State pensioners in England, Wales and Northern Ireland are being urged to make a phone call before Friday, September 18, to avoid facing extra tax charges from HM Revenue and Customs (HMRC). The call is to opt out of receiving this year’s Winter Fuel Payment, worth up to £300, which will be paid to people of State Pension age from November.
Who is affected by the tax change
A Winter Fuel Payment will be issued to those born on or before June 27, 1960, but not everyone will be eligible to keep it. The Department for Work and Pensions (DWP) has confirmed that pensioners with a total individual annual income above £35,000 will have the payment taken back by HMRC.
To recover the money, HMRC will adjust the tax code, increasing the tax deducted from wages, salary or pension. The change will be applied automatically from the start of the new tax year in April 2027, with extra tax charged monthly until the payment is fully recovered.
How much extra tax pensioners may pay
The process is already underway for high-income pensioners who received a Winter Fuel Payment in 2025. According to HMRC, for a typical payment of £200, around £17 extra tax will be deducted per month. If HMRC needs to collect two payments, pensioners will pay more each month — for a £200 payment, this works out at approximately £33 per month.
Explaining the process, the DWP said: “HMRC will collect 2 payments through your tax code at the same time. This means you will pay more tax each month.”
“For example, if HMRC is already collecting your 2025 payment, your tax code will change in January 2027 to start collecting your 2026 payment. You will pay approximately £30 to £33 more tax each month if your Winter Fuel Payment is £200 in both years.”
“If you do not opt out of receiving Winter Fuel Payment, HMRC will change your tax code again in April 2027 to continue collecting your 2026 payment and start collecting your 2027 payment in advance.”
Deadlines and how to opt out
State pensioners can avoid the extra tax charges by opting out of the Winter Fuel Payment altogether, but two deadlines have been set for this month. The earliest is Friday, September 18, 2026, for those opting out via a phone call to the Winter Fuel Payment Centre helpline on 0800 731 0160 by 6pm. The online deadline is slightly later — via the Manage your State Pension service or the opt-out form before 11:59pm on Sunday, September 20, 2026.
Confirming the deadline, the DWP said: “You can choose to opt out of receiving the Winter Fuel Payment. If you do not opt out and your total income is over £35,000, you will receive the Winter Fuel Payment but HMRC will take it back. You cannot return it yourself.”
“To opt out of getting the Winter Fuel Payment you can either: use the Manage your State Pension service before 11:59pm on 20 September 2026 (if you get a State Pension), complete the opt out form before 11:59pm on 20 September 2026, call the helpline before 6pm on 18 September 2026.”
“You’ll need to provide your National Insurance number when you use the online form or call the helpline.”
Opting out will not affect a State Pension, and pensioners do not need to opt out every year, as no payment will be received in future unless they choose to opt back in. Those who wish to opt back in can contact the Winter Fuel Payment Centre, and to receive a payment for winter 2026 to 2027, they must do so before March 31, 2027.
