💼💰 Pension Surprises! Thousands Reclaim £10K+ After Tax Overcharge 💰💼
Imagine finding out you’ve been overcharged when withdrawing cash from your pension! That’s exactly what’s happened to thousands across the UK—but here’s the good news: they’re getting it back! 🎉
Royal London uncovered some eye-opening data: over 60,000 pension savers claimed tax refunds in the 2023-24 fiscal year. Some even pocketed over £100,000! 💷💸 All of this comes down to the pesky “emergency” tax rates applied to one-off withdrawals, assuming it’s your monthly income for the whole year. Yikes! 😵
Since the pension freedoms of 2015, those over 55 can access their pension savings flexibly, but watch out—your tax bill might not be what you expect! You can take 25% tax-free, but the rest could be taxed as income.
No need to panic, though! HMRC has taken steps to streamline this mess, promising quicker refunds by auto-updating tax codes for those new to receiving a private pension. 👍
But it’s not all smooth sailing. With looming changes like the 2027 inheritance tax decision, more folks are dipping into their pensions early, potentially spiking emergency tax charges further. ⚠️
Clare Moffat, a pensions guru, points out the shock many face when they see unexpected tax deductions. But worry not, the process is improving! Since 2015, around £1.4 billion has been refunded. 💪
So, if you’re diving into your pension nest egg, keep these insights in mind, and maybe keep HMRC on speed dial! 🤔☎️
Share your thoughts below—has this happened to you or someone you know? Let’s chat! 📣👇 #Pensions #TaxRefunds #UKMoneyMatters