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HMRC has confirmed a £300 tax charge for state pensioners for the new tax year which started in April.

HM Revenue and Customs has set out how it will take Winter Fuel Payments of up to £300 back from state pensioners who exceeded the income threshold and will need to repay it to the tax office.

The Winter Fuel Payment is £200 for state pensioners under 80 and £300 for those aged over 80, and following a u-turn away from the unpopular Pension Credit system, is now paid to all state pensioners regardless of income.

Then, those earning over £35,000 in a single tax year are made to repay the payment to HMRC in tax.

Now, HMRC has confirmed how it will recover the £300 via a tax charge for those who already submit self-assessment tax returns.

It said: "Pensioners who received Winter Fuel Payments (Pension Age Winter Heating Payments in Scotland) from the Government in 2025 will need to repay those payments if their total income was more than £35,000 in the 2025 to 2026 tax year. Pensioners who are already Self Assessment taxpayers will have these payments recovered via their 2025 to 2026 Self Assessment tax return.

"Where possible, HMRC will include the charge automatically in online tax returns. It is important to check that HMRC has entered the correct amount of the Winter Fuel Payment on the return, but people can enter it themselves if they need to. Those filing paper tax returns will need to include it on their return, which is due by 31 October 2026."

For those who don't do self-assessment, HMRC will take the money back via a tax code change.

It said: "You'll need to wait for us to take back the payment, you cannot pay it sooner as a lump sum.

"We'll take your payment for the 2025 to 2026 tax year by changing your tax code for the 2026 to 2027 tax year. This means you'll pay more tax each month to pay back the full payment that you received in the 2025 to 2026 tax year.

"For example, for a typical payment of £200, you'll pay about £17 per month extra in tax."

It added: "If you do not need to repay the Winter Fuel Payment, we'll update your tax code to remove it. We'll also ask your pension provider or employer to refund the extra amount, you already paid, through your pension or employment.

"If we're unable to collect the full amount due during the tax year, in your tax code, we'll send you a tax calculation."

HMRC has also warned pensioners to be wary of scammers taking advantage of winter fuel payment repayment periods.

Myrtle Lloyd, HMRC's chief customer officer, said: "Criminals are great pretenders and often use fake letters, emails, calls and texts to impersonate HMRC and trick people into giving them money.

"I'd encourage anyone who's unsure to use our online tool at gov.uk to check whether and how their payment will be recovered."