Tax Code Changes for Winter Fuel Payment Recovery
From April 2026 you may receive a tax code notice from HMRC with an adjustment for a Winter Fuel Payment
The following guidance explains why this might occur and whether this may apply to you:
Why is this change happening?
HMRC have changed the eligibility for the Winter Fuel Payment and will now recover the payment if you earn over £35,000.
When will you be notified?
In April 2026 HMRC will be sending out notifications if you have had a change for tax code for 2026/27 to account for this.
What will you repay?
You will repay your 2025 Winter Fuel Payment in your 2026/27 tax coding. A charge to income tax will apply for the full value of the payment you received.
What if you file a Self-Assessment tax return?
You will need to include your 2025 Winter Fuel Payment on your 2025/26 tax return.
What to do if you are an employer?
Apply any tax code changes as normal.
Can you opt out of receiving the Winter Fuel Payment?
Yes, if you expect your income to be over £35,000 you can opt out from April 2026.