Latest news with #AndyWood
Daily Record
03-07-2025
- Business
- Daily Record
Tax expert shares simple ways to get Winter Fuel Payment with a retirement income over £35,000
Pensioners with an income above £35,000 can either opt-out of the Winter Fuel Payment or repay it through PAYE or Self Assessment. Millions of people over State Pension age in England and Wales will receive up to £300 in Winter Fuel Payments from the Department for Work and Pensions (DWP) before the end of this year. Older people in Scotland will get up to £305 in Pension Age Winter Heating Payments from the Scottish Government. While guidance on on eligibility and payment amounts by household circumstances for Scots have not yet been updated for winter 2025/26, it's anticipated they will follow the same structure set out by the DWP. This means pensioners born before September 21, 1959 with an annual income of £35,000 or less will automatically qualify. The UK Government estimates two million pensioners have an income above £35,000 and can either opt out of the payment, or repay it through PAYE or Self Assessment. However, tax expert Andy Wood at Tax Natives, explains some simple ways those with higher incomes can still qualify for this year's Winter Fuel Payment. The UK Government changed the eligibility rules last month, meaning more people will get the payment this winter. The U-turn follows last year's means-testing of the Winter Fuel Payment, mainly restricting it to those receiving Pension Credit. According to the latest figures from HM Revenue and Customs (HMRC) nine million pensioners in England and Wales will now receive the benefit this winter. Around 850,000 Scots will receive the Pension Age Winter Heating Payment. The Winter Fuel Payment is worth £200 per household where occupants are aged between 66 and 79, or £300 per household where there is someone aged over 80. Payments will be issued automatically over November and December. In Scotland, those aged 66-79 will receive £203.40 and those aged 80 and over will receive £305.10. The amounts are higher due to the annual uprating and will be issued on November 30. However, if you're worried you won't qualify for either of these payments because your annual income is higher than the £35,000 threshold it might be worthwhile deciding now whether you should opt out of receiving the payment - which must be done by September 15 - or adopting smarter financial planning. Andy Wood at Tax Natives said: 'The UK Government only looks at your taxable income so there are some simple things you can do to reduce this, which means you can qualify for the Winter Fuel Payment as well as save tax.' Move your savings and investments into ISAs The £35,000 threshold will be based on an individual's taxable income, rather than their total income. This means one of the first things you should do is ensure you're making the most of ISAs. Any interest you make from cash ISAs or income from stocks and shares ISAs does not count towards your taxable income. In contrast, interest earned on non-ISA savings accounts, or taxable income from investments, will be included. Andy explained: 'Many pensioners may not realise that interest earned on savings held outside of ISAs count towards their total taxable income. With interest rates still relatively high, even modest savings can generate income that pushes someone over the threshold.' Example £20,000 in a savings account earning 4.5% would make £900 in interest for the year. While this falls within the personal savings allowance of £1,000 for basic-rate taxpayers and isn't taxed, it's still considered as 'taxable income' and counts toward the £35,000 Winter Fuel Payment limit. Andy added: 'ISAs offer a tax-free way to keep savings interest out of the income equation. Interest earned within an ISA is never taxed and does not count toward income calculations. 'With the £20,000 cash ISA allowance still available this tax year – and potential changes looming – they remain a smart choice for pensioners looking to protect their eligibility for benefits like the Winter Fuel Payment.' He also explained that as well as any ISA income or gains being tax-free, you also won't pay tax on withdrawals from an ISA, even if you cash in the full amount - so, you could cash in an ISA to supplement your retirement income, but it still won't count towards the Winter Fuel Payment criteria. Consider Premium Bonds if you've maxed out your ISA allowance Andy said that if you've already used this year's ISA allowance, and you have significant savings where the interest could cause you to breach the £35,000 taxable income limit, consider buying Premium Bonds. Any Premium Bond prizes you may win are tax-free, so therefore aren't part of your taxable income. Take your pension tax-free cash, but beware of taking more Andy explained that as well as ensuring you can enjoy the gains from your savings and investments without counting towards your taxable income, you should also have a look at your pensions. Taking the 25 per cent tax-free cash from any workplace or personal pensions can