HMRC sending tax bills to state pensioners with Winter Fuel Payments

HMRC sending tax bills to state pensioners with Winter Fuel Payments Automatic monthly tax charges will apply to some state pensioners. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Claire Schofield 13:10, Sun, Oct 25, 2026 Updated: 13:15, Sun, Oct 25, 2026 Pensioners with an income over £35,000 will have their Winter Fuel Payment clawed back by HMRC (Image: Getty) HM Revenue and Customs (HMRC) will be sending tax bills to state pensioners who receive a Winter Fuel Payment this year and exceed an annual income threshold. Pensioners who were born on or before June 27, 1960, will receive a Winter Fuel Payment this year, unless they opted out, and these are worth between £100 and £300. In most cases, pensioners will receive the payment automatically if they're eligible and these are due to be issued by the Department for Work and Pensions (DWP) from November. But not all pensioners are entitled to keep the money as those with a total individual annual income over £35,000 will have the money automatically clawed back by HMRC . Pensioners who exceed the £35,000 earnings threshold can no longer opt out of the Winter Fuel Payment for 2026 to 2027 , and thereby avoid extra tax charges in the following tax year, as the deadline has now passed. As such, those who failed to opt out in time will receive a Winter Fuel Payment from next month and will later have it taken back by HMRC through additional monthly tax charges . Article continues below ADVERTISEMENT HMRC will usually collect the amount you owe by changing your tax code, and you’ll then see the tax deducted from your wages, salary or pension. If you complete a Self Assessment tax return, you’ll pay it through your tax bill instead. According to the tax office, a typical Winter Fuel Payment is £200 and this would result in additional tax charges of around £17 per month. So if pensioners receive a payment of this amount in both the 2026 to 2027 and 2027 to 2028 tax years, HMRC will deduct around £33 per month extra in tax in the 2027 to 2028 tax year. Get personal finance news, money saving tips and advice plus selcted offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . Of course, if you receive a £300 Winter Fuel Payment , your monthly tax charges will be higher. HMRC said: “HMRC will automatically collect the payment for pensioners with total income over £35,000 through PAYE tax codes unless they already file a Self Assessment tax return. Article continues below ADVERTISEMENT "Following announcements by the Scottish Government and Northern Ireland Executive, this tax charge will apply UK-wide. For the 2026 to 2027 tax year, for a typical winter payment of £200, approximately £17 per month will be deducted from a PAYE customer. Article continues below ADVERTISEMENT State pensioners set for boosted £250.70 payments Older state pensioners can cut BBC TV Licence bill to £0 in 16 minutes "In the tax year 2027 to 2028, deductions will temporarily rise to approximately £33 per month for a typical payment of £200. This is because HMRC will be recovering payments for both the 2026 and 2027 winter payments in the tax year 2027 to 2028. “This supports the transition to in-year recovery of payments, in line with normal PAYE practice. From the tax 2028 to 2029 onwards, deductions will return to approximately £17 per month.” If HMRC changes your tax code to reclaim your Winter Fuel Payment, you’ll be contacted by email or post. This means the tax deducted from your wages, salary, or pension will increase. While pensioners can no longer opt out of the Winter Fuel Payment this year, it will be possible to opt out for next year’s payment from December 21. Opting out won’t affect your State Pension, and you don’t need to opt out every year, as you won’t receive a payment in future unless you choose to opt back in. If you do decide to opt back in, you can do so by contacting the Winter Fuel Payment Centre. To get a payment for winter 2026 to 2027, you will need to contact the service before March 31, 2027. The DWP said: “You can no longer opt of the Winter Fuel Payment for 2026 to 2027. You’ll be able to opt out of the Winter Fuel Payment for 2027 to 2028 from 21 December 2026. If you do not opt out and your total income is over £35,000, you’ll receive the Winter Fuel Payment but HMRC will take it back.” State Pension HMRC Winter fuel payment Taxes DWP Benefits Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments