Overview
- HMRC confirmed in July 2026 that from the 2027/28 tax year it will recover Winter Fuel Payments in the same tax year they are paid rather than the following year.
- HMRC began recovering 2025/26 Winter Fuel Payments by changing PAYE tax codes in April 2026, a step that has affected almost two million households in the 2026/27 tax year.
- For PAYE recipients HMRC alters tax codes to create a negative personal allowance or a K code so the payment is recovered across monthly pay packets, with a published example equating to about a £17 monthly hit for a basic‑rate taxpayer.
- Self Assessment taxpayers must include the payment on their return to repay it with paper returns due by 31 October 2026 and online returns due by 31 January 2027, while pensioners can opt out using DWP forms by 11:59pm on 20 September 2026 or by phone by 6pm on 18 September 2026.
- HMRC warns it will never ask for bank details by email or text and urges vigilance against impersonation scams as some pensioners could face combined clawbacks of up to several hundred pounds when the timing change causes two payments to be collected in one tax year.