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Wales Online
5 days ago
- Business
- Wales Online
DWP confirms Winter Fuel Payment deadline after UK Government U-turn
DWP confirms Winter Fuel Payment deadline after UK Government U-turn The Government announced its U-turn on the payments in June, meaning nine million pensioners in England and Wales will receive the Winter Fuel Payment from the DWP this winter (Image: Getty Images ) The Department for Work and Pensions (DWP) has set the deadline for pensioners who want to opt out of the Winter Fuel Payment. In a reversal of policy announced in June, nine million pensioners in England and Wales will receive the Winter Fuel Payment from the DWP this winter. Last year, payments were reduced as they became means-tested for the first time, with only those on certain benefits receiving the payment. This effectively lowered the income threshold to just £11,600, according to MoneySavingExpert. Read the biggest stories in Wales first by signing up to our daily newsletter here Under the new changes, all pensioners earning less than £35,000 a year will automatically receive a payment of either £200 or £300 this year. Those earning over £35,000 a year will have their Winter Fuel Payment automatically recovered by HMRC through PAYE or self-assessment after they receive it, reports the Manchester Evening News. Article continues below Pensioners earning above this threshold who wish to opt out of receiving the Winter Fuel Payment initially have until 15 September to inform the Government, according to the Mirror. The income eligibility is calculated per person. For instance, if you earn £30,000 a year and your partner earns £40,000, one person would retain their share of the Winter Fuel Payment while the other would repay it. You can verify whether your Winter Fuel Payment will be reclaimed by HMRC through the website. Katherine Ford, ICAEW Technical Manager, Tax, explained: "Pensioners have until Monday 15 September 2025 to contact HMRC to opt out of the Winter Fuel Payments if their total income for tax purposes is more than £35,000. "HMRC have a useful online tool to check if income is over this amount. If a person with income over £35,000 receives the payment, it will be recovered automatically through their pay as you earn tax code for 2026/2027, unless they are in self-assessment, in which case it will be added by HMRC to their tax return for 2025/2026." Should you be receiving one of these benefits during the qualifying week - which for this year runs from September 15 to 21 - and are above the State Pension age, then your payment will arrive automatically. The benefits that make you eligible for a Winter Fuel Payment include:. Two categories will be required to submit a claim either by post or telephone. Should you not receive any of these benefits, then you'll need to apply for your Winter Fuel Payment if either of the following circumstances apply:. Should you need to make a claim, postal applications will be available from September 15, whilst telephone applications open from October 15. Winter Fuel Payments are valued at £200 for qualifying households, or £300 for qualifying households containing someone aged over 80. Your eligibility hinges on your age at the end of the qualifying week. You won't qualify if you were hospitalised receiving free treatment for the entirety of the qualifying week, and the year prior to that, or if you were incarcerated during the qualifying week. Additionally, you won't be eligible if you resided in a care home continuously from 23 June 2025 or earlier and you're claiming certain benefits including Universal Credit and Pension Credit. In Scotland, the Winter Fuel Payment has been superseded by the new Pension Age Winter Heating Payment. Article continues below If you wish to opt out of receiving the Winter Fuel Payment, you can complete a form on the website or contact the Winter Fuel Payment Centre via post or telephone. Join our WhatsApp community group where you can get the latest stories delivered straight to your phone
Daily Mirror
12-08-2025
- Business
- Daily Mirror
DWP confirms new Winter Fuel Payment deadline with pensioners urged to act now
If you earn over £35,000 a year, then your Winter Fuel Payment will be automatically recovered by HMRC through PAYE or self-assessment Pensioners have until September 15 to opt out of the Winter Fuel Payment worth up to £300. Winter Fuel Payments are being paid this year to pensioners who were born before September 22, 1959 - but if you earn over £35,000 a year, then your Winter Fuel Payment will be automatically recovered by HMRC. This will be done through PAYE, or through self-assessment return. The income eligibility is based per person. For example, if you earn £30,000 a year and your partner earns £40,000, one person would keep their share of the Winter Fuel Payment but the other would pay it back. If you earn over £35,000, then there is an option to opt out of getting your Winter Fuel Payment. You can do this by filling out a form on or by contacting the Winter Fuel Payment Centre by post or telephone. It comes after reports DWP state pensioners are set to be given 'extra £352' completely free. You can check if your Winter Fuel Payment will be clawed back by HMRC on this page. Katherine Ford, ICAEW Technical Manager, Tax, said: 'Pensioners have until Monday 15 September 2025 to contact HMRC to opt out of the Winter Fuel Payments if their total income for tax purposes is more than £35,000. 