HMRC pays back £44m on overtaxed pension withdrawals

‘Outdated’ PAYE system causing headaches for people accessing pots

Jenna Brown
clock • 2 min read

HM Revenue & Customs (HMRC) paid £44m in tax refunds on flexible pension withdrawals in the third quarter, latest figures reveal.

Q3 2024 HMRC tax overpayment statistics showed 12,000 repayment claims were processed between July and September, totalling £44,295,438. Quilter head of retirement policy Jon Greer commented that while this quarter had seen a slight decrease in overpayments compared to the last, "it underscores the ongoing complexity and inefficiencies in the system when it comes to flexible pension withdrawals". "Despite a gradual easing in cost of living pressures, these figures suggest that many are still drawing from their pension savings to navigate financial challenges. "However, what's parti...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government confirms no compensation for WASPI women over state pension age changes

Government confirms no compensation for WASPI women over state pension age changes

DWP finds communication delays did not amount to financial loss

Martin Richmond
clock 17 December 2024 • 4 min read
Chancellor's move to pause Pensions Review 'deeply disappointing'

Chancellor's move to pause Pensions Review 'deeply disappointing'

Rachel Reeves has reportedly pressed indefinitely paused the review

Jenna Brown
clock 16 December 2024 • 3 min read
FCA targets pension transfers and SIPPs in major review

FCA targets pension transfers and SIPPs in major review

Regulator launches review of DC pension rules

Isabel Baxter
clock 13 December 2024 • 4 min read