Pensions - Articles - New figures show HMRC over taxing spree moves up a gear

 The latest HMRC Pensions Schemes Newsletter shows that in the period July to September 2018, HMRC processed 18,000 claims for repayment of excess tax on pension withdrawals and the amount reclaimed was over £38 million. This compares with £28 million in the previous quarter and brings the total amount reclaimed in the past four quarters alone past the £100 million mark.

 Commenting, Steve Webb, Director of Policy at Royal London said: “HMRC must be rubbing their hands with glee as taxpayers are forced to fork out millions of pounds in unnecessary tax on pension withdrawals, all for the administrative convenient of the government. The scale of over-taxation seems to be increasing, with £38m having to be paid back in the latest quarter. There must be a better way than the current system where taxpayers have to fill in one of three forms to claim back the tax that they should never have had to pay in the first place”.