Update on Winter Fuel Payments Recovery through the Tax System
- Aamer Amin
- Oct 15
- 2 min read
From Winter 2025, the Government will expand the eligibility criteria for Winter Fuel Payments in England, Wales, and Northern Ireland, and for the Pension Age Winter Heating Payment in Scotland — meaning more pensioners will qualify for this seasonal support.
However, from April 2026, new tax rules will apply to higher-income pensioners.
Key Change: Recovery Through the Tax System
If an individual’s total annual income exceeds £35,000, HMRC will recover the full value of their Winter Fuel Payment through the tax system.
This will be treated as a charge to income tax equal to the payment amount received and applies across all parts of the UK.
How This Will Work for PAYE taxpayers
HMRC will automatically adjust the individual’s tax code so the payment is recovered through their salary or pension in monthly instalments over the 2026–27 tax year (starting April 2026).There is no need to take any action unless you already complete a Self Assessment tax return.
For Self Assessment taxpayers
There is no need to report the payment on the 2024–25 tax return. HMRC will automatically include the Winter Fuel Payment on the 2025–26 tax return:
Online filers: due 31 January 2027
Paper filers: due 31 October 2026
Importantly, no one is required to register for Self Assessment solely because of this payment.
HMRC Guidance and Tools
HMRC has updated several GOV.UK pages for further details:
A calculator is also available on GOV.UK to help individuals check if their income will trigger repayment through the tax system.
___________________________________________________________________________________________
Our Advice
At Amin & Co Accountants, we recommend pensioners and higher-income individuals review their expected income for 2025–26 to understand if this change may affect them.
If you would like personal advice on how this could impact your tax position, or help with Self Assessment, please contact our team:
📞 0161 224 3510
Expert tax advice you can trust – Amin & Co Accountants, Manchester.
Comments