Winter Fuel Payment if one member opts out.

sheramber

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% 😳

It is not extra tax.

It is recovering a payment you are not entitled to.

It is only a convenience that HMRC are recovering since they have details of your  taxable income. 

It is the same as recovering child benefit payments from those whose income has exceeded the limit. 

Dazed_and_C0nfused

sheramber 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% 😳

It is not extra tax.

It is recovering a payment you are not entitled to.

It is only a convenience that HMRC are recovering since they have details of your  taxable income. 

It is the same as recovering child benefit payments from those whose income has exceeded the limit. 

I know that and you know that but I think the majority will just see it as extra tax. 

Albeit it is a genuine cliff edge situation, you either pay nothing back or 100%.

sheramber

Dazed_and_C0nfused said:

sheramber 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% 😳

It is not extra tax.

It is recovering a payment you are not entitled to.

It is only a convenience that HMRC are recovering since they have details of your  taxable income. 

It is the same as recovering child benefit payments from those whose income has exceeded the limit. 

I know that and you know that but I think the majority will just see it as extra tax. 

Albeit it is a genuine cliff edge situation, you either pay nothing back or 100%.

Don't encourage them by agreeing it is extra tax.

HMRC staff get enough aggro without adding to it.

molerat

Would have been far simpler to make it taxable income