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Taxing and opting out of Winter Fuel Payments –

In the UK, Winter Fuel Payments (WFP) are typically made to pensioners to help with heating costs. However, starting from winter 2025/26, there are new rules and guidance on how Winter Fuel Payments will be recovered from wealthier pensioners.

Tax clawback for Higher Incomes

  • If your taxable income exceeds £35,000, HMRC will claw back the WFP through the tax system.
  • This applies even if your income exceeds the threshold by just £1.
  • Recovery is done via:
    • PAYE tax code adjustment for non–self-assessment taxpayers.
    • Self-assessment tax return inclusion for those who file one.

Opting Out of the Payment

  • You can opt out of receiving the WFP to avoid the clawback process.
  • The deadline to opt out for winter 2025/26 is 15 September 2025.
  • You must live in England, Wales, or Northern Ireland to opt out online.

You can find out more information, and opt out on the following link:

Winter Fuel Payment: Report a change or opt out – GOV.UK

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