Pension drawdown taxed at source - how long does HMRC take to refund overpaid tax? (self employed)

AspiringPensioner

https://forums.moneysavingexpert.com/discussion/comment/81906910#Comment_81906910

Ah, OK, thank you.

AspiringPensioner

https://forums.moneysavingexpert.com/discussion/comment/81906638#Comment_81906638

Whoa, that sounds a bit excessive…I'm hoping though that as I'm still self employed, and can initiate this process through my self assessment tax return, that it should be quicker.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81906913#Comment_81906913

If you go on to the Cutting Tax board you will find a thread of people who have submitted their returns very soon after the tax year ended and then a long list of people posting about how quickly they got a refund (or not). I am sure there will be another iteration of that thread in April and you can join in.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81906960#Comment_81906960

And from the op's perspective the number of posters unhappy with long waits does seem to have reduced over the years 🤞

AspiringPensioner

https://forums.moneysavingexpert.com/discussion/comment/81906960#Comment_81906960

Ha ha! Sorry if I posted in the wrong place. I did do some searches of the MSE site to try and find the answers but most of the results were years old (bring back the old advanced search! 😉) and didn't reflect my particular circumstances that closely.

Dr_Karl_Kennedy

I was in a similar situation to you last year.

I submitted my return online on 24th April and received the refund on 27th May.

AspiringPensioner

https://forums.moneysavingexpert.com/discussion/comment/81907396#Comment_81907396

Thanks for that! Good to know that the "approx 4 weeks" info seems to be about right 👍️

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/81907400#Comment_81907400

Possibly the confusion about timescales stems from your reference to different methods in your first post. Each having its own timescales and issues at different points in the tax year.

If you were to do a P53Z now using Govt Gateway, then based on recent known outcomes, you could have the money before the end of March.

AspiringPensioner

Follow-up question… would really appreciate if anyone has advice.

To summarise the background > I cashed in one of my small pots in March 2026 (this one with Hargreaves Lansdown) and received the money within a couple of weeks. As per my original question and the advice above, I can claim back the tax paid on the 75% taxable portion, as this income will be within my personal allowance for 2025-26. As I'm self-employed I'm going to do this via my self assessment tax return which I intend to submit ASAP once the new tax year starts.

My new question is - do I need to do anything with this P45 form that HL posted to me after this transaction was completed? It's a wee bit confusing as I'm not an "employee leaving work" and don't have a "new employer" but my understanding is that this is the default bit of paperwork for this, as in this case I am in effect treated as being on the pension co's payroll. Do I need to provide a copy of this P45 to HMRC/ attach a digital copy when I complete my self assessment? 🤔Or just keep it with my records but not actually do anything with it?

dunstonh

My new question is - do I need to do anything with this P45 form that HL posted to me after this transaction was completed?

It is too late to reclaim it via the government gateway or by paper now. So, you will need to give your accountant the P45 and let them handle it (assuming you don't do your own books)

 It's a wee bit confusing as I'm not an "employee leaving work" and don't have a "new employer" but my understanding is that this is the default bit of paperwork for this, as in this case I am in effect treated as being on the pension co's payroll.

P45s reflect the end of a payroll to you. Pension income is paid under payroll.

Do I need to provide a copy of this P45 to HMRC/ attach a digital copy when I complete my self assessment?

HMRC already have the data. You don't need to give them anything. You just put the figures on your self-assessment return.