Overview
- Experts are advising DWP state pension claimants who plan a one-off pension withdrawal to first take £1 to set their HMRC code.
- That small step can prevent an emergency PAYE code that treats the payout like a full month’s wage and takes too much tax upfront.
- HMRC data show that from January to March nearly 14,000 people reclaimed tax after flexible access, with £44.1 million returned.
- Quilter reports average refunds now slightly above £3,160, which can leave retirees short of cash while they wait for repayment.
- AJ Bell’s Tom Selby says code changes are processed faster and overcharged savers can use one of three HMRC forms to get refunds in about 30 days.