HMRC refunds UK pensioners £50m after overcharging on withdrawals

express.co.uk

HMRC overcharged pensioners taking flexible withdrawals, refunding £50.3m in Q2 2026, averaging nearly £4,000 per person. Emergency tax codes assume one withdrawal repeats monthly, inflating annual income; a £10,000 withdrawal is taxed as if income were £120,000. More than 12,500 reclaim forms processed. Experts say PAYE was designed for predictable earnings, not ad hoc withdrawals, urging reform. HMRC insists nobody ultimately overpays; savers can claim refunds. Personal allowance freeze adds pressure.


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HMRC refunds UK pensioners £50m after overcharging on withdrawals | News Minimalist