Callistemon213
^I think it would have been simpler to let the universal payments go ahead this year but legislate in the Autumn Statement to make WFP taxable (one of the options in the research paper) from 2025/26 and claw it back in tax adjustments starting from 6 April 2025^
Tell her, will you! 😃
Actually, would that be counter-productive, ie cost more in administration?
There’s some paper admin goes on, isn't there e.g. sending out the letters notifying us of the WFP - which I’m not sure is strictly necessary beyond the first year so long as we receive the payment. Without digging into my papers, I think the letter only gives a general idea of when WFP might be paid - November to January?
DWP and HMRC communicate. One tells the other what taxable benefits the person is going to receive and HMRC makes the tax code adjustment. It’s the way SP is dealt with so dealing with WFP in the same way would be straightforward.
Reeves really needs to address the issue of people with only state pension (and WFP if it’s taxed) being brought into the tax net because, as I said way upthread, there is no mechanism to deal with this beyond self assessment which would be a burden for many people. Far simpler and cheaper to keep people in receipt of state pension only out of the net by increasing personal allowances.
WFP to overseas residents - Europe only:
www.gov.uk/winter-fuel-payment/if-you-live-abroad
That's been another consideration over the years, discussed in the research paper Section 5.1 the "temperature link". IDS getting very hot under the collar!