give your retirement income a decent boost, and crucially it's not taxable income. However, any other money from pensions, such as via an annuity, income drawdown or a lump sum is taxable. Andy suggests keeping an eye on your pension income and potentially combining pension and ISA income to keep you below the threshold. Example If you had previously been taking £30,000 from your pensions each year, and also receive £10,000 from the State Pension, that works out as £40,000 taxable income. However, if you reduced the £30,000 to £25,000 income from your pension, and topped up your income with £5,000 withdrawals from your ISA, then you would still have the same £40,000 total income, but only £35,000 would be taxable. Andy added: 'The criteria states you can receive the Winter Fuel Payment if your taxable income is at or below £35,000 a year. So, if it's exactly £35,000, you will still qualify. 'If you are receiving an annuity, it isn't possible to reduce this income, as it's a guaranteed pension income for life. If you are taking lump sums from your pension pot(s), or have set up an income drawdown arrangement, you can reduce the amounts to avoid tipping over the £35,000 threshold.' Think about deferring your State Pension Andy said: 'If you've followed the above steps, and you've worked out that claiming the State Pension will take your total taxable income above £35,000 and mean you don't qualify for the Winter Fuel Payment, you could consider deferring your State Pension. 'You don't need to do anything to defer it; you just don't claim it once you reach State Pension age.' He explained: 'Deferring your State Pension is an option. However, it's worth saying that deferring it means you will get a larger State Pension when you do come to claim it and this has the potential to push you up into higher tax bands or mean you no longer qualify for benefits you would have otherwise received. 'You also have to weigh up whether it's worth losing out on a year's worth of State Pension now in order to claim the Winter Fuel Payment plus a higher State Pension later.' However, Andy warned that it's important not to make any knee-jerk decisions. He added: 'Delaying claiming your State Pension increases your payments by 5.8 per cent for each year you defer. 'However, you will be giving up approximately £12,000 of income a year at current rates, assuming you are entitled to the full New State Pension, so it will take some time to recoup that.' Transfer income-generating assets to a spouse with less income Another way to reduce your taxable income is to move assets to a spouse or partner whose income is below the £35,000 threshold. Andy explained: 'For a couple where one person has an income above £35,000 and one has an income of less than this amount, they will both get the Winter Fuel Payment (which is £100 each, or £150 if one person is over 80), but the higher earner will have to pay theirs back. 'If one of you has taxable income of £40,000 and the other has £20,000, by shifting £5,000 of income to the lower income partner, you can still enjoy £60,000 total household income together - and both keep the Winter Fuel Payment.' Don't worry about certain benefits adding to your income Many benefits are not taxable, so you can enjoy receiving them without worrying they will contribute to the £35,000 limit. Disability benefits including Attendance Allowance, Personal Independence Payment (PIP), Adult Disability Payment (ADP) and Disability Living Allowance (DLA) are not means-tested, or taxable. However, some are, such as Carer's Allowance, or the Carer's Support Payment in Scotland, so remember to include the taxable ones when calculating if you're at risk of losing the Winter Fuel Payment. Give excess money to charity Andy said one simple way of reducing your taxable income that is often overlooked is by making donations to charity. He explained: 'If you donate through Gift Aid, this means you can deduct the value of the donation, plus the basic rate of tax, which is currently 20 per cent, from your taxable income. 'If you'd been considering giving to charity through your will, making some of these donations now will help the charity faster, lower your taxable income and could mean you keep the Winter Fuel Payment.' Eligibility for Winter Fuel Payments You can get a Winter Fuel Payment if you were born before September 22, 1959 and live in England or Wales. When you will not be eligible You will not be eligible if you: live outside England and Wales were in hospital getting free treatment for the whole of the week of 15 to 21 September 2025 and the year before that need permission to enter the UK and your granted leave says that you cannot claim public funds were in prison for the whole of the week of 15 to 21 September 2025 Opting out of Winter Fuel Payment You can choose to opt out of getting all future Winter Fuel Payments. To opt out you need to contact the Winter Fuel Payment Centre before September 15, 2025. Full details on what you will need before contacting the Winter Fuel Payment Centre can be found on here.
