Pensions - Articles - HMRC over taxing spree passes GBP400m mark


New figures issued today by HMRC (see notes to editors) show that HMRC has now over-taxed pension savers by more than £400 million since the start of pensions freedoms in April 2015.

 This is income tax which is deducted when individuals make lump sum withdrawals from their pension fund after the age of 55. HMRC routinely tax on the basis of an ‘emergency’ tax code which results in large overpayments which then have to be recovered by individual taxpayers who fill in one of three different claim forms depending on their circumstances. Looking at data for the whole period since Q2 2015, HMRC have had to pay back tax on 174,000 occasions, with the total amount repaid now standing at £402m. In the most recent quarter (Q4 2018) over £30m was repaid to over 13,000 people.

 Commenting, Helen Morrissey, Pensions Specialist at Royal London said: ‘HMRC is utterly shameless in the way that it over-taxes people and then expects them to claim a refund. The system should be run for the convenience of taxpayers, not the convenience of HMRC. It is time that this over-taxing spree was brought to an end’.
  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.