HMRC has confirmed that pensioners with an annual income exceeding £35,000 will face additional tax charges of approximately £33 per month to recover Winter Fuel Payments, unless they choose to opt out of receiving the payments. The tax adjustment applies to payments made in the 2026/27 and 2027/28 tax years, with the amount clawed back through changes to tax codes over two years.
How the Tax Recovery Works
According to HMRC, pensioners above the £35,000 income threshold who received a £200 Winter Fuel Payment will pay about £17 per month extra in tax during the 2026/27 tax year. In the 2027/28 tax year, this rises to roughly £33 per month for a typical £200 payment, unless the recipient opts out. For payments from the 2028/29 tax year onwards, HMRC will adjust the tax code in the year the payment is received.
Official Statement from HMRC
HMRC stated: "If you receive payments in the 2026 to 2027 and 2027 to 2028 tax years: Unless you opt out of receiving the payment, we’ll collect your payments for the 2 tax years by changing your tax code for the 2027 to 2028 tax year. For example, if you receive a payment in each tax year of £200, we’ll deduct about £33 per month extra in tax in the 2027 to 2028 tax year."
Warning About Scams
Myrtle Lloyd, HMRC’s chief customer officer, warned: "Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money. I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us."
