💷 Want to Claim a Tax Refund on Pension Payments? Here’s How!
If you’re on the brink of retirement and wondering how to snag some extra cash from overpaid taxes, HMRC has got you covered. They just released some handy guidance on how pensioners can claim tax refunds. 🎉
Here’s the scoop: if you’re retiring and become a “non-taxpayer” (meaning your income will fall below the personal allowance of £12,570 per year), you might be due a refund on any tax you’ve already paid. 💼💰
📞 Once you’ve got your P45 after retiring, give HMRC a ring. With the details over the phone, they can instruct your pension provider to refund any overpaid tax directly through your pension payments. Simple as that!
Plus, keep an eye on changes to the state pension. From April 2026, you’ll need to be 67 to qualify, up from 66. The full new pension rate is also set to increase thanks to the triple lock, giving a slight boost to your weekly income.
🤔 Not sure if you’re owed a refund? If there’s a tax error, HMRC typically lets you know with a letter (a P800 or a simple assessment letter) after the tax year ends in April. These are usually sent between June and March of the following tax year. But, if you don’t receive anything and believe you’re entitled to a refund, there’s an online tool to help you check your status.
Don’t leave money on the table. Make sure you’re getting every penny back that you deserve! 🤑💡
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