People withdrawing money from a private or workplace pension could be due £3,800 tax refund

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Income tax rises for Scots in April - how the changes affect you

HM Revenue and Customs (HMRC) issued £48.7 million in refunds between April 1 to June 30 for overpaid tax on pension withdrawals. Retirement expert Helen Morrissey said that the latest data from HMRC indicates close to 13,000 refund forms were processed during this time with the average refund worth around £3,800. ‌

Ms Morrissey explained that people accessing a lump sum from their pension for the first time can be taxed too much. The main reason is that the HMRC system mistakenly believes that the same amount will be withdrawn every month, which can lead to an unexpected tax bill. ‌

However, the head of retirement analysis at Hargreaves Lansdown explains the money can be reclaimed from HMRC , but it ca