Winter Fuel Payment charge?

brewerdave

I have a deduction shown for 25-6 tax year for WFA as £500 - ie £100 actual payment in November, as expected.

However somehow that translates to a deduction for underpaid tax in next year's code of £590 !! I thought that the taxman was proposing to deduct twice the amount in tax year 26-7, so expected £1000.

I presume there is something else but can't find any other potential underpayments in 24-5 or 25-6, to explain the extra £90 deduction - No taxable savings interest or dividend payments. Tried to phone but ………..

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81946322#Comment_81946322

Have you checked* if you owe £18(?) for some other reason in this tax year?

*your own sums, not anything HMRC might tell you

The double year is 2027/28, not 2026/27

brewerdave

https://forums.moneysavingexpert.com/discussion/comment/81946329#Comment_81946329

Not yet, but will have to fire up the spreadsheet to do the sums - but shouldn't the Revenue explain the apparent £18 underpaid in 25-6 leading to a code restriction ? Can't see anything in my tax account pages.

Thanks for the info. re the double WFA deduction year. Didn't twig that they are doubling up in 27-8 tax year,not next year.

There will be literally millions of confused pensioners/tax payers trying to get their heads around their tax codes for 26-7 😣

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81946341#Comment_81946341

Did you get a tax code letter (called a P2 years ago)?

brewerdave

@Dazed_and_C0nfused - I haven't had anything via post from the tax man since 2022 as far as I can see . I have had emails at various times ,telling me to look for changes in my tax code etc in my online account.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81947123#Comment_81947123

Oh well, maybe back to pension and paper to see how much you think you will owe assuming a Winter tax charge of £100?

brewerdave

Just done that - on my spreadsheet, looks like I owe ~ £11 for 25-6 tax year PLUS the clawback of £100 for WFA.

What is "daft" is that the tax man altered my tax code on 25th March to claw back £10.24 by the end of the year but far too late for my pension provider to use the new code.!

IF it had happened then my tax due ~= tax paid.

Still can't find any explanation of the restriction of £590 in next year's code other than £500 for WFA in 25-6.

I'll wait now til I get formal P60s from the pension provider(s)

HarryJoe

HMRC haven't a clue what they're doing! I work for a Chartered Accountant and I couldn't begin to tell you about the level of incompetence we have to deal with every day!

I had an email on 26 March to say I had been issued with a new tax code and to log into my HMRC account. When I looked I noticed that they had deducted the Winter Fuel payment from my Personal allowance to the tune of £500. I'd only received £100 back in November so a phone call was required.

So yesterday I logged back in only to see that the tax code has changed yet again and any reference to the WFP was no longer showing.

I rang HMRC yesterday and spoke to a customer services agent who was clearly reading from a script as she didn't really know what she was talking about and couldn't explain it to me. Apparently the £100 is divided by 500 which leads to a "potential" underpayment of £91.40.

So basically I will pay back £91.40 of the £100 WFP so the benefit to my family and I is £8.60.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81956254#Comment_81956254

For a basic rate taxpayer a deduction of £500 would usually collect £100 (500 x 20%).

You seem to have done ok really if you only need to pay back £91.40.

Did you consider opting out of getting the payment from DWP or is your income at the level where you could potentially have kept the whole £100?

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/81956254#Comment_81956254

What were you expecting the adjustment to be if you received £100?

A £500 adjustment for a basic rate taxpayer recovers £100 - and you say you were a chartered accountant? Like some HMRC staff there are good and bad accountants.