HMRC has confirmed a £17 a month tax charge for state pensioners earning £22,453 or more from sources including the new state pension. Under the Winter Fuel Payment rules, HMRC will clawback the £200 from new state pensioners born after 1951 (if they are men) or 1953 (if they are women).
Who is affected?
If your total income for the tax year is £35,000 or less, you will keep your payment. However, if you earn more than £35,000, HMRC will take back the £200 payment. The new state pension is £12,547, meaning pensioners can earn another £22,453 without being liable for the clawback. Income counted includes State Pension, company and personal pensions, earnings from employment, interest from savings, dividends from company shares, income from a trust, and any taxable state benefits.
How HMRC will recover the payment
HMRC explains that pensioners cannot pay the amount sooner as a lump sum; they must wait for HMRC to adjust their tax code. The recovery will occur in the 2026 to 2027 tax year by changing the tax code for the 2025 to 2026 tax year. This results in higher monthly tax payments of about £17 per month for a typical £200 payment.
In April 2026, pensioners will receive a letter or email notification confirming the tax code change, which will show as an underpayment. Once HMRC confirms the income for the 2025 to 2026 tax year, they will check if repayment is still required. If not, the tax code will be updated and any extra amounts paid will be refunded through the pension or employer. If the full amount cannot be collected via tax code, HMRC will send a tax calculation.
Scottish taxpayers will see slightly different deduction amounts based on Scottish tax rates.
