HMRC has confirmed that state pensioners under the age of 80 will face an additional £200 tax charge in 2026. This charge is linked to the recovery of Winter Fuel Payments made by the Department for Work and Pensions (DWP).
How the Clawback Works
According to HMRC, for the 2026-27 tax year, a typical Winter Fuel Payment of £200 will result in monthly deductions of approximately £17 through the PAYE system. These deductions apply to pensioners whose annual income exceeds £35,000.
In the following tax year, 2027-28, deductions will temporarily rise to about £33 per month for a typical £200 payment. HMRC explains this increase is due to the simultaneous recovery of both the 2026 and 2027 Winter Fuel Payments during that year.
From the 2028-29 tax year onwards, monthly deductions will revert to approximately £17.
Payments by Age Group
Younger state pensioners, born after 1946, currently receive a £200 Winter Fuel Payment. For retirees aged over 80, the payment is increased by £100, making it £300. However, the clawback applies to the standard £200 portion for those under 80.
Self Assessment Requirements
The Winter Fuel Payment should be pre-populated for pensioners who file their 2025-26 tax return online via Self Assessment. The online filing deadline is January 31, 2027. If the payment does not appear automatically, pensioners must enter it manually.
For those who file paper returns, the payment must be added to the tax return by October 31, 2026.
Timeline and Scam Warning
The extra charges began in April, with households receiving a letter or email from HMRC confirming changes to their tax code for Winter Fuel Payment recovery. As a result, pensioners will pay more tax each month until the 2025-26 payment is fully repaid.
Automatic recovery applies across the whole of the UK for pensioners with annual incomes over £35,000.
HMRC has issued a warning about potential scams, reminding pensioners that it will never ask for bank details or contact them by text or email to demand repayment.
