If you’ve recently accessed your pension and noticed that too much tax was deducted, you’re not alone. Many people in the UK face this issue when taking pension lump sums or flexibly accessing their pension pots. Fortunately, HMRC provides several ways to reclaim overpaid tax, depending on your circumstances. This guide walks you through the different scenarios and the correct forms to use, with direct links to each.
Why You Might Be Owed a Tax Refund
When you withdraw money from your pension, especially as a lump sum, HMRC often applies an emergency tax code. This can result in a higher-than-necessary deduction, particularly if it’s your first withdrawal in the tax year. The good news is that you can reclaim this overpaid tax using one of several forms, depending on your situation.
Which Form Should You Use?
1. Form P50 – If You’ve Stopped Working and Have No Further Income
Use this form if:
- You’ve stopped working.
- You’ve taken a pension lump sum.
- You don’t expect to receive any more income in the tax year.
Where to get it:
Form P50 – Claim for repayment of tax when you have stopped working
2. Form P53 – For Small Pension Lump Sums (Trivial Commutation)
Use this form if:
- You’ve taken a small pension pot as a lump sum (usually under £10,000).
- You’re still working or receiving other income.
Where to get it:
Form P53 – Claim a tax refund on a small pension lump sum
3. Form P53Z – If You’ve Emptied Your Pension Pot
Use this form if:
- You’ve taken your entire pension pot as a lump sum.
- You’re still working or receiving other income.
Where to get it:
Form P53Z – Claim tax back after taking your whole pension pot
4. Form P55 – If You’ve Flexibly Accessed Part of Your Pension
Use this form if:
- You’ve taken part of your pension pot.
- You haven’t emptied the pot.
- You’re not planning to take regular payments.
- Your pension provider can’t refund the tax.
Where to get it:
Form P55 – Claim back tax on a flexibly accessed pension overpayment
How to Submit Your Claim
You can usually complete these forms:
- Online via the GOV.UK website (you’ll need a Government Gateway account).
- By post by downloading, printing, and mailing the form to HMRC.
Postal address for most forms, please check with HMRC:
Pay As You Earn
HM Revenue and Customs
BX9 1AS
United Kingdom
What You’ll Need
Before you start your claim, gather the following:
- Your National Insurance number.
- P45 from your pension provider (if applicable).
- Details of any other income you expect to receive in the tax year.
- Your pension provider’s PAYE reference number.
What Happens Next?
Once HMRC receives your form:
- They’ll calculate any refund due.
- You’ll receive a payable order (cheque) by post.
- Refunds typically take 4 to 6 weeks, but this can vary.
Note: HMRC does not issue refunds via BACS for these claims, so ensure your postal address is up to date.
What If You Don’t Reclaim?
If you don’t submit a form, HMRC will automatically review your tax position at the end of the tax year (after 5 April) and issue a refund if you’ve overpaid. However, this can take several months, so submitting a form is the faster option.
Final Tips
- Act promptly: The sooner you submit your form, the sooner you’ll receive your refund.
- Use the correct form: Choosing the wrong form can delay your claim.
- Keep records: Save copies of your forms and any correspondence with HMRC.
Conclusion
Reclaiming overpaid tax on your pension doesn’t have to be complicated. By understanding which form applies to your situation and submitting it with the right information, you can ensure you get back what you’re owed quickly and efficiently.
If you’re unsure which form to use or need help filling it out, consider speaking with a tax adviser or contacting HMRC directly.