Additional Pension Overpayment and Reclaiming Tax

Sun-Is-Fun

I made a lump sum overpayment (gross tax) to pay into some additional pension at the end of last year from my employer's pension scheme. HMRC adjusted my tax code to reclaim my overpaid tax from my monthly pay.

I have just found out that I will be becoming redundant in a couple of months time.

What happens if I cannot find another job for a while? Will this tax code just continue with a new employer until all the overpaid tax has been paid?

If I find another job, I will undoubtedly be paid a much reduced wage than before, as I have decided I will not be going back to the same occupation and salary scale.

Is it possible to reclaim this tax owed as a lump sum payment from HMRC or does this have to come out of my wage packet when I find another job, irrespective of how long it takes for this overpayment in tax to be reclaimed? It could be years !

Thank you for your help.

mgdavid

depends on the actual numbers, as:
- the redundancy will be in next tax year
- the overpayment of tax might have been repaid over this tax year, or this and next tax year, depending on how big it is relative to your earnings.
So difficult to answer without any detail.
Overpaid tax can be reclaimed via SA but you'll need to talk to HMRC and work with them.

tigerspill

I suggest you complete a SA tax return for this year to get this resolved accurately.