Don't Get Caught Cold: The Crucial Tax Deadline to Opt Out of Winter Fuel Payments

LHP Accountants
Aug 28, 2025
4 min read

For millions of pensioners across the UK, the Winter Fuel Payment is a vital lifeline, helping to ease the burden of heating bills during the colder months.

But what if receiving it could land you with an unexpected tax bill?

There's a little-known but critically important deadline looming that higher-income pensioners must be aware of:

The deadline to opt out of receiving the Winter Fuel Payment for the upcoming tax year is Monday 15th September.

Miss this date, and you could be locked into receiving a payment you don't want, potentially triggering a tax charge later down the line.

Here’s everything you need to know to stay in control.

Why Would Anyone opt out? The Tax Trap Explained:

Since the 2017/18 tax year, the rules changed. If your income is above a certain threshold (£26,000 for the 2024/25 tax year, rising to £29,000 for 2025/26), receiving the Winter Fuel Payment counts as taxable income.

The Issue: The payment itself is made tax-free. However, it increases your overall taxable income for the year.

The Consequence: This extra income could push you into a higher tax bracket or reduce your tax-free Personal Allowance (if your income is very high), resulting in an unexpected tax bill when you complete your Self-Assessment tax return.

The Solution: You can choose to “opt out” of receiving the payment before it's made, ensuring it doesn't inflate your taxable income and cause that tax headache.

But Who Needs to Pay Attention?

This deadline is crucial only for pensioners who meet both criteria:

You are eligible for the Winter Fuel Payment: Typically, this means you were born on or before 22 September 1958 (for the 2024/25 winter).

Your income is above the relevant threshold: £26,000 for the 2024/25 tax year (the payment you'd receive in Winter 2024/25 relates to the 2024/25 tax year).

Remember, this threshold includes all your taxable income – state pension, private pensions, earnings, savings interest, etc.

If your income is comfortably below the threshold, you don't need to do anything

The Critical Deadline: Monday 15th September.

Mark it in your calendar: This is the deadline each year to opt out of receiving the Winter Fuel Payment for the following winter.

Why is this date so important?

Because the Winter Fuel Payment is automatically paid to eligible individuals.

Once the payment is made (usually in November or December),

How to Opt Out: It's Simple (But Do It Now!)

The process is straightforward, but you must act before Monday 15th September:
Contact the Winter Fuel Payment Centre: You cannot opt out online.
Phone: 0800 731 0160 (Lines are open 8am to 6pm, Monday to Friday).
Have your National Insurance number ready.
Post: Fill in the opt-out section on the letter you receive about your Winter Fuel Payment (if you get one) and send it back.
Alternatively, you can write to: Winter Fuel Payment Centre Post Handling Site B Wolverhampton WV98 1LR Include your full name, address, date of birth, and National Insurance number. Clearly state you wish to opt out of receiving the Winter Fuel Payment for the upcoming winter.

Key Takeaways: Act Before It's Too Late:

Deadline is 15th September: This is fixed and absolute for opting out of the next winter's payment.

Higher Earners Only: Only relevant if your income exceeds the threshold (£26k for 2024/25, £29k for 2025/26).

No Takebacks: Once paid, you cannot return the payment or opt out for that year. The tax liability stands.

Annual Decision: Opting out is for one winter only. You need to assess your income and decide again each year before the 15th September deadline.

Act Proactively: Don't wait for a reminder letter. If you know your income is likely to be above the threshold, make the call or send the letter well before the deadline.

Don't Let a Warm Winter Payment Lead to a Cold Tax Shock

Taking this simple step now ensures you avoid an unexpected tax bill later and keeps your financial planning warm and worry-free.

Spread the word! If you have elderly parents, relatives, or neighbours who might be affected, please share this information with them.

They might not be aware of this crucial deadline.