Guidance

Pension schemes newsletter 107 - February 2019

Published 27 February 2019

Relief at source

Annual return of information 2018 to 2019

In the Relief at source Pension Schemes Newsletter – September 2018 we explained that we’d be introducing a new version of the annual return of information for pension scheme administrators or relief at source schemes to use from 2018 to 2019 onwards. We’ve been asked when this will be available and we’re sorry that we’ve not been able to publish this sooner. We are working to publish this imminently.

We’ll email pension scheme administrators who are currently on our relief at source technical specifications mailing list when this is available. If you want to be added to this mailing list, you should email pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘Annual return technical specifications’ in the subject line of your email.

We’ll also let you know that this has been published in a future newsletter and will update our GOV.UK guidance.

Submitting your annual return of information using the new 2018 to 2019 format

As we explained in Relief at source pension schemes newsletter - December 2018, you must change the way you name the sub references on your return if you choose to submit your annual return of information using the 2018 to 2019 spreadsheet or electronic flat text file specifications. If you use the new format your sub references must run from 21, instead of starting from 01, even if you only have one sub reference.

So if you usually submit a file with a sub reference 01, this would become:

• P0000_21_001_001_2019

Returns with multiple sub references must use sub references running from 21 onwards instead of sub references running from 01.

For example:

• P0000_01_001_001_2019 becomes P0000_21_001_001_2019
• P0000_02_001_001_2019 becomes P0000_22_001_001_2019
• P0000_03_001_001_2019 becomes P0000_23_001_001_2019
• P0000_08_001_001_2019 becomes P0000_28_001_001_2019
• P0000_10_001_001_2019 becomes P0000_30_001_001_2019

As we previously explained changing the way you name the sub references does not affect how you name the batches. If you’re submitting two or more batches under the same sub reference you should use this format:

• P0000_21_001_002_2019
• P0000_21_002_002_2019

It’s really important that you name all your annual returns correctly. If you use the current naming convention on a return you submit in the new format, this will result in the return being rejected and may affect your future relief at source interim claims.

Master Trusts - The closing date for applications for authorisation is 31 March 2019

If you’re responsible for a Master Trust and you’re planning to apply to The Pensions Regulator (TPR) for authorisation, you must do this by 31 March 2019 so your scheme can continue to operate.

If you have not applied for authorisation by this deadline and your pension scheme continues to operate, TPR may issue a fine and your scheme may be required to exit the market.

TPR must receive a complete application on or before 31 March 2019, unless the Master Trust has requested an extension.

TPR may grant Master Trusts an extension of up to six weeks to apply for authorisation if there is a good reason why an extension is needed, but extensions are not guaranteed. TPR has published guidance providing more information about this.

If you’re responsible for a Master Trust you should make sure your applications are not missing any required documents or information. Incomplete applications could delay or even prevent your Master Trust from being authorised. You should use TPR’s application index form to check you everything you need to submit a complete application.

Reporting non-taxable death benefits

We’ve been asked by some pension scheme administrators reporting death benefits that are entirely non-taxable, if using 0T tax code for these payments is acceptable.

You can find guidance on how you should report these payments in the CWG2: further guide to PAYE and National Insurance contributions. Section 2.2.7 of the 2018 to 2019 guide explains you should use Emergency Code on a ‘Week 1’ or ‘Month 1’ basis or where you have a current year P45, use that code on a ‘Week 1/Month 1’ basis. However if you’re unable to report these payments in this way, you can instead use a tax code of 0T to report regular death benefit payments that are entirely non-taxable. You can only do this if you’re reporting death benefit payments that are entirely non-taxable.

In Pension Schemes Newsletter 106 we explained that we know it may take time for scheme administrators to amend their processes to begin to report these payments again. We have no expectation that full reporting of these payments will be in place for 6 April 2019 but want to encourage you to start reporting these as soon as you’re able to. We’ll keep you updated on this in future newsletters.

Managing Pension Schemes – registering as a scheme administrator

To register as a pension scheme administrator, you’ll need a Government Gateway ‘organisation’ account. If you do not have one, you can set one up by selecting ‘create sign in details’ and when asked what type of user you are, select ‘organisation’. You should do this even if you’re an individual registering as a pension scheme administrator as you will not be able to access the Managing Pension Schemes service through your Personal Tax Account.

When you log onto the Managing Pension Schemes service you’ll have the option to choose what type of scheme administrator you need to register as and you can then select ‘individual’ if this applies to you.

If you’re already registered as a pension scheme administrator using an ‘individual’ government gateway account rather than an ‘organisation’ government gateway account, you can continue to use the service as you are now. Please note you cannot access the service if you’re registered under an agent Government Gateway account.