HMRC to end overtaxing of pension withdrawals, saving pensioners from £1.3 billion in refunds.

HMRC will end the practice of overtaxing pension withdrawals and forcing savers to claim refunds, starting April 2025. This change, praised by former Pensions Minister Steve Webb, involves replacing 'emergency' tax codes with regular ones to ensure accurate real-time tax deductions, reducing the need for refunds or year-end reconciliations. Since 2015, the old system has overcharged pensioners by £1.3 billion.

2 months ago
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