People who have withdrawn money from a private or workplace pension could be due a tax refund.
The latest Pension Flexibility data published by HM Revenue and Customs shows that nearly £57 million has been repaid to people who paid too much tax when they first accessed their pension. Retirement expert Helen Morrissey at Hargreaves Lansdown said the overpayments are a result of HMRC putting people on an emergency rate of tax.
Alternatively, anyone who has overpaid tax can wait until the end of the financial year for a refund. All refunds from HMRC are paid directly into your bank account. “Of course, you can get a refund - either by waiting until the end of the tax year or filling in one of a number of forms known as the P55, P53Z or P50Z, but this is a complication many people do not need and it’s a situation that should have been resolved years ago.
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