HM Revenue and Customs (HMRC) has issued crucial new guidance for pensioners regarding the tax treatment of this year's Winter Fuel Payment, confirming a significant delay for those required to repay it.
Key Tax Deadline Shift for Higher Earners
The tax authority has stated that pensioners do not need to include their 2025 Winter Fuel Payment on their tax return for the 2024 to 2025 tax year. This applies even to those whose income exceeds the £35,000 threshold, which triggers a clawback of the benefit.
Instead, any repayment will be collected in the following tax cycle. Payments received in Autumn 2025 will be recovered via the 2025 to 2026 tax return, which is due by the deadline of 31 January 2027. This gives affected individuals additional time to prepare for the repayment.
Who is Affected and How Repayment Works
The guidance is vital for pensioner households in England and Wales who receive the Winter Fuel Payment, and for Scots who get the equivalent Pension Age Winter Heating Payment. The Department for Work and Pensions (DWP) confirmed that the vast majority of the 9 million eligible households should have received their lump sum by November or December 2025.
The amount paid ranges from £100 to £300, depending on age and circumstances during the qualifying week of 15th to 21st September 2025. For those with an annual income above £35,000, HMRC will reclaim the payment. This will be done either through the Self Assessment process or via an adjustment to the individual's PAYE tax code.
Payment Details and Eligibility
To qualify for the Winter Fuel Payment, individuals must have been born before 22nd September 1959. The specific amounts for the 2025/26 period are as follows:
- Pensioners in residential care: £101.70
- Those aged between 66 and 79: £203.40
- Pensioners aged 80 or above: £305.10
The DWP is continuing to process payments, and anyone who believes they are owed money has until the end of March 2026 to lodge a claim directly with the department.
Checking Your Status and Next Steps
For pensioners uncertain about whether they will need to repay the benefit, HMRC provides an online checking tool on the GOV.UK website. This resource can help individuals determine their liability ahead of the January 2027 deadline.
This updated guidance provides much-needed clarity, ensuring pensioners complete their current tax returns correctly while understanding their future obligations. It underscores the importance for higher-earning pensioners to plan for the eventual clawback of the tax-free benefit.
