Winter Fuel Payment charge?

Albermarle

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

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.

As explained above, adjusting your personal allowance by £500, will mean you pay an extra £100 in tax ( assuming you are a basic rate taxpayer) . So HMRC did exactly the right thing.

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.

I have no idea what this is about, I suspect you have confused each other .

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

This is also nonsense. If your earn less than £35K you keep the £100 allowance. If you earn over £35k, you have to pay it all back.

I work for a Chartered Accountant . Presumably doing something other than accounting…………

poseidon1

I received WFA for the 1st time last winter, so will have to pay it back via self assessment for 2025/26 which will be a mild nuisance.

To avoid future receipts ( I am a 40% taxpayer), I have just now opted out using the online system below - only took a few minutes, so not onerous

https://submit.forms.service.gov.uk/form/264648/opt-out-of-winter-fuel-payment/9sJX5i5o

brewerdave

I'm opting to receive WFA as an interest free loan from HMG (For the first couple of years anyway ) - assuming the opt out system works ie non receivers DON'T get taxed, I'll opt out later.

One thing I'm not sure about - is the £35k limit "frozen" ?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81957439#Comment_81957439

I don't remember Rachel saying otherwise, but maybe she will change that at the next budget?

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81957439#Comment_81957439

I don’t think it has been confirmed that there will be a winter fuel payment next year or what the eligibility will be.

need to ask Rachel.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81957493#Comment_81957493

Although @poseidon1 ( post above) has managed to opt out of this years payment, even though it has not been confirmed there will even be one. I thought the opt out for this year would be blocked for now, but obviously not.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81957805#Comment_81957805

I think this update on gov.uk is confirming that payments will be made again this year.

https://www.gov.uk/winter-fuel-payment/how-much-youll-get