Scottish pensioners with a total income above £35,000 may have their Pension Age Winter Heating Payment recovered through the tax system when they file their Self Assessment return. HM Revenue and Customs (HMRC) has confirmed that details of the devolved Scottish payment will be automatically added to 2025/26 online Self Assessment returns where possible, but people should check their return and add the payment manually if it is not shown.
Pension Age Winter Heating Payment has replaced Winter Fuel Payment in Scotland and is administered by Social Security Scotland. Payments of up to £316.70 will be issued automatically this winter to pensioners born on or before June 27, 1960.
Recovery for income above £35,000
Those with a total income above £35,000 will have the money recovered through the tax system. This means people completing Self Assessment will need to repay the amount through their tax bill.
HMRC confirmed the new arrangements as it announced improvements to its Self Assessment registration service ahead of key tax return deadlines. It said: "Customers who received the Winter Fuel Payment, or Pension Age Winter Heating Payments in Scotland, and are in Self Assessment, will see the Winter Fuel Payment pre-populated in their 2025 to 2026 online tax return where possible."
It added: "Customers should check and add it manually if it is not shown." People filing a paper Self Assessment return will need to add the payment themselves.
Deadlines and opt-out option
The deadline for submitting a paper tax return for the 2025/26 tax year is October 31, 2026, while online returns and any tax owed must be submitted and paid by January 31, 2027. The recovery arrangement applies where someone's total income is more than £35,000.
Pensioners who do not normally complete Self Assessment will not need to start filing a tax return simply because their income is above the threshold. The UK Government has separate arrangements for recovering Winter Fuel Payments from people who pay tax through PAYE.
Eligible pensioners in Scotland who do not want to receive Pension Age Winter Heating Payment can opt out before it is paid. The Scottish Government has set a deadline of midday on October 19, 2026 for people who want to opt out. Full details on opting out can be found on MYGOV.SCOT.
This may be an option for pensioners with income above £35,000 who know the payment would subsequently be recovered through the tax system. The Scottish payment replaced the UK Government's Winter Fuel Payment following the devolution of responsibility for the benefit. Eligibility is linked to State Pension age, although the amount someone receives can depend on their circumstances.
New HMRC Self Assessment service
The guidance comes as HMRC launches an improved online registration system for people who need to complete Self Assessment. More than 640,000 people registered for Self Assessment in the 12 months to March 31, 2026.
People who need to submit a tax return for the first time for 2025/26 must register with HMRC by October 5, 2026. The revamped service includes forms with some personal information already filled in, the ability to save an application and return to it later, and confirmation by email or text once registration is complete.
Newly registered taxpayers will also receive their Unique Taxpayer Reference (UTR) in their online account within 72 hours, rather than potentially waiting up to 15 days for it to arrive through the post. Myrtle Lloyd, HMRC's Chief Customer Officer, said: "Anyone new to Self Assessment may not realise they need to register before they can submit their tax return. Registering is quicker and easier than ever. And if you register now, you'll get your Unique Taxpayer Reference so you can start completing your return with plenty of time before the 31 January deadline."
