Pensioners Reclaiming Overpaid Tax – Are You Eligible?

Did you know thousands of pensioners are getting back money they overpaid in taxes? Over the past few months, more than 12,000 pensioners managed to reclaim some cash from the taxman, totaling over £38.7 million.

So, why are pensioners getting overtaxed in the first place? Well, since 2015, HMRC have been using this method where they tax the first flexible withdrawal a person take during a tax year on a ‘Month 1’ basis. It sounds complicated, but basically, if you only take out money once, you might end up paying too much tax.

Now, if you’re someone who gets a regular income from your pension, you’re probably okay because HMRC usually adjust things automatically. But if you’re someone who makes just one withdrawal and ends up overpaying, you could get your money back!

All you need to do is fill out one of these three forms, depending on your situation:

• Form P53Z if you’ve emptied your pot but you’re still working or getting benefits.
• Form P50Z if you’ve emptied your pot and you’re not working or getting benefits.
• Form P55 if you’ve only taken out part of your pension.

Once you fill out the form, you should get your refund within 30 days. Easy, right? So, if you think you might have overpaid on your pension, it’s worth checking out if you’re due for a refund. You could be in for a nice surprise! If you need support with this don’t hesitate to get in touch.