How is the overpayment recovered?

Normally HMRC will reduce an employee’s tax code in the following tax year (2027/2028) and/or subsequent year (2028/2029) to recover the underpayment of tax.

If a pensioner is in financial hardship, it may be possible to have the adjustment made over two tax years or the employee can make a payment in full to clear the underpayment. The pensioner would need to contact the Pension Fund Helpline for this. (what will they be able to do?)