We have seen various Press articles of late highlighting the plight of those drawing on their pensions, and suffering overpayment of tax in the process.
Sadly, this is no more than a natural limitation of the PAYE system which can cause problems where income is ‘lumpy’. This is almost inevitable where ‘one-off’ withdrawals are made from pension plans, as is now possible under the new pension freedoms.
Thankfully, the answer is relatively simple and a repayment from the tax office should be possible in most cases.
It may be that those affected meet the criteria for Self-Assessment in any case, and filing a tax return to reclaim excessive tax withheld via the PAYE system is a robust way to access a refund. Our team are adept at identifying overpayments, and finding the quickest route to obtaining a repayment where relevant.
Please contact us for further consultation.