Tax refund figures published this morning by HM Revenue & Customs (HMRC) show the organisation is "out of control" when it comes to over-taxing people and then expecting them to claim refunds, according to Royal London.
Analysis from the provider showed that since April 2015, HMRC has had to hand back just under half a billion pounds to taxpayers who have been over-taxed. Royal London said HMRC is collecting huge sums in tax from two areas which it then has to hand back to the taxpayer. Since April 2015, the total amount refunded to taxpayers through income tax on pensions withdrawals has been £262m. Savers using the pension freedoms are taxed on an ‘emergency tax' basis when they take money out of their pensions, and then have to fill in one of three different forms to claim money back. Meanwh...
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