Emergency tax on a pension withdrawal, and how to claim it back
Updated 19 October 2026. Figures checked against official sources on 19 October 2026.
The first time you take taxable money from a pension, the provider often doesn't have your tax code yet. It uses an emergency code and taxes the payment as if you'd get that much every month (a "month 1" basis), so a one-off withdrawal can lose far more tax than it owes.
Worked example
From 77, your income falls short of the £25,000 a year you want.
- Age now
- 59
- Retire at
- 60
- Pots
- £295,000
- Take-home wanted
- £25,000 a year
- Plan until
- 95
A worked example
A first withdrawal of £20,000: a quarter tax-free, £15,000 taxable.
- Taxed as if paid every month, about £5,181 is taken.
- If it's your only taxable income that tax year, the tax due for the year is £486.
- That's about £4,695 overpaid, until it's put right.
Getting it back
- P55: you took part of a pot and won't take more this tax year.
- P53Z: you emptied a whole pot and are still working or getting other income.
- P50Z: you emptied a whole pot and have stopped working.
If you don't claim, HMRC usually corrects it after the tax year ends. Some people take a small first withdrawal, so the provider receives a tax code before any larger ones.
In the calculator
The year-by-year table marks the year of each first taxable withdrawal. With the example plan: First taxable pension withdrawal: Workplace pension at 60. Providers usually take emergency tax on a first withdrawal, which can be claimed back: form P55 for part of a pot, P53Z if a whole pot is emptied while still working, or P50Z if it's emptied after stopping work.
Questions people ask
Why was so much tax taken from my pension withdrawal?
A first withdrawal is usually taxed on an emergency code as if you'd receive the same amount every month. In our example, about £5,181 is taken from a £20,000 withdrawal where £486 is due for the year.
How long does a pension tax refund take?
HMRC's online forms are usually quicker than post. If you don't claim, HMRC normally corrects it after the end of the tax year.
Which form do I use to reclaim emergency tax?
P55 for part of a pot, P53Z if you emptied a pot and are still working, P50Z if you emptied a pot and have stopped working.
Sources
Rates and rules were checked against these on 19 October 2026. Worked-example figures come from the calculator, using 2026/27 tax rules.