'HMRC have a useful online tool to check if income is over this amount. If a person with income over £35,000 receives the payment, it will be recovered automatically through their pay as you earn tax code for 2026/2027, unless they are in self-assessment, in which case it will be added by HMRC to their tax return for 2025/2026.' Winter Fuel Payments are issued by the Department for Work and Pensions (DWP). If you are claiming one of these benefits during the qualifying week - which for this year is September 15 to 21, 2025 - then you will receive your payment automatically. The list of benefits that qualify for a Winter Fuel Payment are: State Pension Pension Credit Universal Credit Attendance Allowance Personal Independence Payment (PIP) Carer's Allowance Disability Living Allowance (DLA) Income Support income-related Employment and Support Allowance (ESA) Income-based Jobseeker's Allowance (JSA) Awards from the War Pensions Scheme Industrial Injuries Disablement Benefit Incapacity Benefit Industrial Death Benefit There are two groups that will need to put in a claim by post or over the phone. If you do not claim any of these benefit, then you will need to claim your Winter Fuel Payment if either of the following apply: You've not had the Winter Fuel Payment before You've deferred your State Pension since your last Winter Fuel Payment If you do need to claim, you will be able to apply by post from September 15, or by phone from October 15. Winter Fuel Payments are worth £200 for eligible households, or £300 for eligible households with someone aged over 80. Your eligibility will be based on your age by the end of the qualifying week. You won't be eligible if you were in hospital getting free treatment for the whole of the qualifying week, and the year before that, or if you were in prison during the qualifying week. You also weren't eligible if you lived in a care home for the whole time from June 23, 2025 or earlier and you claim certain benefits including Universal Credit and Pension Credit. In Scotland, the Winter Fuel Payment has been replaced with a new Pension Age Winter Heating Payment.
Yahoo
08-05-2025
- Business
- Yahoo
ICAEW warns IHT reforms could burden elderly business owners
The Institute of Chartered Accountants in England and Wales (ICAEW) has raised concerns over the government's proposed inheritance tax (IHT) reforms, which aim to cap reliefs at £1m ($1.33m). According to the professional membership organisation, these changes could disproportionately affect elderly business owners and farmers, especially those in poor health, by imposing unforeseen tax liabilities. The ICAEW's response to the government consultation highlights that the proposed IHT reforms could create significant financial challenges for business owners planning to pass on their enterprises. The estates of these owners may face a 20% IHT liability, complicating succession plans. The ICAEW also argues that the £1m exemption is insufficient, potentially affecting more estates than intended. These reforms, marking the first significant change in over three decades, could threaten the continuity of multi-generational businesses. With the proposed changes, the ICAEW warned that businesses might need to be dismantled to meet tax obligations, potentially hindering economic growth and disrupting long-term planning for business owners. ICAEW technical manager of tax Katherine Ford said: 'These unfair inheritance tax proposals will result in greater hardship for business owners who are elderly or in poor health, and will threaten the future of multi-generational businesses. 'These changes would also thwart economic growth, given the detrimental impact this tax policy would have on many communities. The loss of policy certainty and stability, which has lasted for a generation, will undermine the ability of these family businesses to plan, resulting in severe consequences for UK business and the agricultural sector. 'With certainty now gone, business owners will be left to scramble with short notice – that is no way to design policy. At £1m, the allowance is also not sufficient and could jeopardise the viability of businesses and family farms if not increased.' The ICAEW suggests that elderly or terminally ill owners may struggle to make lifetime gifts to avoid IHT, as they might not survive the required seven-year period for exemption. To address this, the ICAEW proposed a taper for gifts during the transitional period or transitional relief for active business owners and farmers over 65 years old. It also recommends that the £1m allowance be adjusted annually for inflation and be transferable between spouses to simplify tax planning. Smaller businesses, which exceed the valuation threshold but lack resources for tax planning, may face disproportionate challenges, according to the ICAEW. Paying the IHT over ten years could still pose practical problems, especially for shareholders in family companies relying on business property relief. The ICAEW warns of potential double tax charges if assets need to be sold to pay IHT, affecting business viability. Extending legislation around company purchase of own shares is suggested as a solution. The ICAEW also highlights the need for more professional valuations, which could increase financial burdens on taxpayers. Smaller businesses and farms near the £1m threshold may face scrutiny from HMRC valuation enquiries. The ICAEW urges the government to clarify the validity of valuations and adequately resource HMRC's IHT valuation team to prevent delays in estate administration. "ICAEW warns IHT reforms could burden elderly business owners " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