Daily Mirror
18-06-2025
- Business
- Daily Mirror
Alert that HMRC could investigate after 'watching your Instagram'
People might trigger a tax investigation if their 'lavish lifestyle' doesn't add up to what should be in their bank account People might not be aware that their social media accounts could be monitored and flagged if authorities notice they're living a lifestyle that their finances cannot support. The tactic is being used to ensure people are paying the right amount of tax. Rachel Harris, an accountant and tax expert, warned that people should be careful with their social media brags, as HM Revenue and Customs [HMRC] could easily be "watching your Instagram Stories." She said: "HMRC do a lot of work behind the scenes to understand who to investigate and when. One of the things that HMRC agents are trained to do is compare your income to your Instagram. "They're looking for something called lifestyle inconsistency. If you're posting online about luxury holidays and a lavish lifestyle, but your declared income doesn't match up, HMRC then have reason to investigate you. "They're trained to spot red flags like frequent travel, designer purchases and photos of property and assets that don't appear on your tax returns. HMRC combine what you post with the data that they already collect from your bank, your employer and your tax return." She added that people "could face an investigation" if the cash to fund this lifestyle doesn't add up to what you declare. The tactic isn't just limited to Instagram - it's all social media. The Mirror previously reported on a warning issued by tax barrister Andy Wood that HMRC's improved scrutiny of online behaviour may lead to potential investigations into your finances. He said: "HMRC has really ramped up its use of technology and data analytics to make sure people are paying the right amount of tax. Public social media posts are now being scrutinised, as they can provide evidence of suspected financial discrepancies. "HMRC is legally entitled to view and analyse any publicly available information on social media. This includes posts, photos, and videos that may suggest a lifestyle inconsistent with reported income or assets, evidence which can line up other findings and trigger investigations." What do I have to declare to HMRC? People might have to share certain information about their additional income with HMRC. This would be separate from what any employer already provides to the authority or not already included in your Self Assessment if you work for yourself. This may include money you earn from things like: selling things - for example at car boot sales or auctions, or online doing casual jobs such as gardening, food delivery or babysitting charging other people for using your equipment or tools renting out property or part of your home - including for holidays creating content online - for example on social media If you receive £1,000 or less from trading or casual activities between April 6 2025 and April 5 2026, you can use your trading allowance. This means you do not have to report your sales to HMRC. Use this free online tool to check if you should make a declaration. You can get help if you do not understand something about your tax by contacting HM Revenue and Customs.
The Age
05-06-2025
- Politics
- The Age
WA news LIVE: Vision reveals passengers' scramble as Bali fast ferry capsizes
Latest posts Latest posts 9.47am New vision of Bali fast ferry horror Yesterday we brought you the story of Perth tourists being rescued from the waters off Bali along with a crowd of travellers after their fast ferry capsized. Andy Wood told Simon Beaumont on 6PR's Perth Today that about 100 people were on board when the ferry capsized, and many were not from Australia and couldn't swim. 'The people particularly up the back where the water was coming were in a real panic state, so people were smashing the windows to try and get out on the sides,' he said. New vision of the ordeal in Nusa Lembongan's Mushroom Bay shows a crowd of passengers clinging to the boat's bow as it lists on its side in choppy waters. Video from inside the ferry shows a frantic rush as passengers scramble for the exit. Thankfully, there were no serious injuries reported. Watch 9News Perth 's story below: 9.47am Across Australia and around the world Here's what's making news elsewhere this morning. Tensions between Donald Trump and his former 'first buddy' Elon Musk have erupted into open warfare. US beef could be allowed into Australia for the first time in decades through a biosecurity rule review to secure the removal of tariffs. In Queensland, the housemates of missing teenager Pheobe Bishop have been charged with murder, as her mother describes how the family's world has been shattered. In NSW, Police Minister Yasmin Catley has warned that law enforcement officers cannot be expected to regulate the ballooning tobacco black market. In Victoria, a major cruise operator's decision to quit berthing two of its premier cruise lines in Melbourne this year is set to blow an estimated $37.6 million hole in the state's economy. punish Ukraine as well as Russia if he does not believe they are sincere about peace.
