New Tax Code number 26/27

GibbsRule_No3.

My last year code was 175L and the new year will be 124L. It tells me I will pay £150 more tax for the year. I'm confused as to the new code. I was expecting a way of seeing how they claimed the winter fuel allowance back but I'm thinking this shift is not it. The blurb on the website mentions "Minor company benefits, like health insurance or untaxed interest". My interest on my savings was not over £1000 and I don't have company Health insurance, so could it be just the Winter Fuel Allowance reclaim?

sheramber

https://forums.moneysavingexpert.com/discussion/6661092/new-tax-code-number-26-27

https://www.gov.uk/guidance/paying-back-the-winter-fuel-payment

GibbsRule_No3.

I could not watch the video yet, as my work block it. I did read the article, not sure how we opt out of the Winter Fuel Allowance as we don't know if it is going to be paid for winter 2026, or do we know? Also if I opt out but then retire or am made redundant, before the 26 payment can I opt back in, since it is only due to working that I am not eligible for WFA? I could leave at any moment as I'm 72.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81935552#Comment_81935552

You are too late to opt out of 25/26 payment and no details yet of 26/27 payment.

The following link tells you about opting out and opting back in later.

It refers to 25/26 but I expect similar advice will apply , if appropriate , for any 26/27 payment.

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

GibbsRule_No3.

I on purpose did not opt out of the 25/26 WFA but if they are going to charge £33 rather than £17 a month for the following years, then I will opt out of those years. (Should I still be in work!) At present I need to keep working for a decent living, rent to pay and never going to get any benefits, due to Work Pension added to State Pension.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81935592#Comment_81935592

The £33 is a one off (collecting it for two tax years in one tax year) it will be back to £17 once that is out of the way (assuming you receive £200).

GibbsRule_No3.

I cannot read it yet but have just received an email from HMRC saying I have a new Tax Code, so assume the one I was looking at the other day 124L will now have changed to reflect the WFA.

Managed to log on and see it. 32L

Is there a simple easy way to read and understand what everything says? Now it tells me I will pay £81 more next year, before the change it said £150. I have had a pay rise from next month, (lucky me) SP rise, and my personal Pensions will also rise as they were Civil Service based, though one was not actually CS, since the PA has not changed in years I must be assumed to pay lots more than £81 surely. If I can work it out I might be able to pay more into the Stakeholder Pension I am currently paying into, to save myself a bit of tax, even though that Pension has lost a lot recently due to the Iran/Trump war, as I won't be taking it yet, that is not a large worry.

molerat

The "more tax" amount is based on the (innacurate) estimated incomes shown in your tax account so is best ignored.

Dixy_3

I've just been sent a tax code change, which is due to WFP, but this is what the info in the app says.

How does a £100 winter fuel payment become a charge for £500?

Winter Fuel Payment Charge - based on a charge of £100	£0	£500

Dazed_and_C0nfused

You pay tax on an extra £500.

If you are a basic rate payer (20%) then that is an extra £100 in tax.

GibbsRule_No3.

https://forums.moneysavingexpert.com/discussion/comment/81938820#Comment_81938820

Since I am on my own, mine is the £1000 rate on the £200, thanks to D&C for the explanation.