Six significant changes from HMRC and the Department for Work and Pensions (DWP) are set to take effect in October. Everyone from self-employed individuals to benefits claimants is being advised to familiarise themselves with the details of each change.
The DWP is set to implement a series of changes including the Winter Fuel Payment, while the new Labour Government has also hinted at alterations to the state pension.
HMRC deadline – October 5
Those who have never filed a self-assessment tax return before must register with HMRC by October 5. This applies to the 2023/24 tax year.
People can check if they need to complete a tax return on GOV.UK.
Tax returns are typically required when people are self-employed and their income hasn’t had tax automatically deducted, or if they’ve earned additional money outside of their regular employment that hasn’t been taxed.
Common scenarios where people may need to complete a self-assessment tax return include if their self-employed income exceeds £1,000, they have to pay Capital Gains Tax on profits, or they have to pay the High Income Child Benefit Charge. More examples can be found on the Money Helper website.
New fraud rules for banks – October 7
From October 7, banks will be obligated to reimburse most victims of Authorised Push Payment (APP) scams. However, the maximum reimbursement limit has been slashed from £415,000 to £85,000.
The Payment Systems Regulator has stated that more than 99 percent of APP claims by volume will still fall within this cap.
APP fraud occurs when an individual unknowingly transfers money to a scammer posing as someone they know. Under the new regulations, banks will have to compensate APP victims unless they have shown gross negligence.
Bank account checks from DWP
Banks are now required to report any suspicious income or financial activity of benefits claimants to the DWP.
Winter Fuel Payment – throughout October
Letters informing households if they’re eligible for a Winter Fuel Payment will be sent throughout October. Speaking to Times Radio, Chancellor Rachel Reeves defended her decision to means-test the benefit.
She emphasised that the increased uptake of Pension Credit and the retention of the state pension triple lock would safeguard incomes. The cut in winter fuel means approximately 10 million pensioners will no longer receive the payment of up to £300 to assist with heating their homes.
Chancellor Rachel Reeves has highlighted the success of the campaign to boost Pension Credit uptake, stating: “We’re now seeing applications at more than 10,000 a week, they were around 3,000 a week previously”.
State Pension and Budget – October 30
Ms Reeves further committed to maintaining the triple lock, which increases the state pension annually based on the higher figure out of inflation, wage growth, or 2.5 percent.
She said: “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.”
When questioned about potential cuts to public services, she firmly stated: “There will be growth in public spending”.
In light of the upcoming Budget on October 30 and the need to address what the Labour government has branded a £22billion shortfall in public finances, there has been speculation about the future of the ‘triple lock‘ on pensions.
Despite concerns, the Treasury anticipates that the new full state pension will see an above-inflation increase of over £400 a year in cash terms by 2025, safeguarding the financial security of pensioners.
HMRC deadline – October 31
The deadline for filing a self-assessment tax return by post is October 31, warns HMRC. Those who miss the deadline will be slapped with a late filing penalty of £100 if their tax return is up to three months late. Further charges can be added if payment exceeds this – plus interest.
Those who fail to send their paper form on time have the option to fill out the tax return online. The deadline for this is January 31, 2025.
The deadline for paying the tax owed also falls on January 31, 2025.
