Six DWP and HMRC money changes coming in October - from bank accounts to State Pension
SIX HMRC and Department for Work and Pensions changes are coming during October - with claimants urged to take note. Everybody from self-employed people to benefits claimants are being told to brush up on the details of each change being rolled out.
HMRC, the taxman, and benefits department the DWP are impacted by the shake-up. The DWP will make a string of changes including the Winter Fuel Payment, while the new Labour Party government has also teased changes for the state pension.
BirminghamLive has rounded up the details of the six biggest changes hitting benefits claimants and workers up and down the country. Read on below for details of each, including how you're affected and whether you need to take action...
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HMRC deadline - October 5
If you've never submitted a self-assessment tax return before, you must register with HMRC by October 5. This is for the 2023/24 tax year. You can check if you need to complete a tax return on GOV.UK. Tax returns are normally due if you're self-employed and your income hasn't had tax automatically deducted, or if you've earned extra cash outside of your normal employment that has not been taxed.
Some common examples where you may need to fill out a self-assessment tax return include if your self-employed income is over £1,000, you had to pay Capital Gains Tax on profits, or you had to pay the High Income Child Benefit Charge. See more examples on the Money Helper website.
New fraud rules for banks - October 7
Banks will have to reimburse most victims of Authorised Push Payment (APP) scams from October 7 - but the maximum reimbursement limit has been cut from £415,000 to £85,000. The Payment Systems Regulator says more than 99% of APP claims by volume will still be covered by this cap.
APP fraud happens when a victim unwittingly sends money to a scammer who is pretending to be someone they know. Under the new rules, banks will be required to reimburse APP victims unless they have been grossly negligent.
Bank account checks from DWP - TBC
Banks must report suspicious income or financial activity of benefits claimants to the DWP.
Winter Fuel Payment - throughout October
Speaking to Times Radio Ms Reeves defended her decision to means-test winter fuel payments, highlighting that the increased take-up of pension credit and the retention of the state pension triple lock would protect incomes. The winter fuel axe means about 10 million pensioners will no longer get the payment of ujp to £300 to help heating their homes.
She said that the campaign to encourage take-up of pension credit, which means people become eligible for the winter fuel payment, meant “we’re now seeing applications at more than 10,000 a week, they were around 3,000 a week previously”. Ms Reeves said: “But, also, we’re committed to keeping the triple lock, not just for one year, but for the whole of this parliament. Already, the triple lock means that the pension this year is worth £900 more than a year ago, I’ll announce at the Budget probably another increase of around £460 next April, and over the course of this parliament, the new state pension is likely to rise by £1,700.
“So, we are protecting pension incomes through the triple lock, which means that they will go up by the highest of inflation, 2.5% or earnings.” Asked whether there would be cuts to public services, Rachel Reeves insisted “there will be growth in public spending”.
Budget and Triple Lock - October 30
Chancellor Rachel Reeves has spoken out about speculation that the 'triple lock' pensions pledge could fall victim to cuts in the Budget next month. With the government saying it needs to fill a £22 billion hole in the public finances, some have suggested it is unsustainable.
The triple lock means the rise in state pension will either match the rate of inflation, average earnings or 2.5% – whichever is highest. The Treasury expects the new full state pension to be boosted above inflation by more than £400 a year in cash terms in 2025.
HMRC deadline - October 31
The deadline for filing your self-assessment tax return by post is October 31. If you miss the deadline, you’ll be charged a late filing penalty of £100 if your tax return is up to three months late. You can be charged more on top of this if it is later - plus interest - or if you pay your tax bill late.
If you don't send your paper form on time, you can instead fill out your tax return online. The deadline for this is January 31, 2025. The deadline for paying the tax you owe is also January 31, 2025.