One taxpayer said they had overpaid by ‘thousands’
HMRC has issued guidance on how to reclaim tax if you have paid too much on your pension payments. The authority outlined the rules after a pensioner contacted them, having overpaid a large amount of tax. The person reached out to the department on social media to ask for help.
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 eager to recover some of the money promptly “rather than have to wait to do my next tax return”. They questioned 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 ends on April 5 each year, with the new financial year beginning 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. The more common choice is to submit your tax return digitally, in which case you’ll need to get this completed by January 31, 2027.
Several big tax changes are being introduced from April 2026. The Making Tax Digital scheme is coming into force meaning some people must register and begin submitting regular returns to HMRC.
Tax changes from April 2026
From 6 April, self-employed workers and landlords earning above £50,000 will be required to join the programme. The scheme requires you to submit digital quarterly returns to HMRC regarding your tax position.
Tax on dividend income is also rising by two percentage points. This will push the ordinary rate up 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 looking over their finances may also want to factor in the state pension increase. Payments will rise 4.8 per cent under the triple lock mechanism.
This policy guarantees payments increase each April in line with whichever is highest: 2.5 percent, the inflation rate or the growth in average earnings. The full new state pension will increase from £230.25 weekly to £241.30 weekly, or £12,547.60 annually.
You can claim the state pension when you reach 66, while you can begin withdrawing from your pensions at 55. The state pension age is rising gradually from April 2026, moving up in phases to reach 67 by April 2028. The age you can access your private pensions is also increasing fairly soon, moving to 57 from April 2028.
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