After the HMRC overcharged on pension tax, thousands in the UK are owed around £3,363, according to latest figures. In fact, it has been warned that - in the last three months alone - some 7,000 pension savers overpaid by a whopping £33million.
Based on average calculations, each individual could be owed as much as £3,363 each, but that number could rise even higher, according to a warning by experts. Birmingham Live reports that people who access one-off lump sums from their pension are taxed like monthly income, meaning they have been paying too much.
Jon Greer, head of retirement policy at Quilter said: "HMRC will make a repayment automatically, however given that could take time to be processed it is best to make a repayment claim yourself to avoid waiting. This emergency tax situation can be particularly frustrating for people trying to access their funds quickly, particularly if they don’t understand why it has happened.
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He added: "It arises due to an oddity of the PAYE system when people start to take money from their pension." HMRC repaid a total of £22,317,529 in Q1 2022 to people who overpaid tax when they flexibly accessed their pensions, the latest government Pension Schemes Newsletter has confirmed.
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