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‘Outdated’ PAYE system causing headaches for people accessing pots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

Case study: The hidden risk of a single member SSAS without a professional trustee

Case study: The hidden risk of a single member SSAS without a professional trustee

The problem, the solution, lessons learned

Caitlin Southall
clock 30 March 2026 • 4 min read
Salary sacrifice protections overturned by House of Commons

Salary sacrifice protections overturned by House of Commons

Commons overturns Lords amendment to increase cap to £5,000 from initial £2,000 proposal

Holly Roach
clock 24 March 2026 • 1 min read
 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read