HMRC pays back £44m on overtaxed pension withdrawals

‘Outdated’ PAYE system causing headaches for people accessing pots

Jenna Brown
clock • 2 min read

HM Revenue & Customs (HMRC) paid £44m in tax refunds on flexible pension withdrawals in the third quarter, latest figures reveal.

Q3 2024 HMRC tax overpayment statistics showed 12,000 repayment claims were processed between July and September, totalling £44,295,438. Quilter head of retirement policy Jon Greer commented that while this quarter had seen a slight decrease in overpayments compared to the last, "it underscores the ongoing complexity and inefficiencies in the system when it comes to flexible pension withdrawals". "Despite a gradual easing in cost of living pressures, these figures suggest that many are still drawing from their pension savings to navigate financial challenges. "However, what's parti...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read
Pension first or last? What the numbers really tell us

Pension first or last? What the numbers really tell us

'Focusing solely on reducing the pension before death can increase lifetime tax'

Joshua Croft
clock 28 August 2026 • 4 min read
IHT on pensions: New thinking on taking income in retirement?

IHT on pensions: New thinking on taking income in retirement?

‘This has undoubtedly had a huge impact on planning for many clients’

Lisa Webster
clock 26 August 2026 • 3 min read