The Winter Fuel Payment provides valuable support towards heating costs during the winter months. For the 2025/26 tax year, eligible households may receive a payment of £200.
However, if you received a Winter Fuel Payment and your total income was more than £35,000, you may need to repay the full amount to HMRC.
How will the payment be recovered?
How HMRC recovers the payment will depend on how you pay your tax.
If you receive a salary or pension through PAYE
If you are employed or receive a pension through PAYE, HMRC will generally recover the Winter Fuel Payment by adjusting your tax code.
This means you will pay a little more tax each month until the amount owed has been collected.
If you complete a Self-Assessment Tax Return
If you complete a Self-Assessment Tax Return, the Winter Fuel Payment will need to be included on your tax return.
If Armstrongs completes your tax return, please let us know if you received a Winter Fuel Payment. We can then review your circumstances and consider whether the payment needs to be included when preparing your return.
Do you need to repay your Winter Fuel Payment?
If you are unsure whether the £35,000 income threshold applies to you, or whether you need to repay your Winter Fuel Payment, we recommend seeking professional advice.
For more information, please see the latest guidance from HMRC on paying back the Winter Fuel Payment.
If you are unsure whether the above applies to you, please speak to a member of the Armstrongs team, who will be happy to help.
