HM Revenue and Customs (HMRC) has begun issuing automatic £200 tax charges for state pensioners under the age of 80 to recover Winter Fuel Payments made during winter 2025. The recovery targets pensioner households with an annual income of £35,000 or more, affecting nearly two million people who must repay payments worth between £100 and £300.
How the Repayment Works
For most affected pensioners, HMRC will recover the payment automatically. The typical Winter Fuel Payment is £200 for pensioners aged under 80 who live alone. Those whose annual income exceeds £35,000 will have the full amount taken back through extra tax charges of approximately £17 per month during the 2026/27 tax year until the debt is cleared. HMRC confirmed: “For a typical Winter Fuel Payment of £200, PAYE customers with income more than £35,000 will pay approximately £17 per month extra in tax during the 2026 to 2027 tax year to recover their payment.”
Tax Code Adjustments from April 2026
HMRC will implement the recovery by changing pensioners’ PAYE tax codes from April 2026. For basic rate taxpayers, HMRC provided an example: a pensioner with total income of £37,710 (comprising £25,737 from a private pension and £11,973 from the State Pension) who received a £200 Winter Fuel Payment will see their Personal Allowance reduced. HMRC explained: “We’ll reduce your tax free amount by £11,973 (your State Pension) and £1,000 (1,000 × 20% = the £200 Winter Fuel Payment you need to repay). Your new tax code is K39. You’ll pay around £17 more tax per month.”
Self Assessment and Regional Variations
Pensioners who file Self Assessment tax returns online will find the repayment pre-populated in their 2025 to 2026 tax return, due by January 31, 2027. They should verify the payment is listed and add it manually if not shown. Those filing paper returns must include it by October 31, 2026. The recovery applies across the UK, including Scotland, where the payment is known as the Pension Age Winter Heating Payment, and Northern Ireland, where payments were made by the Department for Work and Pensions (DWP) on behalf of the Northern Ireland Executive. In all cases, HMRC handles the recovery.
Eligibility and Scam Warnings
The recovery only applies to pensioners who exceeded the £35,000 income threshold and did not opt out of receiving the Winter Fuel Payment last year. HMRC warned pensioners to be vigilant against scams as the recovery process begins. The department advised: “To report a suspicious text claiming to be from HMRC, forward it to 60599. To report a suspicious email, forward it to phishing@hmrc.gov.uk. To report a scam phone call, visit GOV.UK. If you have had money stolen, contact your bank immediately and notify Report Fraud. In Scotland, contact police on 101.”
