Review tax collection on flexible pension withdrawals to reduce overpayments

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Review tax collection on flexible pension withdrawals to reduce overpayments

Petition Details

The Government should review how tax is collected on flexible pension withdrawals, to reduce and ideally eliminate overpayments that need to be processed at taxpayers’ expense.

Additional Information

Latest HMRC data shows that from January 2022 to March 2022, the Revenue has repaid a total value of £22,317,529 in tax on flexible pension withdrawals. That's just from the 7,000+ people who claimed the tax refund and doesn't include the thousands that haven't. That's over 28,000 people each year spending time reclaiming overpaid tax; it goes against the objective of increasing UK productivity. Dealing with 28,000 tax refunds each year on just this specific issue is surely a waste of HMRC staffs' time and something the UK tax payer is also paying for. May UK tax payers won't even recognise they have overpaid tax on this pension income and will never reclaim it, costing them money.

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