Pension emergency tax refund - 30 or 90 days?

Artemis444

I recently paid an extortionate amount of emergency tax on my pension drawdown, with the expectation of being able to receive a refund within 30 days of submitting the form.

That is what was said in the confirmation email from HMRC, and it is what is stated on this website and many others.

However, when I go into Govt Gateway and click to trace when I will get a response, it says 11th January 2025, 90 days after I submitted the form. Also, not to contact them until after that date. It also said it is currently processing claims dating back to 9th August.

So, my question is, have people who have made a recent claim received their refund within 30 days as committed to by HMRC, or are they actually seriously behind in processing them? Has anyone else come across this 90 day issue?

To me, if refunds are actually taking between 30 - 90 days to be processed, surely that should be clearly communicated! I am counting on receiving the money back in the next couple of weeks, not in the New Year!

Thanks for your response.

molerat

It also said it is currently processing claims dating back to 9th August.

Looks like they are catching up then

Has anyone else come across this 90 day issue?

This is currently the norm. HMRC are overworked and understaffed.  Anything that needs human intervention is taking 3 months absolute minimum to deal with.  Looks like they are doing better than DWP who are at around 15 to 20 weeks.

dunstonh

I recently paid an extortionate amount of emergency tax on my pension drawdown, with the expectation of being able to receive a refund within 30 days of submitting the form.

30 days has been when the service is not stressed and that is when using the online method.  The paper method is more like 3 months.   

Earlier in the year it was 4 weeks (electronic method) but recently it appears to have slipped to about 6 weeks.

So, my question is, have people who have made a recent claim received their refund within 30 days as committed to by HMRC, or are they actually seriously behind in processing them? Has anyone else come across this 90 day issue?

HMRC do not have a commitment to timecsale.    Quickest online I have had is 3 weeks.  4 weeks is typical but periodically it does take longer.

To me, if refunds are actually taking between 30 - 90 days to be processed, surely that should be clearly communicated! I am counting on receiving the money back in the next couple of weeks, not in the New Year!

30-90 is the typical range.   It has been longer (Covid period for example).

Artemis444

Thanks for your responses. Aside from my personal situation (I submitted my form online), part of it for me is the principle - if the reality is that refunds are currently taking between 30 - 90 days, that's what should be communicated by HMRC, pension companies, MSE etc.

It is very misleading to state 30 days if that's not what they are able to fulfil. People may have tight deadlines for receiving their refund, plus they're losing out on interest whilst HMRC sits on their/our money.

MK62

Artemis444 said:

So, my question is, have people who have made a recent claim received their refund within 30 days as committed to by HMRC, or are they actually seriously behind in processing them? Has anyone else come across this 90 day issue?

The time will vary with HMRC's workload......I claimed mine online this year on 21/5 and the money arrived in our account on 23/7......so 63 days, but it was sooner than their website was saying in July (but the estimated date was steadily pushed back as the weeks went by)

Nortonred100

Hi revelent to this post , i have drawn down my pension in March for tax year 2023 to 2024 and paid emergency  tax , on  claiming my tax refund I was informed my provider had not reported this payment to hmrc and not provided a p60 to myself or hmrc ,after 6 months of phone calls and emails they have just admitted what they have done . Has anybody got any information as who I can contact to report this and escalate any action I can take against them . 

Thank you .

Marcon

Artemis444 said:

Thanks for your responses. Aside from my personal situation (I submitted my form online), part of it for me is the principle - if the reality is that refunds are currently taking between 30 - 90 days, that's what should be communicated by HMRC, pension companies, MSE etc.

It is very misleading to state 30 days if that's not what they are able to fulfil. People may have tight deadlines for receiving their refund, plus they're losing out on interest whilst HMRC sits on their/our money.

Pension companies and MSE aren't going to be 'communicating' on HMRC timescales. They have no control over them and rarely the requisite 'insider' knowledge. 'Quoting' HMRC is not the same thing as 'stating' that will be the timescale.

The HMRC website has caveats all over it in terms of timescales for doing anything - time of year, whether the application was made on paper or online, whether the correct form has been used, if additional security checks are needed, whether the sun is shining... 

There is a workround for this issue, and that has been widely publicised by MSE and providers. Make a small initial withdrawal from your pension, which will trigger the issue of a tax code from HMRC to the pension provider; and then withdraw any larger sum, which will use that code rather than the emergency code.

Having said all that, if you've applied online and used the correct form, there's a reasonable chance you'll get your refund within 30 days.

As for interest - see https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

Marcon

Nortonred100 said:

Hi revelent to this post , i have drawn down my pension in March for tax year 2023 to 2024 and paid emergency  tax , on  claiming my tax refund I was informed my provider had not reported this payment to hmrc and not provided a p60 to myself or hmrc ,after 6 months of phone calls and emails they have just admitted what they have done . Has anybody got any information as who I can contact to report this and escalate any action I can take against them . 

Thank you .

Have you made a formal complaint to your provider? 

Dazed_and_C0nfused

Nortonred100 said:

Hi revelent to this post , i have drawn down my pension in March for tax year 2023 to 2024 and paid emergency  tax , on  claiming my tax refund I was informed my provider had not reported this payment to hmrc and not provided a p60 to myself or hmrc ,after 6 months of phone calls and emails they have just admitted what they have done . Has anybody got any information as who I can contact to report this and escalate any action I can take against them . 

Thank you .

Employers and pension companies stop sending P14's to HMRC (the HMRC version of your P60) over 10 years ago so no surprise there.

If you left funds in the pension then I would have expected you to get a P60 though.  But if not then you wouldn't get one either.

Can you share "what they have done"?

sgx2000

Funny if you put your tax forms in late you get fined....

If they are late......?...

Dazed_and_C0nfused

sgx2000 said:

Funny if you put your tax forms in late you get fined....

If they are late......?...

You can be paid some interest, usually from the same date a return will be considered late.

The interest rate is currently 4.0%.