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Some state pensioners have been warned they will need to surrender their Winter Fuel Allowances or face being stung from HMRC. State pensioners could cross the threshold of being taxed thanks to the Winter Fuel Payment.
New rules announced in June mean more people will get the Department for Work and Pensions ( DWP ) payment this winter, compared to last year. But for the first time, anyone with income over £35,000 will need to pay the money back via the tax system.
Sarah Coles, personal finance expert at Hargreaves Lansdown, says: “If you don’t opt out, and your taxable income is over £35,000, then it will need to be paid back.
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“If you normally pay tax through PAYE on your pension or