July 2025 Newsletter | Cylchlythyr Misol Gorffennaf 2025
1. The winter fuel payment for pensioners will be restored this upcoming winter. If you were born before 22 September 1959, you could receive £100-£300. However, if your income is above £35,000, HMRC will recover the winter fuel payment either via PAYE or via self-assessment (details TBC).
Remember, entitlement to the winter fuel payment is automatic - there is no need to apply. Widespread scams, including emails and texts purporting to be from the DWP are asking people to click on a link to ensure receipt of the payment. These are scams!!
2. Following last-minute changes to the Government's new welfare bill, no changes will be made to the Personal Independence Payment (PIP) eligibility criteria, with any potential changes deferred until late 2026.
3. To help households further with energy costs this winter, the "Warm Home Discount" of £150 will be extended to 2.7 million more households. The eligibility criteria have now changed to include all individuals on means-tested benefits and the £150 credit will be applied automatically by your provider to your energy bill later this year.
4. Are you self-employed? Have you already submitted your 2024-2025 tax return? If so, double check that HMRC have not added Class 2 National Insurance charges of £179.40 in error. For 2024-2025, if your self-employed profits are at least £6,725, you do not need to pay Class 2 NICs. There are some cases of HMRC erroneously adding these charges to an individual's tax bill. If you are unsure, especially if you have prepared your tax return yourself, check with HMRC.
Ask Huw & Aled
Q: My husband and I are purchasing a rental property and we have decided that I will own 70% of the house, with my husband owning the other 30%. Can we split the rental income in our tax returns 70:30 too?
A: Yes, but action is required. When married couples own property in unequal proportions, HMRC's default position for income tax purposes is for the rental income and costs to be split 50:50, even if the ownership of the underlying asset is different (in this example, the house ownership is 70:30).
If you wish to split the rental income and costs in your tax returns to reflect the 70:30 ownership of the house itself, a specific declaration is required.
'Form 17' will need to completed and sent to HMRC within 60 days of purchasing the property (or the date the ownership changes to an unequal percentage), along with evidence of the signed legal papers.
Remember, you cannot change the allocation of rental income and costs between spouses who own a house 50:50 (the ownership of the asset itself must be changed to benefit from this rule).
