Key takeaways

  • HMRC recovers the full Winter Fuel Payment from anyone whose own total income for the tax year is over £35,000. A partner's income does not count.
  • If you are only in PAYE, HMRC collects the 2025 payment through your 2026 to 2027 tax code, about £17 a month for a £200 payment.
  • If you file Self Assessment, the 2025 payment goes on your 2025 to 2026 return, due online by 31 January 2027, as a Winter Fuel Payment charge.
  • From January 2027 some PAYE pensioners will pay back two winters at once, about £30 to £33 a month for two £200 payments.
  • The winter 2026 to 2027 payment goes to people born on or before 27 June 1960 and is mostly paid in November or December 2026.
  • The opt-out for 2026 to 2027 has closed. You can opt out of the 2027 to 2028 payment from 21 December 2026.
  • People getting Pension Credit, Universal Credit or certain other benefits in the qualifying week do not pay the charge, whatever their income.

HMRC claws back the Winter Fuel Payment from pensioners whose own total income for the tax year is over £35,000. It does this through your PAYE tax code, or through your Self Assessment return if you file one. The charge equals the full payment, usually £200 or £300, and it applies across the UK.

Who has to pay the Winter Fuel Payment back?

You pay it back if you received a Winter Fuel Payment and your total income for that tax year is over £35,000. HMRC’s income over £35,000 page says your partner’s income does not count, so each person is tested on their own income.

The test uses total income as defined in section 23 of the Income Tax Act 2007, before the Personal Allowance is taken off. The policy paper published on 26 November 2025 says about 2.2 million people are affected.

You do not pay the charge if you got Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance in the qualifying week. In Scotland the charge also covers the Pension Age Winter Heating Payment.

How much does HMRC take back?

HMRC takes back the whole payment. There is no taper, so £35,001 of income means the full amount is recovered. The winter 2026 to 2027 amounts on GOV.UK are:

Your situationBorn 28 Sep 1946 to 27 Jun 1960Born before 28 Sep 1946
Living alone£200£300
Living with another eligible person£100£150 or £200
In a care home£100£150

The qualifying week for winter 2026 to 2027 is 21 to 27 September 2026. The 2025 payment went to people born on or before 21 September 1959, with a qualifying week from 15 September 2025.

How HMRC recovers it through your tax code

If you are not in Self Assessment, HMRC changes your tax code. HMRC’s PAYE Manual at PAYE14020 says it adjusts the code automatically to recover the full amount. You do not need to contact HMRC.

  • 2025 payment: collected through your 2026 to 2027 tax code from April 2026. For a £200 payment that is about £17 a month.
  • 2026 payment: HMRC’s example says your code changes again in January 2027 to start collecting it. With two £200 payments, you pay about £30 to £33 a month extra.
  • From April 2027: if you have not opted out, the code changes again to finish collecting 2026 and start collecting 2027 in advance.

If HMRC cannot collect the full amount through your code in the year, it sends you a tax calculation letter. Check our guide to tax codes if your new code looks wrong.

How it works in Self Assessment

If you file a Self Assessment return, the charge goes on the return for the year you got the payment. For the 2025 payment that is the 2025 to 2026 return, due online by 31 January 2027. The paper deadline of 31 October 2026 has passed.

  1. Log in and open your 2025 to 2026 return.
  2. Look for the “Winter Fuel Payment charge” in the tax calculation. HMRC usually adds it automatically for online filers.
  3. If it is missing and your income is over £35,000, add it yourself.
  4. Pay it with the rest of your balancing payment by 31 January 2027.

HMRC does not adjust Self Assessment customers’ tax codes for the charge. Nobody has to register for Self Assessment just because of it. HMRC’s guidance does not say whether the charge feeds into payments on account, so check your calculation. See our Self Assessment deadlines and paying through your tax code guides.

Making Tax Digital for Income Tax. You cannot repay the charge through MTD software. HMRC writes after you submit to tell you how much to pay and when, so wait for that letter.

Which applies to you

  • Income £35,000 or less: keep the payment. Nothing to do.
  • Over £35,000, PAYE only: HMRC changes your tax code. Check each coding notice.
  • Over £35,000, in Self Assessment: check the charge is on your 2025 to 2026 return.
  • Over £35,000, filing through MTD: wait for HMRC’s letter after you submit.
  • On Pension Credit or Universal Credit in the qualifying week: no charge.
  • Acting for an estate: the payment is usually repaid when the estate is settled.

Can you opt out?

Yes, but not for this winter. The opt-out page says the 2026 to 2027 opt-out has closed, and you can opt out of the 2027 to 2028 payment from 21 December 2026. If you opted out and now expect income of £35,000 or less, contact the Winter Fuel Payment Centre on 0800 731 0160 before 31 March 2027 to get this winter’s payment.

What to do now

  1. Estimate your own total income for 2025 to 2026 and 2026 to 2027.
  2. Check your latest tax code notice in your HMRC online account.
  3. If you file Self Assessment, check the charge before 31 January 2027.
  4. Ignore texts or calls asking you to pay a Winter Fuel Payment charge by link. HMRC collects it through your code or return. See HMRC scam calls and texts.

The charge sits in clause 55 and Schedule 10 of the Finance (No. 2) Bill 2025 to 2026. We have not confirmed the final Finance Act section numbers.

Frequently asked questions

What income counts for the £35,000 Winter Fuel Payment test?

Your own total income for the tax year, before the Personal Allowance is deducted. Your partner’s income does not count.

How much extra tax will I pay through my tax code?

For a £200 payment, about £17 a month in 2026 to 2027. If HMRC collects two winters at once from January 2027, it is about £30 to £33 a month.

Do I need to register for Self Assessment to pay it back?

No. HMRC collects it through your tax code if you are not already in Self Assessment.

Where does the Winter Fuel Payment go on my tax return?

It appears as a Winter Fuel Payment charge in the tax calculation on your 2025 to 2026 return. HMRC usually adds it for online filers, but add it yourself if it is missing.

Can I still opt out of the 2026 to 2027 payment?

No, that window has closed. You can opt out of the 2027 to 2028 payment from 21 December 2026.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.