how to get a rebate on overtaxed pension withdrawals
how to get a rebate on overtaxed pension withdrawals
Author
Discussion

Blackpuddin

Original Poster:

18,465 posts

223 months

Tuesday
quotequote all
Hello all, financially illiterate person here. I've been told that I shouldn't have been charged at the 40% rate for pension withdrawals taken in the last few years and that I can use a P55 form to claim the tax overpayment back.
IFA I was chatting to the other day said that the pension companies routinely do this.
Trying to cut through all the Google experts who are offering this service to find out if I can use this form for historic overpayments and not just any that might have been made in the current tax year, which is all that the Gov.uk site is talking about.
V grateful for any simple guidance, thanks in advance.

Huzzah

28,247 posts

201 months

Yesterday (14:24)
quotequote all
I had some overtaxed pension and went onto the government HMRC site. The monies were just sitting there waiting to be claimed, a couple of clicks then wait.

It took a little while to come threw but was pretty seamless. Not sure why they don't automatically refund it though.

Blackpuddin

Original Poster:

18,465 posts

223 months

Yesterday (19:18)
quotequote all
Wow interesting thanks, is there a specific bit of the HMRC site you can point me at?

LeoSayer

7,590 posts

262 months

Yesterday (21:10)
quotequote all
Form P55 is only for pension tax overpayments in the current tax year.

For previous years, HMRC will notify you by letter or email to claim your refund or they may just adjust your tax code. These normally happen up to 6 months after the end of each tax year.

You can see all this if you have created an account on the HMRC website/app. Just look at the relevant tax year from the Account Home page.

https://www.gov.uk/log-in-register-hmrc-online-ser...

Blackpuddin

Original Poster:

18,465 posts

223 months

Yesterday (21:16)
quotequote all
Thank you so much, I will attempt to open an online account as none of these overtaxed withdrawals are from the current tax year.

Armitage.Shanks

2,810 posts

103 months

Yesterday (23:41)
quotequote all
HMRC have a habit it seems of not telling you there is a tax refund waiting to be collected. My wife took all of her pension as a lump sump with the 25% tax free and the rest taxed at basic rate. She is a non taxpayer and despite telling the pension company they are mandated to deduct tax.

Someone on here mentioned it will be rectified at the end of the tax year, but we had forgotten about it. It was only when we went into her Gateway account to pay some extra NI years for SP we saw an 'overpayment of tax' sat there waiting to be collected. Withdrawn and stright into her account.

Blackpuddin

Original Poster:

18,465 posts

223 months

Thank you so much, I will attempt to open an online account as none of these overtaxed withdrawals are from the current tax year.

Blackpuddin

Original Poster:

18,465 posts

223 months

Hmm, managed to battle my way through the process to secure an online HMRC account but there's no sign of any tax overpayments on there that I can see. Standard Life are in the process of sending me details of withdrawals made and tax paid so I guess I'll wait for those to arrive (in 10 working days! rolleyes) before having another look.
Thanks to all for the useful advice.

LeoSayer

7,590 posts

262 months

What makes you think you've overpaid tax?

Blackpuddin

Original Poster:

18,465 posts

223 months

Maybe I didn’t, I honestly don’t know, all I am fairly sure about is that they took 40% off whatever I was withdrawing.

Sir Keith Stormer

168 posts

3 months

P53 form.

Blackpuddin

Original Poster:

18,465 posts

223 months

Hmm, the HMRC site was talking about P800 and PA302 forms rotate this really isn't my strong suit, I'll get the docs from SL and hopefully manage to go from there.

LeoSayer

7,590 posts

262 months

How much tax did you pay in each tax year?

Blackpuddin

Original Poster:

18,465 posts

223 months

Sorry I don’t have that info to hand and if I did I doubt I’d be broadcasting it here! With all respect etc