The tax authority explained the best way to claim a tax refund
HMRC has issued guidance on how to reclaim tax that you have overpaid on your pensions. The organisation outlined the procedures after a pensioner reached out, having overpaid a huge sum in tax.
The person contacted the authority through social media. Writing on February 17, they explained their pension provider had “overpaid tax on my private pensions by several thousand pounds in the last year”. They said they were keen to recover the funds quickly “rather than have to wait to do my next tax return”. They enquired of the tax authority: “What’s the best way to get it back?”
HMRC replied to suggest that, considering the time of year, it would be advisable to wait for the moment. HMRC informed the taxpayer: “As you’ve raised this with less than seven weeks before the end of the tax year, you will be best waiting until 6th April 2026 to complete your self assessment return for 25/26 and claim the refund through Self Assessment.”
The tax year concludes on April 5 every year, with the new financial year commencing on April 6. Should you need to submit a tax return for the current 2025/2026 tax year, this must be lodged by October 31, 2026, if you want to file a paper return.
However, the more common choice is to submit your tax return digitally, in which case you’ll need to complete this by January 31, 2027. Several significant tax changes are taking effect from April 2026.
Tax changes from April 2026
The Making Tax Digital programme is becoming obligatory, so more people must register and begin submitting regular updates to HMRC. From April 6, self-employed workers and landlords earning over £50,000 will be required to join the scheme.
Under the programme, you must provide digital quarterly updates to HMRC regarding your tax matters. In other changes from April, the tax on dividend income is rising by two percentage points.
This will push the ordinary rate from 8.75 per cent to 10.75 per cent, while the upper rate will climb from 33.75 per cent to 35.75 per cent. The additional rate will remain at the current 39.35 per cent.
Pensioners may also want to consider the state pension increase. Payments will rise by 4.8 percent due to the triple lock mechanism. This policy guarantees payments increase in April in line with whichever is highest: 2.5 percent, the inflation rate or the rise in average earnings.
The full new state pension will increase from £230.25 a week to £241.30 a week, or £12,547.60 a year. You can claim the state pension upon reaching 66, while you can begin drawing from your pensions at 55.
The state pension age is gradually increasing from April 2026, rising in stages to reach 67 by April 2028. The age you can access your private pensions is also rising relatively soon, increasing to 57 from April 2028.
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