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HMRC points main Winter Fuel fee claw again for one group of pensioners

HMRC has confirmed that state pensioners earning over £35,000 a year will face monthly tax deductions of £33 as the taxman recovers Winter Fuel Payments through automatic tax code changes

HM Revenue and Customs Tax demand letter, coins and calculator

HMRC is clawing back Winter Fuel Payments(Image: Getty)

HMRC has confirmed that a group of state pensioners will see monthly tax deductions of £33. This comes as the government’s official tax, payment and customs department continues to recoup Winter Fuel Payments through changes to tax codes.

State pensioners with an annual income exceeding £35,000 will be subject to these tax deductions as HMRC retrieves the benefit from those who do not opt out of receiving it. This applies to Winter Fuel Payments ranging from £100 to £300 made during the 2026/2027 and 2027/2028 tax years. Those who receive the standard £200 payment will see their monthly tax deductions rise until the full amount is repaid.

As reported by GB News, all state pensioners automatically receive Winter Fuel Payments. However, if their total income surpasses the £35,000 threshold, HMRC will reclaim the full value via the tax system.If your earnings are £35,001 or more, you must repay the entire amount. The threshold is strictly based on personal income, so if one person earns £40,000 and their partner £20,000, only the individual earning £40,000 will have their payment reclaimed.

Struggling With Bills

Some pensioners will be hit by monthly tax deductions(Image: Getty)

State pensioners don’t need to get in touch with HMRC or manually transfer money to repay it. The department will automatically adjust your tax code, with a deduction of £17 for the typical £200 Winter Fuel Payment during the 2026/2027 tax year.

However, this amount will increase to £33 per month during the 2027/2028 tax year as HMRC will recoup two years’ worth of payments through a single adjustment to your tax code.

From the 2028/2029 tax year onwards, repayments will be collected in the same tax year that the payment is received.

Bank notes and a letter from HMRC

The announcement will come as good news to many(Image: Alamy/PA)

HMRC explained: “If you receive payments in the 2026 to 2027 and 2027 to 2028 tax years: Unless you opt out of receiving the payment, we’ll collect your payments for the 2 tax years by changing your tax code for the 2027 to 2028 tax year.”

Myrtle Lloyd, HMRC’s Chief Customer Officer, warned: “Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.”

She further advised: “I’d encourage anyone who’s unsure to use our online tool at GOV.UK to check whether and how their payment will be recovered – there’s no need to call us.”

An HMRC letter

Pensioners have until 11.59pm on 20 September, 2026, to make this decision.(Image: Getty)

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State pensioners can sidestep automatic tax deductions by choosing not to receive the Winter Fuel Payment.

They have until 11.59pm on 20 September, 2026, to make this decision.