Martin Lewis gives Premium Bonds update over winter fuel payment fears | Personal Finance | Finance
Personal Finance Specialist Martin Lewis updated people with premium bonds that can worry about the potential impact on winter fuel payments. At the beginning of this month, Chancellor Rachel Reeves made a 2-300 £ U-turn lost by 9 million retirees on his ax.
This means that everyone will automatically benefit – but everyone with more than £ 35,000 will have to pay again. Mr. Lewis explained that this is related to taxable income and that there is no interest earned by savings, although savings are exempt.
For basic rates of taxpayers, the taxpayers earned below £ 50.270 have a savings allowance that is exempt from £ 1,000 – this means that you may be £ 20,000 in 5 percent savings account and will be exempt from tax. Speaking at Podcast, Lewis explained in some cases that a modest savings interest can contribute to this collection and potentially push people to the threshold value.
In the case of premium bonds, Mr. Lewis suggested that people should be good because their gains cannot be taxed, although they have not yet been verified. He said: “We do not yet know whether the premium bond is counted.
“The personal savings allowance, while the savings interest tax is allowed to earn free of charge – the basic ratio you can earn an unqualified interest as a taxpayer – this interest is still counted for your tax -exempt earnings for winter fuel payment.
“So let me make a really simple example: you earn £ 1,000 in a Jesus. No number. You earn £ 500 in your personal savings allowance, so you don’t pay taxes.
However, the protectors warned that having their money wrong accounts could push them to the threshold and allow them to miss winter fuel payments. Seekyan Elaine said the state was retired and worked part -time. He thought he had won a little below £ 35,000, but he received interest and interest rates from cash ISAs. He said: mi Will this be included in the total amount of income, because if so, it puts me on £ 35,000 and I cannot.
Martin replied: “The first thing to say is that the average test will be based on your taxable income for the current year of 2025-6. It is all your earnings that are subject to income tax. So any private pension income, any state pension income, any employment income, any savings other than a Jesus.
He continued: “A Jesus’ interest is not considered, the interest outside of a Jesus is considered.”
In Elaine’s case, Mr. Lewis said that he could carry his savings to cash because he did not use the £ 20,000 limit of Isa, and that he would not count interest, and that he would not be on the threshold and he would receive winter fuel payment. Elaine said, “I will do this.” He said.
Mr. Lewis, investment dividends outside the number of ISAs, the assistance of the caregiver, incapacity benefit and other tax -subject state aid are also counted, he said.
In terms of what is not counted to the amount of £ 35,000, Lewis said that winter fuel payment itself, investment income or savings income within ISAS, a pension, capital gain and participation allowance, disability life allowance pension loans and pips are not counted to £ 35,000. “In general, if it can be taxed, usually not taxed, not count.”
