Pensioners urged to act as HMRC issues £4,000 refund to 12,500 older savers
Pensioners could be being overtaxed by the government so need to check their records
Pensioners are being urged to check their tax records after HMRC repaid more than 12,500 older savers.
New data shows around £50.3 million was repaid to pensioner savers from April to June 2026 after they were over-taxed. The average payout was £4,000, reports Sky News.
Pensioners affected are those who make flexible pension withdrawals. They are often overtaxed because HMRC applies an emergency tax code to the withdrawal, effectively assuming a one-off withdrawal will become monthly income.
Those who are overtaxed can claim a refund from HMRC — and more than 12,500 people did so in the second quarter of 2026, forcing the government to pay out more than £50m.
With the average payout being in the thousands, pensioner savers are now being urged to check their records and make a claim if they have been placed on an emergency tax code.
To do so, pensioners need to fill in one of three forms, namely a P55, P53Z, or P50Z.
P55s should be used if a saver has only withdrawn part of their pension, while the P53Z should be used if you’ve emptied your pension and receive other taxable income.
If you emptied your pension but do not get any other taxable income, then a P50Z form should be filled in.
