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‘Outdated’ PAYE system causing headaches for people accessing pots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

 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
Pension freedoms exposed a longevity problem we still refuse to confront

Pension freedoms exposed a longevity problem we still refuse to confront

'The gap between product complexity and consumer understanding is not narrowing'

Julia Fintz
clock 11 March 2026 • 4 min read
Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Complex Hartley Pensions administration continues amid 'misappropriated funds' investigation

Administration expected to conclude in 2027

Isabel Baxter
clock 10 March 2026 • 3 min read