Bereavement benefits Coding form Guidance
In our past stories we have had a look at how tying the knot can bring tax benefits. These have ranged from capital gains tax to income tax and pensions
Today we will talk about how the death of a spouse affects your finances. The state pays a bereavement allowance to recently widowed spouses and civil partners but those merely living together are not entitled to these.
The non-taxable allowance is paid out if your spouse dies when you are over 45 but under the state pension age. The benefit is paid for 52 weeks after death and the amount that you get depends on how much National Insurance contributions were paid in their lifetime. Maximum weekly payments are £31.79 for a 45 year old rising to £106 for those between 55 and state pension age.
You may also be eligible for extra income from annuities. The extra money might affect how much tax you need to pay and you would need to be issued the P161(W) Bereavement Benefit Coding form.
Additionally if your spouse was born before April 6, 1935 and if you had been claiming the married couple’s allowance. If one of you dies, you would still be eligible for the allowance. The same applies to blind person’s allowance; if your spouse was claiming this and didn’t have enough income in the year they dies to use up all the allowance, you can ask HMRC to transfer what is left to you for that tax year.
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A little clarificationby AuroraBlue
If you got severance, you won't get UI benefits until it runs out. they cannot reject your claim if you don't apply for a different position at the company, but they could if you declined to accept an official job offer. the HR guy is just following protocol, is required to tell you that you are welcome to apply for other jobs within the company since your position was eliminated. the company could be sued if he didn't.
same thing happened to me a few months back. didn't bother to apply for other jobs within the company, already knew it would be a waste of time as that was what got me laid off in the first place