Pensioners could be owed 'thousands' by HMRC - check if you're affected

HMRC could owe you £3,800 if you've taken money out of your pension (Image: Getty)

Pensioners could be due tax refunds of up to £3,800. If you've taken a lump sum from your pension, there's a chance you may have overpaid on tax.

HM Revenue and Customs (HMRC) data reveals that between 1 April and 30 June, the tax authority refunded £48.7 million for overpayments on pension withdrawals. Retirement expert Helen Morrissey suggests that around 13,000 refund applications were processed during this period, with the average refund being approximately £3,800.

As reported by the Daily Record , Ms Morrissey emphasised that those withdrawing a lump sum from their pension for the first time can face excessive taxation. This is primarily because HMRC's system wrongly assumes the same amount will