Two million pensioners may have to pay £ 300 for HMRC – here is how they will repay it

Some two million Pensioners Tax may have to be repaid to £ 300 due to changes in winter fuel payment.

From November, the payment is expected to continue to automatically go to people of the age of 66 and to help in heating costs, but there will be a new income cap that sees those who earn more than £ 35,000 per year who are unable to qualify.

New eligibility Rules for winter fuel payment About 7.4 million pensioners will remain eligible for payment after labor Back to decision to ban payment For all but the poorest pensioner.

Payment of £ 200 per domestic, or £ 300 per house where someone above 80 years of age will be made automatically in this winter.

But instead of withdrawing the payment, or claiming back directly from the pensioner Bank accountThe government is ready to pay winter fuel payment to all and recover more money than the threshold through the tax system.

This means that no pensioner will need to take any action to receive payment.

Will the money be taken from bank accounts?

Dan Whitworth, for Financial Journalist BBC Radio 4 The money box said: “That money will not be taken from bank accounts. Instead, HMRC Will recover it through tax. ,

The method of recovering the payment will be through payment as you earn (paye), where the amount is automatically deducted from the customer’s salary or pension income through changes in your tax code. Payments will be paid in monthly installments through 2026 and 2027 tax years starting from April 2026.

For existing self assessment customers, the amount will be added to next year’s tax bill if they file Tax returnHMRC will automatically include payment from its 2025 to 2026 tax returnUntil 31 January 2027.

They should check their winter payment, it is in their online returns and should be included. Those who file a paper self assessment tax return will have to include payment on their 2025 to 2026 tax return by 31 October 2026.

A spokesperson of HMRC said: “Most people who need to return winter fuel payments will do this automatically through their tax code. For those registered for self -evaluation, it will be collected through their tax returns.

“We have clearly explained online guidance how the recovery of payment works, and a calculator so that people can see if they will need to return the payment.”

Mr. Whitworth then said that the process will change again from 2027, as HMRC has planned to collect two payments in that year.

“To recover overped support from a 2026 and in advance for payment of another 2027,” they explained on BBC Radio 4. “Meaning that some people may see a cut of up to £ 600 a year.

“The government says that this approach helps to avoid delay in reclaiming overbetes and ensures that the system remains up to date.”

Those who believe that they will dissolve the £ 35,000 income limit, can choose the option to receive 2026 winter fuel payments, with the instructions available on Gov.uk or MyGov.Scot from 1 April 2026. It is possible to do this by phone or post.