Cookies are small text files that are stored on your computer when you visit a website. They are mainly used as a way of improving the website functionalities or to provide more advanced statistical data.
HMRC issuing pensioners with new tax codes for winter fuel repayments
Fixed quotes for agreed services ››Newsletter issue – March 2026
Some state pensioners will receive updated PAYE tax codes. This is to recover winter fuel payments from those whose total income exceeded £35,000 in the 2025-26 tax year.
The UK Government has introduced a new income-threshold system, replacing the old Pension Credit-linked eligibility rules. Around two million pensioners are expected to repay their winter fuel payment through the tax system. They will be notified by letter or via the HMRC app.
All eligible pensioners still receive the winter fuel payment automatically. If their income is above £35,000, HMRC adjusts their tax code to reclaim £200 for those under 80 and £300 for those aged 80+. Repayments are spread across the tax year via PAYE-roughly £17 per month for a £200 repayment. Pensioners cannot repay in a lump sum; it must be done through tax code adjustments.
HMRC will recover payments during the 2026-27 tax year by altering tax codes. After the tax year ends, HMRC will check whether the correct amount was collected. If not enough was recovered, a tax calculation will be issued for any remaining balance.
Book a Free ConsultationBooking a free initial consultation is a cost-free way of making an initial enquiry to find out if we can help with your tax issue and is all part of the commitment to you.
Request a CallbackWe know you're busy, so if you want us to call you back just leave your details in the form below and we will call you back at a more convenient time.
