Losing a partner can lead to significant financial changes, including tax and benefits adjustments that can be confusing to navigate
London: Losing a partner is tough, and it can shake up your finances in ways you might not expect. It’s a lot to handle, but remember, you’re not alone. There’s help out there to guide you through this challenging time.
When your partner passes away, your tax, benefits, and pension situation can shift. It’s important to know what changes might happen and how to manage them. Taking things step by step can really help ease the process.
First off, make sure to let the right people know about your situation. This includes tax authorities and any benefit providers. If you’re feeling lost, don’t hesitate to reach out for professional advice. They can help you figure out what you need to do next.
Now, about your taxes. If your income changes—maybe you’re getting more from pensions or benefits—you might end up paying more tax. But if your income drops, you could pay less. It’s all about your new financial picture.
Also, your personal allowance might change. If you have income from various sources, like bank interest or rental income, you need to inform HMRC. But don’t worry, you don’t have to report income that’s already taxed through PAYE or from non-taxable sources.
If you’re registered for Self Assessment, you can update your info there. Otherwise, just give HMRC a call for help. There are also some tax allowances you should check, like the married couple’s allowance, which stops after the current tax year if your partner was born before April 1935.
If your partner claimed the blind person’s allowance, you can ask HMRC to transfer any unused amount to you. And if you were married before April 1977, you might still pay a lower national insurance rate. It’s worth checking!
There are also support options available, like the Funeral Expenses Payment if you’re on a low income, or the Bereavement Support Payment if your partner passed away recently. If you have kids, you might qualify for the Widowed Parent’s Allowance too.
For Child Benefit, if your partner was the one claiming it, you’ll need to make a new claim and notify the Tax Credit Office about their passing. If your income is lower now, you might be eligible for extra help with heating costs or other benefits.
When it comes to pensions, if you’re over State Pension age, you might get extra payments based on your partner’s National Insurance contributions. The rules depend on when you reached State Pension age, so it’s good to check.
If your partner had a private pension, you could receive payments from their workplace or personal pension scheme. Just contact the provider to see what’s available, but keep in mind that these payments might be taxable.
Lastly, if your partner’s death was related to Armed Forces service, you might qualify for a war widow’s or widower’s pension. It’s a lot to take in, but knowing your options can really help you navigate this tough time.
