell the HMRC the amount you will be getting so they adjust the tax code appropriately.

All the best.

Horseunderwater

That amount equates to 2 weeks worth of the WPA. Just ring up HMRC and ask them to adjust your tax code to take into account the WPA from the date they said they will pay this to you. There will be a small adjustment for this year to sort out and next year will be included as a carry on while you are entitled to the payment.

pmd123

Thanks all,
Yes, the £177 was for 2 weeks, but in my naivety I was expecting it to be taxed at source, not really dealt with benefits before.

Makes sense that it would be done through a tax code adjustment, will speak with HMRC now.

Thanks again
Paul

mysterywoman10

All the best for the future Paul.

Its a real weakness in the system the lack of tie in between HMRC and DWP. Because a lot of people don't realise they have to actively ring HMRC to get it sorted out with certain benefits.

They think especially with today's technology it all happens automatically, which is understandable. Unfortunately Central government's systems are still as lacking as they ever were in terms of business organisation.

Shunter64

Another word of warning if it's WPA, is to make sure you tell both the Bereavement Benefit office and HMRC if your Child Benefit ceases or the amount paid changes. Many people are caught out because they rely on there being a DWP/HMRC interface.

Sorry for your loss.

pmd123

Thanks for the advice, my little boy is only 4 so it will be a while before child benefit stops, but will remember to inform both of any changes.

HMRC seem to have sorted things from their end, just waiting now for a new tax code to be issued to take the WPA into account.

Shunter64

pmd123 wrote: »

Thanks for the advice, my little boy is only 4 so it will be a while before child benefit stops, but will remember to inform both of any changes.

HMRC seem to have sorted things from their end, just waiting now for a new tax code to be issued to take the WPA into account.

Sorry just read what I wrote. I meant to say that you need to tell both when your child leaves full time education and tell the Bereavement Benefit office if your child benefit stops. As you say though it will be some time before you are in that position and in any case you should have been sent a leaflet about changes you need to report when your first payment was issued and you will receive one every year before the benefit goes up in April. Also if you need to know how much you have received by way of WPA for tax purposes, they can send you a statement. I think it's called a BR735.

stormylady_2

Hi, can anyone enlighten me, I care for my grandson. I claimed child benefit for him up to last August. At which point my Widowed Parents Benefit also ceased.
He is now 18, and after 18 months of being out of work eventually claiming JSA, he has now returned to full time education at college. I have just put in a claim for child tax credit, and child benefit. Does anyone know if I will again be able to claim Widowed Parents Benefit?