HMRC have updated their ‘Paying back the Winter Fuel Payment’ guidance. This will be useful for members who have clients due to make a repayment and are within scope of Making Tax Digital for Income Tax (MTD IT).
If a taxpayer has been paid the Winter Fuel Payment (Pension Age Winter Heating Payment in Scotland), they may be required to repay this if their total income is over £35,000 in a tax year. So:
If income is £35,000 or less, the eligible taxpayer will keep the payment; but
- If income is over £35,000, the payment will be recovered in full by HMRC
HMRC’s guidance reflects the legislative position and links to an online checker that can be used. This will tell the taxpayer whether it will be recovered and how HMRC will do this (via the tax code or through Self-Assessment).
On 27 May 2026, the guidance was updated for two reasons, clarifying issues members have raised:
If the Taxpayer Has Died
The updated guidance confirms that if you are dealing with the estate of someone who died and needs to repay, any amount is usually paid as part of settling the estate. See ‘Dealing with the estate of someone who's died’ for more information.
Via MTD IT
If the taxpayer is within Self-Assessment and will repay this way, the updated guidance confirms there is no facility for making the repayment through MTD IT software if the taxpayer is in scope of this reporting requirement.
However, HMRC will know the amount that has to be repaid and will write to the taxpayer after the final submission for the tax year. Then, the taxpayer will be told how to make the payment using HMRC’s online payment services. The payment should not be made until a letter is received from HMRC.
For Bookkeepers
Two important points that have been raised by members and ICB is pleased to see the guidance has been updated to clarify these.