Sydney Morning Herald
05-06-2025
- Politics
- Sydney Morning Herald
WA news LIVE: Vision reveals passengers' scramble as Bali fast ferry capsizes
Latest posts Latest posts 9.47am New vision of Bali fast ferry horror Yesterday we brought you the story of Perth tourists being rescued from the waters off Bali along with a crowd of travellers after their fast ferry capsized. Andy Wood told Simon Beaumont on 6PR's Perth Today that about 100 people were on board when the ferry capsized, and many were not from Australia and couldn't swim. 'The people particularly up the back where the water was coming were in a real panic state, so people were smashing the windows to try and get out on the sides,' he said. New vision of the ordeal in Nusa Lembongan's Mushroom Bay shows a crowd of passengers clinging to the boat's bow as it lists on its side in choppy waters. Video from inside the ferry shows a frantic rush as passengers scramble for the exit. Thankfully, there were no serious injuries reported. Watch 9News Perth 's story below: 9.47am Across Australia and around the world Here's what's making news elsewhere this morning. Tensions between Donald Trump and his former 'first buddy' Elon Musk have erupted into open warfare. US beef could be allowed into Australia for the first time in decades through a biosecurity rule review to secure the removal of tariffs. In Queensland, the housemates of missing teenager Pheobe Bishop have been charged with murder, as her mother describes how the family's world has been shattered. In NSW, Police Minister Yasmin Catley has warned that law enforcement officers cannot be expected to regulate the ballooning tobacco black market. In Victoria, a major cruise operator's decision to quit berthing two of its premier cruise lines in Melbourne this year is set to blow an estimated $37.6 million hole in the state's economy. punish Ukraine as well as Russia if he does not believe they are sincere about peace.
Yahoo
05-06-2025
- General
- Yahoo
Wave Capsizes Boat in Bali, Tourists Panic to Escape (Video)
Passengers on a ferry boat heading from Bali to the nearby isle of Nusa Lembongan, yesterday, experienced a horror scenario as the boat was struck by strong surf, and began to sink. Panic spread through the ferry, carrying around 100 people, as they broke windows, fighting for their lives. Luckily, there have been no reports of casualties or serious injuries. Scenes from the sinking boat, however, showed chaos and cries for help – no doubt turning a dream vacation for the passengers, many of whom were tourists, into a momentary nightmare. A handful of Australians were amongst the travelers on the sinking ship, and local news heard their tales. 'The one point of exit was literally a small little hatch,' said Andy Wood, a man from Perth aboard the boat with his wife and two kids. 'So, I think the people, particularly in the back where the water was coming in, were in a real panic state.' One woman busted open a window to escape. Bobbing bodies were floating as the boat slowly sank. Some people clinging on the bow, reaching out for help as another boat swooped in to rescue.'It was just people who weren't used to being familiar in water,' Wood continued. 'And I think the majority of them couldn't swim, so it was causing a fair bit of anxiety and panic amongst people.' Reportedly, the boat was overcapacity – that's being investigated as a possible cause of the catastrophe. Meanwhile, another recent near-tragedy on a separate Balinese island, also involving a tourist and the wrath of the ocean. A travel influencer was at Angel's Billabong, a popular sightseer spot on Nusa Penida, when a rogue wave almost swept her to a watery grave. Sadly, others have died at the spot. Bali bagus? Bali Capsizes Boat in Bali, Tourists Panic to Escape (Video) first appeared on Surfer on Jun 5, 2025
