![\"Tax](\"https:\/\/www.europesays.com\/britain\/wp-content\/uploads\/2026\/09\/tax-demand-letter-coming-through-mail-box-in-door-7105632.jpg\" "\\"Tax")
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HMRC will take monthly payments from pensioners via a tax code change (Image: Getty)<\/p>\n
HM Revenue and Customs (HMRC) has confirmed automatic tax charges of around \u00a333 extra per month for state pensioners with an annual income of more than \u00a335,000. Pensioners who exceed this income threshold and receive a Winter Fuel Payment will be face extra tax charges every month until the money is fully repaid, unless they choose to opt out of the payment<\/a>.<\/p>\n HMRC<\/a> has confirmed that pensioners who get a Winter Fuel Payment<\/a> in the 2026 to 2027 and 2027 to 2028 tax years will have the money clawed back for these two years via a tax code change, resulting in additional tax charges every month<\/a> until the payment has been recovered. Winter Fuel Payments<\/a> are worth between \u00a3100 and \u00a3300 per month, so the extra tax pensioners will have to pay will depend on the amount they received.<\/p>\n According to HMRC, for a typical Winter Fuel Payment of \u00a3200<\/a>, pensioners with earnings above the \u00a335,000 threshold will need to pay around \u00a333 per month extra in tax in the 2027 to 2028 tax year to repay it, with this process to be carried out automatically via a change in tax code.<\/p>\n HMRC has already begun reclaiming payments for the 2025 to 2026 tax year and sent out letters or email notifications to pensioners confirming a change in tax code in April.<\/p>\n For pensioners in Self Assessment who file online, the payment should instead be pre-populated in their 2025 to 2026 tax return, due by January 31, 2027. Pensioners should check the payment is there and in cases where it\u2019s not shown, it should be added manually. Those who file paper returns will need to add it to their tax return by October 31, 2026.<\/p>\n Those affected will pay more tax every month in the current tax year to pay back the Winter Fuel Payment in full. According to HMRC, pensioners with an income above the \u00a335,000 threshold who received a Winter Fuel Payment<\/a> of \u00a3200 will pay about \u00a317 per month extra in tax in the 2026 to 2027 tax year.<\/p>\n This amount will rise to around \u00a333 per month in extra tax in the 2027 to 2028 tax year for a typical Winter Fuel Payment of \u00a3200, unless pensioners opt out of receiving the payment.<\/p>\n HMRC said: “If you receive payments in the 2026 to 2027 and 2027 to 2028 tax years: Unless you opt out of receiving the payment, we\u2019ll collect your payments for the 2 tax years by changing your tax code for the 2027 to 2028 tax year.<\/p>\n “For example, if you receive a payment in each tax year of \u00a3200, we\u2019ll deduct about \u00a333 per month extra in tax in the 2027 to 2028 tax year.<\/p>\n “If you receive a payment for the tax year 2028 to 2029 or onwards, we\u2019ll collect your payment by adjusting your tax code for the tax year in which you receive the payment.”<\/p>\n Pensioners who wish to op out of getting the Winter Fuel Payment to avoid the extra tax charges each month need to either complete an opt out form before 11.59pm on September 20, 2026, or call the Winter Fuel Payment helpline before 6pm on September 18, 2026.<\/p>\n