Anyone on DWP benefits warned they could be breaking 3 rules if they plan holiday abroad
There are things you need to be aware of before going on holiday, the DWP says (Image: Getty)
People claiming benefits must take three steps before going abroad this summer to stick to DWP rules. Failing to notify the relevant department could lead to your trip being viewed as a deliberate act of fraud by the Department for Work and Pensions ((DWP).
If you’re planning to leave the country, you’ll first need to inform the office that handles your benefits, which could be the pension service, Jobcentre or your work coach. You’ll probably need to provide details about when you’re leaving, where you’re going and when you plan to return.
You may also need to justify your reason for travelling – for instance, going abroad for medical treatment often allows you more flexibility to continue claiming benefits. This is necessary even if you’re only going overseas for a brief visit.
While some benefits may be suspended during your absence, others will continue to be paid as usual.
Secondly, if anything occurs while you’re away that could impact your benefit eligibility, you must report it as a change of circumstances with the DWP, just as you would if it happened at home.
This could include purchasing property, working or claiming pension or other benefits in another country. Lastly, if a benefit claimant passes away overseas, the DWP must be notified immediately, and you must cease claiming pension or benefits for that person.
Breaking the DWP holiday rules
Failure to adhere to these three rules could be construed as benefit fraud. Additionally, you may need to fulfil certain conditions while overseas to continue claiming your benefits legitimately.
However, this largely depends on the type of benefit you receive. For instance, if you’re on new-style Jobseeker’s Allowance, you must have registered at least four weeks prior to your trip and be actively seeking employment until the day you depart.
For those on Universal Credit, you need to meet the eligibility criteria throughout your holiday. If you receive benefits in error while abroad, you may be required to repay the funds you were not entitled to.
Typically, this amount is deducted from future benefit payments. Some trips might need to be shortened if you want to maintain your benefit payments.
For instance, Universal Credit can only be claimed during your first month abroad, unless you’re undergoing medical treatment, in which case it can be extended for up to six months. Your destination may also affect your claim.
Certain countries have social security agreements with the UK, allowing you to claim some UK benefits if you decide to move abroad permanently:
- Bosnia and Herzegovina
- Turkey
- Bermuda
- Gibraltar
- New Zealand
- Mauritius
- Channel Islands
- Jamaica
- North Macedonia
- USA
- EEA countries
- Serbia
- Kosovo
- Canada
- Montenegro
- Barbados
- the Philippines
- Israel
- Switzerland
Households lose £700 over HMRC tax code mistake on P60
Households lose £700 over HMRC tax code mistake on P60 (Image: Getty)
Britons have been urged to check tax codes on payslips, as overpayments average a staggering £700, according to some tax experts.
A P60 is a document that shows you how much income tax you’ve paid over the past tax year (April 6 to April 5). Your employer will usually send it to you between April and May, and experts warn it’s crucial to check the document properly to ensure you’ve been paying the right amount. Swift Refunds’ chief Robert Jones said: “Your P60 isn’t just a year-end summary, it may also be a warning sign. One incorrect tax code and HMRC could be taking too much out of your wages every month.”
The average tax overpayment due to incorrect codes is “nearly £700” (Image: Getty)
Tax codes, which determine how much is deducted from your pay, are crucial for ensuring you’re taxed correctly. If you’re on the wrong code, you might be paying too much or too little.
Tax codes appear on your payslip as a five-digit combination of letters and numbers. The most common code is 1257L, which signifies you’re entitled to the standard tax-free allowance of £12,570.
Other factors, such as receiving employee benefits, having multiple jobs, or being on certain allowances like the marriage allowance, can affect your code.
However, some people can simply be on the wrong code altogether. Mr Jones said: “The average tax overpayment due to incorrect codes is nearly £700, but recent HMRC figures show the real impact may be even higher. Check your P60, especially your tax code.
“If it’s anything other than 1257L, or you’ve switched jobs or had multiple employers, you could be owed money.”
What does my tax code mean?
Tax codes are made up of both numbers and letters. Here’s what the most common letters mean:
- L – Entitled to the standard tax-free personal allowance.
- M – Marriage Allowance: You’ve received a transfer of 10% of your partner’s personal allowance (£1,260).
- N – Marriage Allowance: You’ve transferred 10% of your personal allowance to your partner.
- S – Your income or pension is taxed using the rates in Scotland.
- T – Your tax code includes other calculations, e.g., for income over £100,000.
- 0T – Your personal allowance has been used up, or HMRC doesn’t have enough information to give you a code.
- BR – All income is taxed at the basic rate (usually used if you have multiple jobs or pensions).
- D0 – All income is taxed at the higher rate.
- D1 – All income is taxed at the additional rate.
- NT – No tax is being paid on this income.
- K – You have additional income that isn’t being taxed elsewhere, and it exceeds your personal allowance.
- W1, M1, X – Emergency tax codes. These suggest you may need to update your details with HMRC.
If you check your P60 and find you’ve overpaid tax, you can apply for a refund of the extra tax you’ve paid over the past four years.
If you’ve underpaid, HM Revenue and Customs (HMRC) will usually allow you to repay the owed amount over 12 months, provided you owe less than £3,000.
To check your tax code, look at your payslip, or log into your personal tax account via the HMRC app or website. You can also receive a tax code notice from HMRC by post.
It’s your responsibility to notify HMRC if your tax code is wrong. You can do this by filing it online, writing, or calling 0300 200 3300.
