HMRC launches online tool to help UK retirees claim pension tax refunds
The UK tax authority has introduced a new online service that guides pensioners on how to reclaim overpaid tax and fees.
HMRC has rolled out an online calculator that identifies the appropriate refund route for taxpayers who have overpaid tax on pension income, including flexible withdrawals and death-benefit lump sums. Although the tool is digital, applicants must submit a specific form that can be downloaded from the government website. Separate forms exist for each type of refund, such as full pension access, small lump-sum withdrawals, and death-benefit payments.
The Institute of Chartered Accountants confirmed the tool’s purpose, but it does not enable direct online filing. Once a claim is processed, HMRC will issue the repayment through Faster Payments to the claimant’s bank account or nominee, with a year-end check to verify the amount.
