A senior pensions and retirement analyst is calling on HM Revenue and Customs (HMRC) to simplify its system after thousands of older people reclaimed over £22 million in overpaid tax.
Helen Morrissey at Hargreaves Lansdown has highlighted how between January 1 and March 31, 2022, HMRC paid out £22,317,529 to people who overpaid tax when they accessed their pensions flexibly - between April 1, 2021 and March 31, 2022 HMRC has repaid over £100 million in overpaid tax.
When someone accesses their pension flexibly, they are taxed on a ‘Month 1’ basis which means they are treated as receiving that sum every month - this can lead to tax overpayments.
