State pensioners urged to withdraw £1 to escape having to pay £3,100

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State pensioners urged to withdraw £1 to escape having to pay £3,100.

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State pensioners accessing their retirement funds flexibly are being encouraged to employ a simple £1 strategy that could prevent them from being overcharged approximately £3,100 in tax.Department for Work and Pensions claimants can utilise this straightforward technique to sidestep significant overpayments when drawing from their pension pots.The method involves making the withdrawal before taking larger sums, which helps establish the correct tax code with HMRC.Without taking precautionary steps, retirees risk facing emergency tax deductions that leave them substantially out of pocket until the revenue corrects their position.

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TRENDING Stories Videos Your Say Revenue data reveals the scale of the problem, with close to 14,000 individuals forced to reclaim overpaid tax after accessing their pensions flexibly during the first quarter of this year.Wealth management firm Quilter reports that more than £44.1million was returned to savers in just three months.Adam Cole, retirement...

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