HMRC forces thousands to pay taxes they don't even owe
HMRC processed 18,851 tax refund claims with the average tax overpayment being £3,252 from July to September this year. The latest official figures show the extra tax charge is impacting those who are accessing their pensions, with people who access one-off lump sums from their pension taxed as if this person will pull out this amount from their pot every month - meaning they often pay far too much. Ian Cook at Quilter said: "HMRC has seen a significant 89% increase in the number of claim forms processed compared to last year, illustrating how many more people are turning to their pension pots to help them get by compared to last year. Unfortunately, those people are still stuck with an archaic system that over-taxes them and leaves them waiting for a long period before they can access the full amount owed.”