HMRC confirms £300 bank account deductions for certain state pensioners

HMRC has confirmed that it will be deducting hundreds of pounds from some pensioners as part of the new Winter Fuel Payment system this year, which could cause confusion for those affected.

Some retirees will initially receive money, but they won't be able to keep it. This is due to them being deemed too affluent to qualify for Winter Fuel Payments.

HMRC will reclaim the money from those with annual incomes exceeding £35,000, which is the threshold for receiving the payments. In most instances, this will be done automatically through PAYE.

READ MORE: Exact date Winter Fuel Payments will land in pensioners' bank accounts

READ MORE: DWP says when millions can expect Winter Fuel Payment letters

There may be confusion as to why money is appearing in accounts when people don't qualify for the payments. It was viewed as the simplest method of distinguishing between those who do and don't qualify this year.

Pensioners should also be aware that cash will be deducted at a later date. The payments, worth up to £300, are given to low-income seniors to assist with their energy bills during the colder months.

New qualifying rules have been implemented this year following controversy over cuts 12 months ago, reports Birmingham Live. Now, approximately nine million pensioners will receive the support, with cash being deposited into bank accounts from November.

Help us improve our content by completing the survey below. We'd love to hear from you!