Guidance

Pension schemes newsletter 108 - March 2019

Published 29 March 2019

Relief at source

Enrolling for secure data exchange service (SDES)

From 6 April 2019, we will only accept relief at source annual returns of information for any tax year that you submit using SDES. Similarly, in January each year you can only access your notification of residency status report through SDES. As we’ve explained in previous pension schemes newsletters, if you have not already enrolled for SDES you should do so as soon as possible.

The SDES enrolment process will take a few days to complete and it’s important when you enrol that you complete all the steps in the process, including sending us a file transfer schedule as below of the annual return of information files you intend to submit through SDES.

Giving HMRC your SDES file transfer schedule

This is to remind you that if you’ve enrolled for SDES but have not already sent us the file transfer schedule for your annual return of information, you must email this to us as soon as possible to MDTSSETCustomerManagement@hmrc.gov.uk.

As we explained in our Relief at source pension schemes newsletter - September 2018 you must keep your details up to date on SDES. If the reference number for the annual return of information you want to submit is not on your file transfer schedule or you do not have a file transfer schedule, we’ll be unable to receive or process your annual return of information. This means that we’ll still deem your annual return of information as outstanding, it may have an impact on repayment of relief at source and we will be unable to give you your January 2020 notification of residency status report.

Annual return of information for 2018 to 2019

In relief at source pension schemes newsletter – February 2018 we reminded you that we’ll be making changes to the spreadsheet and electronic flat text file specifications for the annual return of information for 2018 to 2019 onwards. We’ve now published the 2019 version of both the spreadsheet and electronic flat text file alongside the existing 2018 versions on GOV.UK.

We know some pension scheme administrators may not be able to make changes to their systems in time to submit their 2018 to 2019 annual return of information (due by 5 July 2019) on the new 2019 version. So, for 2018 to 2019 you can choose to submit your annual return of information on either the new 2019 version of the relief at source spreadsheet or using the new 2019 version of the Electronic Flat Text File Specifications or by using the existing 2018 versions. The technical specifications for 2019 mirror the draft specifications that we published in Appendix A of the Relief at source pension schemes newsletter – September 2018.

January 2020 notification of residency status report and 2018 to 2019 annual return of information

The notification of residency status report that we send you in January 2020 will be based on the new annual return of information, even if you submit your annual return of information for 2018 to 2019 to existing specifications. We are sorry that we have not been able to tell you this sooner.

You can find both the 2018 and 2019 versions of the relief at source annual return of information spreadsheet and electronic flat text file specifications in our GOV.UK guide Send a relief at source annual information return for your pension scheme members.

As we explained above, from April 2019 you’ll be able to choose which version of the relief at source spreadsheet or electronic flat text file specifications to use to submit your annual return of information.

The new 2019 specifications for the annual return of information have columns added and deleted and we’ve renamed some columns.

Because of changes to the new 2019 specifications for the annual return of information, we also need to make corresponding changes to the notification of residency status report to include the new and amended fields, as well as remove some fields.

So your January 2020 notification of residency status report will follow the format of the new specifications for the annual return of information.

If you send in your 2018 to 2019 annual return of information based on the 2019 specifications or spreadsheet – the information we provide in your January 2020 residency report will be in the same format.

If you send in your 2018 to 2019 annual return of information based on the 2018 specifications, your January 2020 notification of residency status report will follow the format of the new specifications for the annual return of information, so it will look different to what you submitted.

If you can, you should update your IT systems so that you can use the January 2020 notification of residency status report. We know that this may not be possible and if you’re unable to do this you can use our service to look up the residency status of your members. You can do this for single members, or you can use our bulk look up service.

If you’re unable to do either of these, you should use the ‘rest of UK’ residency status as a default for your members for the 2020 to 2021 tax year.

From April 2020 onwards, we’ll only accept your annual return of information based on the new specifications, so factor this in when you’re looking at your IT systems and processes relating to relief at source.

If you have any questions email us at reliefatsource.administration@hmrc.gsi.gov.uk and put ‘relief at source - January 2020 notification of residency status report’ in the subject line of your email.

Updates to relief at source forms

APSS103 - Pension schemes: relief at source details

We’ve made some amendments to the APSS103 form to incorporate the notes within the form instead of publishing these as a separate document. We’ve made other minor changes to this form.

APSS105 - Pension schemes: registered pension schemes relief at source interim claims

Further to the draft APSS105 that we published in the Relief at Source Pension Schemes Newsletter – September 2018 we’ll be publishing the new version of the APSS105 form on 6 April 2019 and we’ll include information about what you need to fill in, on the landing page of the form.

APSS106 – Pension schemes: registered pension schemes relief at source annual claims

Further to the draft APSS106 that we published in the Relief at Source Pension Schemes Newsletter – September 2018 we’ll be publishing the new version of the APSS106 form on 6 April 2019 and we’ll include information about what you need to fill in, on the landing page of the form.

APSS590 – Annual return of information declaration

We have published the APSS590 – Annual return of information declaration that you must submit as part of your annual return of information. You can either send this by post or email this to us at reliefatsource.administration@hmrc.gsi.gov.uk and put ‘APSS590 – Annual return of information declaration’ in the subject line of your email.

