Winter Fuel Payment
If your income is over £35,000
If your total income is over £35,000, HM Revenue and Customs (HMRC) will take your Winter Fuel Payment back.
Your partner’s income does not count towards your total income.
You can check if your income is over the threshold. You’ll need to provide the total amount of income you expect to receive in the tax year before any deductions.
HMRC will usually collect the amount you owe through your tax code. If you complete a Self Assessment tax return, you’ll pay it through your tax bill instead.
You can opt out of receiving Winter Fuel Payment if your income is over £35,000 or you do not want to receive it.
If HMRC changes your tax code
If HMRC changes your tax code to pay back your Winter Fuel Payment, they’ll contact you by email or post. This means the tax deducted from your wages, salary or pension will increase.
If HMRC are unable to collect the full amount during the tax year they’ll send you a tax calculation letter.
If HMRC needs to collect 2 payments
HMRC will collect 2 payments through your tax code at the same time. This means you will pay more tax each month.
Example
If HMRC is already collecting your 2025 payment, your tax code will change in January 2027 to start collecting your 2026 payment. You will pay approximately £30 to £33 more tax each month if your Winter Fuel Payment is £200 in both years.
If you do not opt out of receiving Winter Fuel Payment, HMRC will change your tax code again in April 2027 to continue collecting your 2026 payment and start collecting your 2027 payment in advance.
If you complete a Self Assessment tax return
You must include your Winter Fuel Payment on your tax return each year you get it.
If you file tax returns online, HMRC will usually include the amount automatically. It will show as the ‘Winter Fuel Payment charge’ and will be included in your tax calculation.
If you use Making Tax Digital for Income Tax
You cannot pay back your Winter Fuel Payment when you submit your tax return using your compatible software.
After you’ve submitted your tax return, HMRC will write to you confirming:
- how much you need to pay
- how and when to make the payment using HMRC’s online payment services
You should wait for HMRC to contact you before trying to make the payment.
If you’re dealing with the estate of someone who has died
If the person who died received a Winter Fuel Payment and their income was over £35,000, the payment is usually paid back when you’re settling their estate. Find out how to settle debts and taxes for someone who has died.