HMRC will send new tax codes out to state pensioners in order to take their winter fuel payment back if they broke the earnings threshold this winter.\u00a0<\/p>\n
Following changes made to the previous, unpopular winter fuel payment<\/a> system which was tied to Pension Credit, this winter is the first time the winter fuel payments have been made with the new \u00a335,000 threshold in place.<\/p>\n The new system for the payments of up to \u00a3300 means that everyone receives a payment, but an estimated two million state pensioners who earned more than the \u00a335,000 threshold are set to be made to pay it back to HMRC<\/a>.<\/p>\n State pensioners<\/a> aged under 80 receive \u00a3200, and those aged 80 or over receive \u00a3300 by default. In HM Revenue and Customs\u2019 guidance published via Gov.uk<\/a>, state pensioners have been told how it will work in practice for those who need to surrender the payment.<\/p>\n State pensioners<\/a> who earned more than \u00a335,000 from any income sources, whether it\u2019s work or savings income, will have to wait for HMRC<\/a> to take back the money via a change in their tax code, unless they normally submit a self-assessment tax return, or are asked to by the taxman.<\/p>\n This means HMRC<\/a> will adjust pensioners\u2019 tax code and send them a letter to tell them what their new tax code is, and recover the payment from their income each month.<\/p>\n Their guide says: \u201cYou\u2019ll need to wait for us to take back the payment, you cannot pay it sooner.<\/p>\n \u201cWe\u2019ll take your payment for the 2025 to 2026 tax year by changing your PAYE tax code for the 2026 to 2027 tax year. This means\u202fyou\u2019ll\u202fpay more tax each month\u202fto pay back\u202fthe full payment that you received in the 2025 to 2026 tax year.<\/p>\n \u201cFor example, for a typical payment of \u00a3200, you\u2019ll pay approximately \u00a317 per month extra in tax.<\/p>\n \u201cYou\u2019ll get a letter or a notification in the HMRC<\/a> app to tell you that we\u2019ve changed your PAYE tax code.\u00a0<\/p>\n