Former pensions minister turned Royal London director of policy Steve Webb has called for a complete overhaul of the "absurd" pension tax overpay system.
New HM Revenue & Customs (HMRC) figures show that tax overpayments since the pension freedoms came into force have now passed the £280m mark. In the first quarter of 2018, more than £22m had to be repaid by the Revenue where it had collected too much tax from those flexibly accessing their pensions. Warning to savers over 'emergency' tax on pension withdrawals This takes the running total since the start of the new system in April 2015 to around £285m. According to Webb, in most cases, withdrawals are taxed using an "emergency" tax code that routinely results in an excessive tax de...
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