HMRC to charge £33 extra per month to state pensioners on income higher than £35k
HM Revenue and Customs confirms automatic deductions will be made after a tax code change
State pensioners with an annual income of more than £35,000 will be charged £33 extra per month in tax, His Majesty's Revenue and Customs (HMRC) has confirmed.
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HMRC will add on the £33 to those who exceed the £35k income threshold and also receive the Winter Fuel Payment, AOL has reported, with exemptions for those who opt out of the Winter Fuel Payment.
The news follows previous chancellor Rachel Reeves's move to limit the annual payout to up to £300 for people who claim pension credit, in a bid to raise £1.5 billion and shore up the creaking public finances.
HMRC has now said that money will be taken back from the 2026 to 2027 and 2027 to 2028 tax years via a tax code change for those who are affected.
It is understood that those affected will not need to do anything and that the tax will be paid every month until it is recovered.
HMRC, in a statement reprinted by AOL, said: "If you receive payments in the 2026 to 2027 and 2027 to 2028 tax years, unless you opt out of receiving the payment, we'll collect your payments for the two tax years by changing your tax code for the 2027 to 2028 tax year.
"For example, if you receive a payment in each tax year of £200, we'll deduct about £33 per month extra in tax in the 2027 to 2028 tax year.
"If you receive a payment for the tax year 2028 to 2029 or onwards, we'll collect your payment by adjusting your tax code for the tax year in which you receive the payment."
In addition, those who file a tax return will be asked to factor this in when completing the self-assessment.
Scam warning
HMRC has also recorded more than 25,000 winter fuel payment scam referrals over the past 12 months and told claimants to watch out for scams.
It said that it will never contact people by text or email to ask them to repay their winter fuel payment, or to request bank details.
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.”
Read also: Unions embarrass Keir Starmer as Labour conference votes to scrap winter fuel payment cut