HM Revenue and Customs (HMRC) has had to reimburse nearly £5.7million to people who paid too much tax when first accessing their pension, new figures show.

The latest data on Pension Flexibility reveals that between April 1 and June 30, a significant £56,925,219 million was refunded.

This overpayment occurs because HMRC sometimes applies an emergency tax rate, assuming that a lump sum withdrawal will be taken as a regular monthly income.

Analysts have slammed the tax method, warning it could…