Tax Rebates & Refunds

If too much tax is taken from your pension, you can claim it back

August 19, 2012
Posted in Tax Rebates — Written by Chris

It can occasionally happen that you pay too much tax through your pension. If this happens, you should know that there is a way you can claim it back, through tax rebates.

First of all, let’s look at why you may have overpaid tax through your pension. Common reasons include:

• The wrong tax code or the wrong information about you was used by your pension provider
• HMRC doesn’t know about a reduction in your taxable State benefits or other taxable income
• You have several pensions, have more than one tax code and you haven’t used up all your taxable allowances on your first tax code
• You have received one or more trivial commutations (pension lump sums)
• The amount of annual State pension in your tax code is incorrect for some reason

Claiming your money back

The first thing to do if you think you have paid too much tax on your pension is to speak to a tax rebate expert to find out if you can put in a tax refund claim. You can also use tax rebate websites with refund calculator tools to work out how much you may be liable to claim. The next step is to fill in a simple form and send it off to the HMRC, then wait to receive your tax refund.

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