Taxing winter fuel allowance would raise £230m

Energy meterThe Government would recoup around £230 million a year if the winter fuel allowance was taxed, a Treasury minister says.

At the moment the payments of £200 to people over the women's state pension age and £300 to those over 80 are handed out tax-free.
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Treasury Minister Lord Sassoon said in a written parliamentary answer that if the payments stayed the same but were subject to income tax, the Exchequer would get £230 million back in each of the next five financial years.
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His response came in reply to a question from Liberal Democrat Lord Avebury, 84, who also asked about the amount that would be raised from taxing free television licences and bus passes.

Lord Sassoon said the Government did not have estimates of those figures.

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Taxing winter fuel allowance would raise £230m

If you wear a uniform of any kind to work and have to wash, repair or replace it yourself, you may be able to reclaim tax paid over the last four years. For some people, this could mean a windfall worth hundreds of pounds

The interest you receive on savings accounts (with the exception of cash Isas) is automatically taxed at a rate of 20%.

Higher-rate taxpayers therefore tend to owe money on the interest they are paid throughout the year. If, however, you are on a low income or not earning at all, you should be able to claim all or some of the tax deducted back

You can apply for a refund of vehicle tax if you are the current registered keeper or were the last registered keeper of your vehicle that no longer needs a tax disc

If you pay tax on a company, personal or State Pension through PAYE (the system employers use to deduct tax from your wages), you may well end up overpaying

There is a limit to the amount you need to pay in NI, whether or not you work for an employer.

Instances in which you may find that you have overpaid include if you work two or more jobs and earn more than £817 a week and if you move from self-employment to employment, but continue to pay Class 2 National Insurance contributions

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