If you received the winter fuel payment last year, depending on your income, you may have to repay it to HMRC. The threshold for this is an annual income of £35,000 or more.
If you receive income through PAYE, HMRC will change your PAYE code to take it back throughout the tax year. If you receive your income through the self-assessment criteria, it will need to be indicated on your tax return that you have received the payment, it will then be added to your self-assessment tax bill for the year.
It is too late now to opt out of the 2025/26 winter fuel payment, but you can opt out of the payment for 2026/27 from 1st April 2026, if you estimate your income for 2026/27 to be higher than £35,000, but we wouldn’t advise this unless you are certain.
If you had already opted out for the payment in 2025/26 and you realise that your income will be lower than expected, you can opt back in before 31st March 2026.
If you would like to find out how HMRC will take your re-payment, follow this link and go through the questions.
You can find out about opting out of receiving the winter fuel payment and opting back in by following this link.
If you need any tax advice in Milton Keynes give a call to the team at Holmes Accountancy on 01908 315716 or contact us here.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
Share this post: