HMRC has begun contacting state pensioners whose total income exceeds £35,000 to reclaim Winter Fuel Payments worth between £100 and £300. The repayments will be collected automatically through changes to PAYE tax codes in the 2026-2027 tax year, adding approximately £17 per month to tax bills for a typical £200 payment.
Who is affected and how repayment works
Households that received a Winter Fuel Payment but had a total income above the eligibility threshold of £35,000 must repay the full amount. HMRC is writing to these individuals to inform them of the recovery process. According to HMRC's official guide: “You’ll need to wait for us to take back the payment, you cannot pay it sooner. We’ll take your payment for the 2025 to 2026 tax year by changing your PAYE tax code for the 2026 to 2027 tax year. This means you’ll pay more tax each month to pay back the full payment that you received in the 2025 to 2026 tax year.”
For a typical £200 payment, the extra tax amounts to around £17 per month. HMRC will send a letter or notification via the HMRC app to confirm the tax code change. At the end of the tax year, HMRC will review the total tax paid and, if any amount remains uncollected, will issue a tax calculation.
Scam warning from BBC expert
Rebecca, a BBC Morning Live expert, has warned that the repayment process could be exploited by fraudsters. “Fraudsters often send messages pretending to be from government departments asking for personal details or payment,” she said. HMRC has confirmed that official letters about Winter Fuel Payment repayments will clearly state that no action is required and will never ask for personal or financial information. Recipients are advised to dispose of any message requesting such details or payment.
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.”
