HMRC may take it back depending on your personal income.
HMRC confirms £200 tax charge for state pensioners born after 1946
HMRC has confirmed a tax charge for state pensioners under 80 as it claws back the Winter Fuel Allowance. If you have received the Winter Fuel Payment (in Scotland this is the Pension Age Winter Heating Payment) HMRC may take it back depending on your personal income.
If your total income for the tax year is £35,000 or less — you’ll keep your payment – and more than £35,000 — HMRC will take back your payment.
If you live in a household with someone else who has also received a payment, the Labour Party government’s tax arm will look at each person’s individual income separately. For example, if your income is £36,000 and your partner’s income is £22,000, HMRC will take back your payment, but your partner will keep their payment.
READ MORE Petrol and diesel drivers face big ban under Labour with exact year announced
It means HMRC will claw back £200 from state pensioners born after 1946.
You should include any personal income you receive from State Pension, company and personal pensions, money you earn from employment, interest from savings, dividends from company shares, income from a trust and any state benefits that are taxable.
You’ll also need to include any net profits if you’re self-employed and from rental income if you rent out property.
If you have income from a joint source, for example interest from a joint savings account, you should only include your share of the income.
HMRC explains: “You’ll need to wait for us to take back the payment, you cannot pay it sooner as a lump sum.
“We’ll take your payment for the 2025 to 2026 tax year by changing your 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.”
In April 2026, you’ll get a letter or an email notification to tell you that we’ve changed your tax code to take back your Winter Fuel Payment.
This will show as an underpayment. HMRC says: “Once we’ve confirmed your income for the 2025 to 2026 tax year, we’ll check whether you still need to repay this amount.
“If you do not need to repay the Winter Fuel Payment, we’ll update your tax code to remove it. We’ll also ask your pension provider or employer to refund the extra amount, you already paid, through your pension or employment.”
