HMRC confirms £33 monthly tax deductions for some state pensioners

Some state pensioners earning more than £35,000 a year will see around £33 deducted from their monthly tax payments as HM Revenue and Customs (HMRC) recovers Winter Fuel Payments through changes to their tax codes.

The tax authority confirmed it will automatically claw back the benefit from pensioners whose annual income exceeds £35,000 and who do not opt out of receiving the payment.

The recovery applies to Winter Fuel Payments worth between £100 and £300 made during the 2026 to 2027 and 2027 to 2028 tax years.

For pensioners who receive a standard £200 payment, HMRC will increase their monthly tax deductions until the full amount has been repaid.

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Only those with annual earnings above £35,000 who have not opted out of receiving the payment will be affected.

The monthly deductions will increase between the two tax years.

During the 2026 to 2027 tax year, pensioners above the income threshold who receive a typical £200 Winter Fuel Payment will pay around £17 extra each month through their tax code.

That figure will rise to approximately £33 a month during the 2027 to 2028 tax year because HMRC will recover two years' worth of Winter Fuel Payments through a single tax code adjustment.

HMRC said: "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."

From the 2028 to 2029 tax year onwards, HMRC said repayments will be collected during the same tax year in which the Winter Fuel Payment is received.

Pensioners who want to avoid the automatic tax deductions must opt out before the September deadlines.

Those using the online opt-out form must submit it by 11.59pm on September 20, 2026.

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Anyone choosing to contact the Winter Fuel Payment helpline by telephone must do so by 6pm on September 18, 2026.

HMRC has already started recovering Winter Fuel Payments made during the 2025 to 2026 tax year.

The tax authority sent letters and emails in April informing affected pensioners about changes to their tax codes.

People who complete a Self Assessment tax return online should find the Winter Fuel Payment already included in their 2025 to 2026 return.

The deadline for online Self Assessment returns is January 31, 2027, while paper returns must be submitted by October 31, 2026.

The recovery process applies across the UK.

HMRC is also responsible for recovering the payments in Scotland, where the benefit is known as the Pension Age Winter Heating Payment, and in Northern Ireland, where payments are administered by the Department for Work and Pensions on behalf of the Northern Ireland Executive.

As repayments for the 2025 to 2026 tax year continue, HMRC has urged pensioners to remain alert to scams.

Myrtle Lloyd, HMRC's chief customer officer, said: "Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money."

She added: "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."

HMRC said it will never send text messages or emails asking pensioners to repay their Winter Fuel Payments or request bank details through those channels.

Pensioners who receive suspicious communications claiming to be from HMRC are advised to verify them using the official GOV.UK checking tool rather than responding directly.

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