The Winter Fuel Payment – a new income tax charge!

If you are in receipt of the State Pension, then there is every chance that you are also receiving the Winter Fuel Payment (WFP).  This tends to be paid directly into your bank account in November each year and can vary depending on your circumstances (typically £100 – £300 per household).

From 6 April 2025, if your total income in each tax year is £35,000 or more, then sadly the whole of the WFP is recouped by HMRC as part of your income tax liability.  We will therefore be asking you to confirm how much WFP you have received, in order that we can correctly assess your income tax bill.

If you do not complete a self-assessment tax return, then HM Revenue & Customs will pick up the WFP repayment through your PAYE coding instead.

If your income is always in excess of £35,000 per annum, then you can make the decision to opt out of receiving the WFP altogether.  There are a variety of methods of doing this including phoning the WFP centre on 0800 731 0160 (have your National Insurance number to hand).  Please see the gov.uk website for further details (Opt out of the Winter Fuel Payment).