Winter Fuel Payment and taxation

Dazed_and_C0nfused

flaneurs_lobster said:

lr1277 said:

I am hoping somebody can advise on the following.
i help my mum submit her tax return. For the year 25/26 she will be very close to or above the £35k threshold.
I read overpayments can be returned through a change in the tax code. Is it also possible to return the money through a self-assessment tax return?
If so where on the SA form do I enter the figure for this allowance?
Or should we just let it play out through the tax code?

Would it not be simpler to just opt-out?

I think the problem there is if it turns out her income was £35,000 or less then she cannot retrospectively claim the WFP from DWP.

lr1277

I think you can opt out by 15th September. But you can opt back in by 31/03/26. 

By March next year we will have a good idea about mum’s income for 25/26 so can then know whether to claim the benefit. Perhaps that is the way forward.

Dazed_and_C0nfused

lr1277 said:

I think you can opt out by 15th September. But you can opt back in by 31/03/26. 

By March next year we will have a good idea about mum’s income for 25/26 so can then know whether to claim the benefit. Perhaps that is the way forward.

Interesting, hadn't realised you could opt back in that late in the day!

lr1277

Dazed_and_C0nfused said:

lr1277 said:

I think you can opt out by 15th September. But you can opt back in by 31/03/26. 

By March next year we will have a good idea about mum’s income for 25/26 so can then know whether to claim the benefit. Perhaps that is the way forward.

Interesting, hadn't realised you could opt back in that late in the day!

Mentioned on this page:

https://www.gov.uk/winter-fuel-payment/report-change-circumstances

sheramber

lr1277 said:

I am hoping somebody can advise on the following.
i help my mum submit her tax return. For the year 25/26 she will be very close to or above the £35k threshold.
I read overpayments can be returned through a change in the tax code. Is it also possible to return the money through a self-assessment tax return?
If so where on the SA form do I enter the figure for this allowance?
Or should we just let it play out through the tax code?

There will be a box to declare it when the 25/26 return is processed and available from 5 April 26. 

lr1277

What I don't know is say you opt back in on 31/03/26, then would the payment be made in the 25/26 tax year or the 26/27 tax year?

(No answer required).

Puff1989

I'm retired and my taxable income is just over the 35,000 pound claw-back limit.

I'm going start a SIPP. Would the contributions I make to this SIPP be deducted from my "taxable income"?

I've seen conflicting advice on the net about this. Can anyone point me to a Government source that would settle this question?

SnowMan

https://forums.moneysavingexpert.com/discussion/comment/82146255#Comment_82146255

No pension contributions would not be deducted

https://www.litrg.org.uk/tax-nic/income-tax/winter-fuel-payment-charge

Your adjusted net income is not relevant to your liability to the winter fuel payment charge. You cannot deduct any pension contributions or gift aid donations when working out your income for the purposes of this charge.

And gov.uk confirms it is before any deductions

https://www.gov.uk/winter-fuel-payment/if-your-income-is-over-35000

You can check if your income is over the threshold. You’ll need to provide the total amount of income you expect to receive in the tax year before any deductions.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82155234#Comment_82155234

Have you posted in the wrong thread?

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82155250#Comment_82155250

Probably answering @Puff1989's post a few posts up.