Pensioners are reminded that the deadline to decline the Winter Fuel Payment, valued at up to £300, is September 15. The payment is being issued this year to pensioners born before September 22, 1959. However, if your annual income exceeds £35,000, HMRC will automatically reclaim the Winter Fuel Payment.
Recovery of the payment for those earning over £35,000 will be facilitated through PAYE or self-assessment return. The income eligibility is assessed individually, meaning if one partner earns £30,000 and the other £40,000, only one person will retain their share of the payment.
Individuals with incomes surpassing £35,000 have the option to opt out of receiving the Winter Fuel Payment. This can be done by completing a form on the GOV.UK website or by reaching out to the Winter Fuel Payment Centre via post or phone.
It is advised to act promptly as the deadline for opting out is September 15, 2025. Failure to opt out may result in automatic deduction of the payment from the tax code or tax return for the following years. The Winter Fuel Payments are administered by the Department for Work and Pensions (DWP).
To check if HMRC will retrieve your Winter Fuel Payment, visit the GOV.UK webpage. Katherine Ford, ICAEW Technical Manager, Tax, emphasized the importance of pensioners contacting HMRC before the deadline if their total income exceeds £35,000.
For those eligible to claim Winter Fuel Payments, the application process begins on September 15 by post or October 15 by phone. The payments are valued at £200 for qualifying households and £300 for households with individuals aged over 80.
Eligibility criteria include age at the end of the qualifying week, with exceptions for hospitalization, imprisonment, or residing in care homes during specific periods. In Scotland, a new Pension Age Winter Heating Payment has replaced the Winter Fuel Payment.