Changes to the Winter Fuel Payment mean that some higher-income pensioners will have to repay the benefit through the tax system.
Who is affected?
Individuals with total income above £35,000 may be required to repay their Winter Fuel Payment or Pension Age Winter Heating Payment.
How will repayment work?
- PAYE taxpayers may see adjustments through their tax code.
- Self Assessment taxpayers may need to repay the amount through their tax return.
Why this matters
Many people may not realise that repayment is now linked to income levels. This could come as a surprise when reviewing tax codes or completing tax returns.
What should you do?
If your income is likely to exceed £35,000, we can help you understand whether repayment will apply and how it will affect your overall tax position.