Winter Fuel Payment if one member opts out.

sheramber

Baldytyke88 said:

sheramber said:

But there was an outcry when it was restricted to the poorest pensioners. It was only paid to those in receipt of pension credit and other means tested benefits. 

Originally it was restricted to those on the state pension only, which is not always the poorest because they would most likely also get pension credit.

No, both my husband and I received it , until the changes last year, and we both had state pension and occupational pension. 

Only requirement was date of birth . 

Last year it was restricted to those in receipt of pension credit and certain means tested benefits  to save money.
  

The amount of criticism received  resulted in a U-turn but introducing an earnings restriction. 

35har1old

Paulrn said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

That’s wrong one of you can opt out, as have I and the other will get the standard amount.

There is a deadline for opting out

35har1old

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

JGB1955

kaMelo said:

In essence a pensioner household could have an annual income approaching £70,000 and still qualify. I'm not sure that would fit most people's definition of "the poorest pensioners."

Way over £70K if they also receive ISA income and/or Premium Bond winnings.

Silvertabby

Mr S is going to opt out.  I will be eligible for perhaps a couple of years or so (assuming the £35K limit stays) but, until then, the way I read it is that I will get £100 winter fuel allowance.

Yes, we can do without it.  Yes, it will go the way of winter fuel allowances in the past - into the food bank collection bank box in our M&S foodhall.  Yes, there should be a better way of directing this payment towards those who truly need it.  But means testing costs money, and I wouldn't be surprised if it was actually cheaper to just pay everyone as per the old system.

Dazed_and_C0nfused

35har1old said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

They each need to be careful to avoid getting an extra penny in (taxable) income then!  It would be an astronomical tax rate if they did 😳

Silvertabby

Dazed_and_C0nfused said:

35har1old said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

They each need to be careful to avoid getting an extra penny in (taxable) income then!  It would be an astronomical tax rate if they did 😳

Not really - their tax codes would just be reduced to recover the £100 over the tax year.  Unless they opted out before the payments were made. 

Dazed_and_C0nfused

Silvertabby said:

Dazed_and_C0nfused said:

35har1old said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

They each need to be careful to avoid getting an extra penny in (taxable) income then!  It would be an astronomical tax rate if they did 😳

Not really - their tax codes would just be reduced to recover the £100 over the tax year.  Unless they opted out before the payments were made. 

True.

What I was trying to get at was lots of people aren't keen on paying 40% tax.

But a £100 tax liability due to 1p of extra income is eye watering.  My maths might be out here but isn't it 10,000% 😳

Silvertabby

Dazed_and_C0nfused said:

Silvertabby said:

Dazed_and_C0nfused said:

35har1old said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

They each need to be careful to avoid getting an extra penny in (taxable) income then!  It would be an astronomical tax rate if they did 😳

Not really - their tax codes would just be reduced to recover the £100 over the tax year.  Unless they opted out before the payments were made. 

True.

What I was trying to get at was lots of people aren't keen on paying 40% tax.

But a £100 tax liability due to 1p of extra income is eye watering.  My maths might be out here but isn't it 10,000% 😳

Yes, I see what you mean.  An income of £34,999.99 and you get to keep your £100/£200/£300 winter fuel allowance.  A penny more, and the whole of the WFA is taxed at 100%.  

Dazed_and_C0nfused

Silvertabby said:

Dazed_and_C0nfused said:

Silvertabby said:

Dazed_and_C0nfused said:

35har1old said:

kaMelo said:

As I understand it too, it is household income rather than individuals. As such there is no "opting out' available.

If you're a couple the payment is split between you and if you're over £35,000 in household income the WFP will be recovered by adjusting your tax codes.

Both have £35000 
Depending on age starting 
at £100 each

They each need to be careful to avoid getting an extra penny in (taxable) income then!  It would be an astronomical tax rate if they did 😳

Not really - their tax codes would just be reduced to recover the £100 over the tax year.  Unless they opted out before the payments were made. 

True.

What I was trying to get at was lots of people aren't keen on paying 40% tax.

But a £100 tax liability due to 1p of extra income is eye watering.  My maths might be out here but isn't it 10,000% 😳

Yes, I see what you mean.  An income of £34,999.99 and you get to keep your £100/£200/£300 winter fuel allowance.  A penny more, and the whole of the WFA is taxed at 100%.  

Basically yes.  Although looking at gov.uk I think £35,000.00 would be ok, it's £35,000.01 which would be a sicknener!

https://www.gov.uk/winter-fuel-payment