From winter 2025, the eligibility criteria for Winter Fuel Payments in England, Wales and Northern Ireland, and the Pension Age Winter Heating Payment in Scotland, will be expanded so that more pensioners are eligible.
If an individual has a total income of over £35,000, HMRC will recover winter payments through the tax system. A charge to income tax will apply that is equal to the full value of the payment received. The tax charge will apply in all parts of the UK.
For PAYE customers, HMRC will automatically collect the payment through a change to the customer’s tax code, unless they already file a Self Assessment tax return. Changing the tax code will mean their winter payment will be deducted from their income and paid to HMRC in monthly instalments across the 2026 to 2027 tax year, starting from April 2026.
For Self Assessment customers, no one needs to include their payment in this year’s tax return. If they complete an online tax return each year, where possible HMRC will automatically include the payment on their 2025 to 2026 tax return, due by 31 January 2027. Customers should check their winter payment is on their online return and include it themselves if not. If they file a paper Self Assessment tax return, they will need to include the payment on their 2025 to 2026 tax return, due by 31 October 2026. No one needs to register for Self Assessment because of the winter payments.
Further guidance on Winter Fuel Payments, Pension Age Winter Heating Payment and understanding tax and your pension is available.
HMRC has also provided a calculator to help customers check if their income will be over £35,000.
