winter fuel payment

mumps

p00hsticks wrote: »

Are you sure ? The probability is that it's taxable income (i.e. to be included in the calculations when working out what tax he needs to pay) but that he doesn't actually have tax deducted because his total income is not greater than his annual tax allowance (of around £10,000)

I am sure, he does pay some tax as he has SRP and income from other investments but this isn't taxable and is shown as such on his "payslips" for his pension. The tax he pays is minimal as his other income isn't alot more than £10k.

mumps

zygurat789 wrote: »

Yes, pensions are taxable. The reason they may appear not to be is because all income not taxed at source is totalled up (except for things like AA and WFP and all the other items here:-http://www.hmrc.gov.uk/manuals/eimanual/eim76100.htm). and set against your personal allowance.

We each get the personal allowance of £10,660. ( this is because yiou were born before 6 April 1938, those born between that date and 5 Apri 1948 only get £10,500 and those born after 5 April 1948 get £10,000. These figure are usually increased each year in the Budget, the guess for next year is £10,500.)
Anything taxable over and above that is taxed. It does mean that state pension etc is paid in full but tax is deducted from any other payments e.g. annuities. State pension, SRP, etc does form part of the total but tax only comes off the annuities. Confusing, or what?

This happens for all forms of income that is not taxed at source, not only SRP it is part of the way the PAYE system works. Reducing your tax free pay allowance by your non-taxed income, seems straightforward to me.

Thanks for the advice but I run a payroll for a company, have done payroll for over 40 years and it is indeed very straightforward and he doesn't pay tax on his pension.

Errata

A War Disablement pension is tax free.

zygurat789

mumps wrote: »

Thanks for the advice but I run a payroll for a company, have done payroll for over 40 years and it is indeed very straightforward and he doesn't pay tax on his pension.

Not my advice, I was just pointing to HMRC information. If this is incomplete I suggest you take it up with them and good luck to you with that.

Errata

zygurat789 wrote: »

Not my advice, I was just pointing to HMRC information. If this is incomplete I suggest you take it up with them and good luck to you with that.

The HMRC tax situation for War Disablement Pensions is very clearly explained on the veterans-uk website. Veterans UK is part of the Ministry of Defence and administers the pensions.
Most, if not all, local authorites ignore the pension for those who need to claim HB and CTB.

zygurat789

Errata wrote: »

The HMRC tax situation for War Disablement Pensions is very clearly explained on the veterans-uk website. Veterans UK is part of the Ministry of Defence and administers the pensions.
Most, if not all, local authorites ignore the pension for those who need to claim HB and CTB.

True, but as has been pointed out it is not included in EIM76100 Social security benefits: list of non-taxable social security benefits.

Errata

Probably because a War Disablement Pension isn't a social security benefit - it's a pension.

margaretclare

We also still get the married people's tax allowance which we're allowed to split between us to set against our individual pensions income. It's true, every little does help.

MABLE

penrhyn wrote: »

Mine came this week, put it towards my new iPad.

Cue outrage.:

This certainly does not help people who need the money to help pay for their winter fuel and saying it is for anything but will only fuel the debate for getting it withdrawn. :mad:

zygurat789

Errata wrote: »

Probably because a War Disablement Pension isn't a social security benefit - it's a pension.

Pensions are a social security benefit. Perhaps you should read EIM76100