Neil MacGillivray: It pays to be aware of PAYE perils

Tax can be overpaid

clock • 3 min read

Real-time information has improved the speed with which adjusted PAYE tax codes can be applied but, warns Neil MacGillivray, advisers should make sure their clients are aware they may be overtaxed and what to do if this happens

One of my colleagues sent me a link to a Radio 4 Money Box podcast where Paul Lewis claimed hundreds of thousands of people who had used pension freedom to take lump sums had been overtaxed by thousands of pounds. He then went on to say he had new research that suggested the Treasury had a tax windfall of more than a billion pounds in the first two and a half years since the pension freedoms began from overpaid tax that had not been refunded. If so, then based on the fact £14.2bn has been withdrawn under pension freedom over this period, the Treasury would be benefiting from an additi...

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 Retirement

PA360: The 'human' element of retirement planning becoming ever more important

PA360: The 'human' element of retirement planning becoming ever more important

Retirement panel on client-centric approaches

Isabel Baxter
clock 02 May 2025 • 3 min read
'Urgent action' needed on Gen Z pension saving barriers: PPI report

'Urgent action' needed on Gen Z pension saving barriers: PPI report

Generation faces retirement challenges

Jasmine Urquhart
clock 26 February 2025 • 3 min read
Advisers concerned about regulatory scrutiny in decumulation phase

Advisers concerned about regulatory scrutiny in decumulation phase

Retirement planning ‘dominates’ client advice requests

Isabel Baxter
clock 27 November 2024 • 3 min read