HMRC has provided an update on the recovery of Winter Fuel Payments through the tax system.
From Winter 2025, the eligibility criteria for Winter Fuel Payments in England, Wales and Northern Ireland and the Pension Age Winter Heating Payment in Scotland will be altered.
If an individual has a total income of over £35,000, HMRC will recover winter payments through the tax system. A charge to income tax will apply that is equal to the full value of the payment received and the tax charge will apply in all parts of the UK.
For people who are PAYE customers, HMRC will automatically collect the payment through a change to the customer’s tax code, unless they already file a tax return. Changing the tax code will mean the Winter Fuel Payment will be deducted from income and paid to HMRC in monthly instalments across the 2026/27 tax year, starting from April 2026.
People who are within Self Assessment do not need to include their payment in this year’s tax return. If they complete an online tax return each year, HMRC will automatically include the payment on their 2025/26 tax return, due by 31 January 2027. If they file a paper Self Assessment return, they will need to include the payment on their 2025/26 return, due by 31 October 2026. No one is required to register for Self Assessment because of the winter payments.
HMRC has also provided a calculator to help customers check if their income will be over £35,000.