Whether you receive a state, company or personal pension through PAYE in the UK, there are a number of reasons why you may end up overpaying tax. However, many people who have a pension in the UK are unaware that they are due a tax refund. The good news is that there could be a cheque waiting for you at HMRC, and we can help you get it.

Pensioners and a piggy bank

Could you have paid too much tax?

Some of the most common reasons that people end up paying too much tax are the following:

  • Your pension provider has applied the incorrect tax code to you
  • Your pension provider has incorrect personal information for you
  • HMRC are unaware that your taxable state benefits or other income has reduced
  • You have more than one tax code as you have several pensions or employment income
  • You’ve taken cash or a lump sum that’s partly tax-free from your pension

If any of the following apply to you, you could be due a tax refund.

Claiming your tax refund

The way in which you claim your tax refund will depend your type of pension. If you have a private pension, your pension provider may pay you back automatically if you pay too much tax.

If your pension provider doesn’t pay you back automatically, HMRC will usually send you a P800 tax calculation by the end of September.

If you have taken cash or a lump sum from your pension, you will either have to fill in form P53 (if you have a defined benefit scheme) or form P53Z (if you have a defined contribution scheme, and you have other taxable income). Our sister company, Sable International, has a wealth division that can assist you with any of your complex tax-related queries.

If you have retired and only get the State pension, you will need to fill in form P50 on the gov.uk website in order to apply for your tax refund.

Unsure of whether you are due a tax refund? Our tax refunds team can help you with every aspect of claiming your refund. Get in touch with us on +44 (0) 20 7759 7560 or taxrefunds@sableinternational.com for expert advice and assistance.

We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you'll do so with the backing of experienced local experts.