HMRC pension error leaves thousands across the UK owed more than £3,000

People who have saved over the years could be entitled to thousands after HMRC overcharged on pension tax, according to latest figures.

Retired Brits could be owed thousands after it emerged 7,000 people with pensions overpaid by £33million in the last three months.

Based on average calculations it means each retiree could be owed £3,363 but experts warn the total could actually be even higher.

Jon Greer, head of retirement policy at Quilter said: “HMRC will make a repayment automatically, however given that could take time to be processed it is best to make a repayment claim yourself to avoid waiting.

“This emergency tax situation can be particularly frustrating for people trying to access their funds quickly, particularly if they don’t understand why it has happened.”

He added: “It arises due to an oddity of the PAYE system when people start to take money from their pension.”

The latest government Pension Schemes newsletter revealed HMRC repaid a total of £22,317,529 in the first three months of 2022 to people who had overpaid tax.

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