HMRC sending new tax codes to state pensioners to take Winter Fuel Payment back

HMRC sending new tax codes to state pensioners to take Winter Fuel Payment back HMRC is sending new tax codes out to state pensioners to take their winter fuel payment back. Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Alex Evans , Deputy Audience Editor 15:48, Sat, Oct 24, 2026 HMRC is sending new tax codes to state pensioners (Image: Getty) HMRC will send new tax codes out to state pensioners in order to take their winter fuel payment back if they break the earnings threshold this winter. Following changes made to the previous, unpopular winter fuel payment system, which was tied to Pension Credit, winter fuel payments have since been made with the new £35,000 earnings threshold in place. Article continues below ADVERTISEMENT The new system for the payments of between £200 and £300 means that everyone receives a payment, but an estimated two million state pensioners who earned more than the £35,000 threshold are set to be made to pay it back to HMRC . State pensioners aged under 80 receive £200, and those aged 80 or over receive £300 by default. In HM Revenue and Customs’ guidance published via Gov.uk , state pensioners have been told how it will work in practice for those who need to surrender the payment. 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 . Tax-free Personal Allowance will rise to £20,070 due to HMRC rule Older state pensioners handed £438 'additional' boost - started in April State pensioners who earn more than £35,000 from any income sources, whether it’s work or savings income, will have to wait for HMRC to take back the money via a change in their tax code, unless they normally submit a self-assessment tax return, or are asked to by the taxman. Article continues below ADVERTISEMENT This means HMRC will adjust pensioners’ tax code and send them a letter to tell them what their new tax code is, and recover the payment from their income each month. Article continues below ADVERTISEMENT Their guide says: "If your total income is over £35,000, HM Revenue and Customs (HMRC) will take your Winter Fuel Payment back. "Your partner’s income does not count towards your total income. "You can check if your income is over the threshold. You’ll need to provide the total amount of income you expect to receive in the tax year before any deductions. "HMRC will usually collect the amount you owe through your tax code. If you complete a Self Assessment tax return, you’ll pay it through your tax bill instead. "If HMRC changes your tax code to pay back your Winter Fuel Payment, they’ll contact you by email or post. This means the tax deducted from your wages, salary or pension will increase. "If HMRC are unable to collect the full amount during the tax year they’ll send you a tax calculation letter ." It adds: "If HMRC is already collecting your 2025 payment, your tax code will change in January 2027 to start collecting your 2026 payment. You will pay approximately £30 to £33 more tax each month if your Winter Fuel Payment is £200 in both years." An HMRC spokesperson said: “The majority of people who need to pay back a Winter Fuel Payment will do so automatically via their tax code. For those already registered for Self Assessment, it will be collected via their tax return. “We’ve provided online guidance clearly explaining how recovery of payments works, and a calculator so people can see if they’ll need to pay back the payment.” State Pension HMRC Winter fuel payment Taxes Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments