{"id":545341,"date":"2025-11-03T02:09:16","date_gmt":"2025-11-03T02:09:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/545341\/"},"modified":"2025-11-03T02:09:16","modified_gmt":"2025-11-03T02:09:16","slug":"hmrc-issues-rules-for-pensioners-who-must-pay-back-300-winter-fuel-payment","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/545341\/","title":{"rendered":"HMRC issues rules for pensioners who must pay back \u00a3300 Winter Fuel Payment"},"content":{"rendered":"

The Department for Work and Pensions is giving out payments worth up to \u00a3300 to millions of pensioners this year – but some will have to pay it backFionnula Hainey<\/strong> National Editor and Steve Bagnall<\/strong><\/a> Breaking News editor<\/p>\n

18:00, 02 Nov 2025<\/p>\n

\"TheThe Department for Work and Pensions is giving out payments worth up to \u00a3300 (Image: GETTY)<\/p>\n

Millions of pensioners are set to receive up to \u00a3300 from the Department for Work and Pensions (DWP) starting in November.<\/p>\n

Winter Fuel Payments will be distributed to individuals born before 22 September 1959, providing financial assistance during the chilliest months when heating costs can escalate.<\/p>\n

This year, however, only pensioners earning less than \u00a335,000 annually will be eligible to retain the payment, which ranges between \u00a3100 and \u00a3300.<\/p>\n

Contrary to previous years where payments were sent exclusively to eligible recipients, the government plans to distribute payments to all pensioners, excluding those who have previously opted out.<\/p>\n

Pensioners exceeding the \u00a335,000 income threshold will have the payment reclaimed by HMRC through a tax payment. There are two ways the tax department will take back the cash, depending on how you usually pay tax, reports the Manchester Evening News<\/a>.<\/p>\n

You can check on the gov.uk website if HMRC<\/a> will take back your Winter Fuel Payment here.<\/a><\/p>\n

Below, we’ve explained who gets to keep the cash and who must pay it back, as well as how HMRC will recover the money.<\/p>\n

Who has to pay back the Winter Fuel Payment?<\/p>\n

Winter Fuel Payments will land in bank accounts during November and December.<\/p>\n

The deadline to opt out of getting the payment has already passed. That means anyone who has not opted out, and was born before September 22, 1959, will get the payment sent automatically to their bank account.<\/p>\n

You can keep the payment as long as your income is below \u00a335,000.<\/p>\n

If your income is above \u00a335,000, HMRC will take the payment back.<\/p>\n

Approximately two million individuals in England and Wales are over State Pension age and have taxable income of above \u00a335,000, according to the government. Taxable income includes earnings and pensions as well as savings interest and taxable state benefits.<\/p>\n

HMRC has confirmed that it will recover the money from people with an income of over \u00a335,000 in one of two ways – either through the PAYE system, or via your Self Assessment tax return.<\/p>\n

The government has clarified that nobody will need to register with HMRC to do this.<\/p>\n

How to pay it back via PAYE<\/p>\n

The majority of pensioners who have to pay back their Winter Fuel Payment will do so through the PAYE system.<\/p>\n

PAYE stands for Pay As You Earn. It the system that HMRC uses to collect income tax and National Insurance contributions in the UK.<\/p>\n

If you are on the PAYE system, the money will be recovered automatically.<\/p>\n

HMRC will change your tax code – which determines how much tax you pay each month – for the 2026\/2027 tax year. The money will be recovered each month straight from your income, starting in April 2026.<\/p>\n

For example, someone who had to pay back a Winter Fuel Payment worth \u00a3200, would see approximately \u00a317 per month deducted via this method.<\/p>\n

How to pay it back if you complete a Self Assessment tax return<\/p>\n

If you usually submit a Self Assessment tax return then you will pay your Winter Fuel Payment back this way instead.<\/p>\n

If you are in this group, you do not need to include the payment in this year\u2019s tax return (2024\/2025).<\/p>\n

People who do their tax return online will see the payment automatically included on their 2025\/2026 tax return, which is due by January 31, 2027. If it is not already included, you should add it yourself.<\/p>\n

People who file a paper Self Assessment tax return will need to include the payment amount in their 2025\/2026 tax return, which is due by October 31, 2026.<\/p>\n

No one needs to register for Self Assessment to pay back their Winter Fuel Payment. This method is only for those who already file a Self Assessment tax return.<\/p>\n

Can you pay Winter Fuel Payment back straight away?<\/p>\n

No. HMRC has confirmed that pensioners above the income threshold will need to wait for HMRC to take back the payment via the above methods. The Winter Fuel Payment can not be paid back any sooner.<\/p>\n

Sign up now for the latest news on the North Wales Live Whatsapp community<\/strong><\/a><\/p>\n

Find out what’s happening near you<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"The Department for Work and Pensions is giving out payments worth up to \u00a3300 to millions of pensioners…\n","protected":false},"author":2,"featured_media":545342,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,2499,16,15,961],"class_list":{"0":"post-545341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-personal-finance","11":"tag-uk","12":"tag-united-kingdom","13":"tag-your-money"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115483336763542606","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/545341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=545341"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/545341\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/545342"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=545341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=545341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=545341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}