Guidance

Countdown Bulletin 46 - July 2019

Published 2 July 2019

Scheme Financial Reconciliation deadline

In Countdown Bulletin 45 we told you we will be re-running the Scheme Financial Reconciliation refunds and billing exercises. You need to re-engage if any of the details you provided in your original engagement have changed, for example payee details for refunds.

If you did not engage for the original billing and refund exercises we encouraged you to do so for the reasons given in Countdown Bulletin 40.

This bulletin is to advise that you have until close of business on 19 July 2019 to engage or re-engage.

You will need to complete the scheme engagement template provided with Countdown Bulletin 45 and send it to schemereconciliationtelephoneenquiry.inbox@hmrc.gov.uk.

Scheme Financial Allocations

We are receiving queries asking about Scheme Financial Allocations.

The automated scheme financial allocation exercises have been developed to offset any unallocated money received from Pension Scheme Administrators (PSAs) against outstanding money owed to HMRC at scheme level, by the scheme on behalf of its members. The steps below outline the automated process taken to allocate receipts and receivables, which is in line with the HMRC business as usual process.

Throughout this overview there will be multiple references to receipts and receivables, which are defined below.

Receipts - money received by HMRC

Unallocated or part-allocated receipts: excess or unallocated money held by HMRC.

Receivables - money owed to HMRC

Unpaid or part-paid receivables: outstanding debt or money owed to HMRC

The automated scheme financial allocations exercises are run as follows and are all run at a scheme level. This means that receipts and receivables are always allocated to each other within the same scheme.

Part 1: receipts and receivables with matching National Insurance number

The first stage is to allocate receipts to receivables where there is an identical National Insurance number on both the receipt (money received) and receivable (money owed).

Receipts with a National Insurance number are matched to receivables with the same National Insurance number and offset against each other so that:

• receipts and receivables with identical monetary values are identified and allocated first

• receipts and receivables with mismatching monetary values are allocated second

Where more than one match is identified in each scenario above, the oldest receipts and receivables are allocated first.

Part 2: receipts with no National Insurance number

The second stage is to allocate receipts to receivables where there is no National Insurance number shown on the receipt. These cases are where PSAs have submitted payments and not listed specific individuals for which the payments have been made.

Receipts without a National Insurance number are matched to receivables and offset against each other so that:

• receipts and receivables with identical monetary values are identified and allocated first

• receipts and receivables with mismatching monetary values are allocated second

• the process will continue until either all receipts have been used and/or all receivables have been paid

Where more than one match is identified in each scenario above, the oldest receipts and receivables are allocated first.

Part 3: receipts and receivables with National Insurance number mismatch

The third stage is to allocate receipts to receivables where there are mismatching National Insurance numbers on the receipt and receivable.

National Insurance numbers are in the format of two prefix letters, followed by six numbers then a suffix letter. Mismatching National Insurance numbers are where at least one instance of the prefix letters or numbers differ. The suffix letter is not used for matching purposes.

Receipts with a National Insurance number are matched to receivables with a mismatching National Insurance number (within scheme) and offset against each other so that:

• receipts and receivables with identical monetary values are identified and allocated first

• receipts and receivables with mismatching monetary values are allocated second

• the process will continue until either all receipts have been used and/or all receivables have been paid

Where more than one match is identified in each scenario above, the oldest receipts and receivables are allocated first.

This stage concludes the financial allocations at scheme level, meaning a scheme will be left with either receipts only (in surplus), receivables only (in deficit) or neither (in balance).

Problems accessing Shared Workspace

If you experience problems accessing the Shared Workspace service, you should check the service availability page to see if the service is currently available, or undergoing planned maintenance.

The Shared Workspace service includes product help pages. To access them select the ‘Help’ link from the top right corner of the Shared Workspace window. This page describes any current known issues and what to do if they’re affecting your use of the service.

If you receive a system error message when you are in Shared Workspace, please contact our IT helpline. You will need to quote the reference number shown on your message.

For further information and guidance, visit help and support for Shared Workspace users.

Useful links

For more information read HMRC: pension schemes reconciliation services.

Earlier editions of the National Insurance Services to Pension industry: countdown bulletins.

Guidance on the end of contracting-out for scheme administrators and trustees HMRC: pension schemes end of contracting-out guidance.

Contact details

For general queries about contracted-out pensions please contact the helpline on Telephone: 0300 200 3507.

General queries about the Scheme Reconciliation Service or Scheme Cessation should be made to the Customer Relationship Team at email: CRM.schemereconciliationservice@hmrc.gsi.gov.uk.