Updates to the existing electronic flat text file specifications

We’ve published some minor amendments to the existing 2018 version of the relief at source Electronic Flat Text File Specifications mainly to:

• remove reference to submission by paper or other electronic media
• update the date
• include the new requirement to submit a declaration

In part 2.3 we’ve made small updates to our guidance to highlight the naming convention that you should use if you’re submitting your annual return of information to the 2018 specifications.

Guaranteed Minimum Pension (GMP)

A working group is being formed to consider the pension tax issues arising as result of GMP equalisation. The group, which will be chaired by HMRC and include selected industry representatives, will work alongside other industry groups who are looking to address the wider issues arising from the equalisation of GMP. The first meeting of the group will take place in April 2019. We’ll continue to provide further updates and information in future pension schemes newslettters.

Master Trust update and an introduction to supervision

The authorisation application window for existing Master Trusts closes on 31 March 2019. The Pensions Regulator (TPR) has published a list of schemes that have been authorised so far and this will be updated on an ongoing basis.

If you’re setting up a new Master Trust, you must apply for and obtain authorisation before you can operate.

Once a Master Trust is authorised, TPR will supervise it on an ongoing basis.

Master Trusts will need to satisfy TPR through the supervision process that they continue to meet the authorisation criteria and other legislative requirements. The process is designed to provide early identification of any material risks and issues.

You’ll receive an introductory letter from TPR on supervision if your Master Trust has been authorised. TPR will then write to you again after it has assessed all authorisation applications, to provide more detail about:

• the supervisory cycle for your Master Trust and other practical information, for example whether you will be assigned a dedicated supervisor
• the specific information you’ll need to send TPR
• how often you will meet or have a call with TPR
• what sort of management information you should expect to send to TPR on a regular basis

Supervisory activities for all Master Trusts will include periodic scheme evaluations, reviewing significant event and triggering event notifications, and reviewing submissions such as scheme funder accounts and the supervisory return.

You can find out more about Master Trust supervision on TPR’s website.

Managing Pension Schemes service

Adding scheme administrators to your scheme

We want to remind you that if your scheme was registered through the Managing Pension Schemes service and you want to invite another scheme administrator to be added to your scheme, you must check that the scheme administrator you’re inviting has enrolled onto the Managing Pension Schemes service before you invite them.

If they have not enrolled for the Managing Pension Schemes service, you’ll receive an error message when you try to add them as a scheme administrator to your pension scheme.

To invite them you’ll need:

• their scheme administrator ID
• the name they used when they registered as scheme administrator

After you’ve invited the new administrator they’ll have 30 days to accept your invitation.

If they do not respond to your invitation within 30 days, the invitation will be automatically withdrawn.

What you’ll need if you’re enrolling for the Managing Pension Schemes service

If you’re registered as a scheme administrator on the Pension Schemes Online service and need to access the new Managing Pension Schemes service, you must enter your scheme administrator details again when you enrol for the service.

You can find a list of the information that you’ll need to enter as a company, individual or partnership in the guide Register as a pension scheme administrator in the section ‘How to register’.

Reporting on Pension Schemes Online service

Saving and returning to your return or report before submitting

We want to remind you that if you’re compiling a return or report on the Pension Schemes Online service you can save your progress and return to it at a later date without submitting this. To do this, you will need to navigate out of the report or return, either by clicking on the cross in the top right hand corner of the screen, or selecting another link in the service.

When you navigate back to the home screen, or log back in to the service, you’ll then see the report or return as an incomplete task with an expiry date, and you can select continue to make more entries before you submit it to HMRC.

Finding your charge reference for an accounting for tax (AFT) return

We’ve been asked by scheme administrators how to find a charge reference for an AFT. When you submit an AFT return you’ll automatically get a unique charge reference. Your charge reference will be 3 letters followed by 11 numbers. If you make a payment in relation to a pension charge, assessment or penalty you must quote the charge reference so that we can correctly allocate the payment and so that you do not receive a demand notice from our Debt Management team for a charge that you’ve already paid.

Once you’ve submitted an AFT return you’ll still be able to access the charge reference for each quarter at a scheme level. You can view this on your account in Pension Schemes Online by selecting ‘Accounting For Tax’ under reporting. You can find further guidance on how to view your charge reference in section 8.15 of the Pension Schemes Online: user guide.

If you do not have a charge reference and you want to make a payment on account, quote the Pension Scheme Tax Reference (PSTR) for the scheme.

If you make one payment which covers a range of different charge types you should contact us in writing to make sure that the payment is correctly allocated.

Annual allowance calculator

As part of our annual updates we’re amending the annual allowance calculator so from the 6 April 2019 this will include the 2019 to 2020 tax year.

We’re adding in the 2019 to 2020 tax year so that any members of defined contribution schemes who make their total contributions early in the tax year can work out their annual allowance tax charge. Other members can use the annual allowance calculator after the end of the tax year when they know what their total pension savings will be.

If your members use the calculator before they know their 2019 to 2020 total pension savings, the calculator will produce a default result for that year. The calculator will also produce a default result if your members have not selected the 2019 to 2020 tax year.Your members should disregard this default result, but they can take the results for 2018 to 2019 and earlier years from the table in the calculator.