Brits hit with £44m in excessive taxes on pension pots due to HMRC errors
Official HMRC figures have revealed that errors in the tax system led to individuals being overcharged by £44 million due to excess tax taken when they withdrew funds from their pension pots between July and September. The issue arises because HMRC applies an excessive emergency tax rate to the first lump sum withdrawal, causing an individual to be thousands of pounds out of pocket as the system mistakenly assumes it's a regular income rather than a one-time payment.
