Guidance

Pension schemes newsletter 95 – January 2018

Published 31 January 2018

1. Pension flexibility statistics

The quarterly release of official statistics on flexible payments from pensions for the period 1 October 2017 to 31 December 2017 has now been published.

HM Revenue and Customs (HMRC) can now provide more information on the number of tax repayment claim forms processed for pension flexibility payments.

From 1 October 2017 to 31 December 2017 we processed:

• P55 = 5,310 forms
• P53Z = 3,597 form
• P50Z = 1,024 forms

Total value repaid: £20,562,071.

Figures for the period 1 January 2018 to 31 March 2018 will be published in April 2018.

2. Relief at source for Scottish Income Tax

a. Notification of residency status report

HMRC explained in the relief at source for Scottish Income Tax newsletter that we would send notification of residency status reports to scheme administrators of relief at source pension schemes. This information allows you to apply the correct rate of relief to your scheme members in the tax year 2018 to 2019.

We started to release the notification of residency status reports on 29 January 2018. You can now log into the Secure Data Exchange Service (SDES) to access your report as soon as it’s available.

If you’re logging into SDES for relief at source for the first time, you’ll be prompted to set your email notification address so that we can send future notifications by email.

You’ve 6 days to download your notification of residency status report (144 hours starting from when we make the report available to you for download) and we’ll also send you a reminder by email. You’ll need to download your report using the browser interface.

You need to tell HMRC as soon as possible by email: MDTSSETCustomerManagement@hmrc.gsi.gov.uk, if you:

• haven’t received your report by 31 January 2018 (and you haven’t already been contacted by us)
• can’t open your report because the file is corrupt
• didn’t download the report in time

If you haven’t enrolled for SDES, you won’t able to use SDES to submit your annual return of individual information for 2017 to 2018. You also won’t be able to receive a notification of residency status report in January 2019.

You can find more information about checking the residency status of your members in check a pension scheme member’s residency status for relief at source.

b. Annual return of individual information for 2017 to 2018 onwards

We explained in pension schemes newsletter 94, that when submitting your annual return of individual information for 2017 to 2018 onwards, you must not do this on paper.

We encourage you to submit your annual return of individual information electronically using SDES because this improves the security of the data and is easy to use.

Between April 2018 and April 2019 you can still submit your return by email, USB, CD or DVD. If you’re sending your information by post, make sure the media is securely packaged, password protected and sent by tracked post. You can find more information in pension administrators: relief at source annual information returns.

Over the next few months we’ll be working with scheme administrators to improve the format of the data submitted on the 2017 to 2018 annual return of individual information. This means we can match more members when we send you the next notification of residency status report in January 2019.

If you’d like our help with this email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘annual return of individual information 2017 to 2018’ in the subject line of your email.

You can find more information on how to format your annual return of individual information and structure the data lines, in the Registered Pension Schemes Electronic Flat Text File Specifications.

c.Scottish Income Tax newsletter

We’re planning to publish another newsletter on relief at source for Scottish Income Tax in mid-February 2018 to update you on our work and progress.

d. Scottish Budget

Her Majesty’s Government and HMRC are working closely with the Scottish Government and pension providers to explain how providing tax relief will operate for Scottish pension savers. This will depend on the Scottish Rate Resolution being agreed later in February by the Scottish Parliament.

We’ll update you on this as soon as possible.

e. Relief at source draft regulations

In pension schemes newsletter 94 we explained that we had published the Draft legislation: The Registered Pension Schemes (Relief at Source)(Amendment) Regulations 2018 for a short consultation.

This consultation has now closed. Thank you to those who responded on the draft regulations. We’ll consider the responses we’ve received and provide an update on the regulations in our next relief at source for Scottish Income Tax newsletter.

3. Updates to form APSS146E

HMRC has updated the form APSS146E application for a certificate of residence or certification of a tax reclaim.

This form is used to apply for a certificate of residence for a registered pension scheme, but you can now also use it to request certification of tax reclaim forms from overseas tax authorities.

We’ve updated the table on the form so that you can tell us whether you’re applying for a certificate of residence or a certification of tax reclaim form.

4. New pensions online service

a. Updating your scheme administrator details

In pension schemes newsletter 90 we explained that we’ll cleanse your data before we move your scheme and administrator details across to the new service. We asked you to log onto the pensions schemes online service as soon as possible and check that your scheme administrator details are complete and up to date.

Following this request we’ve noticed that some scheme administrators are registering duplicate schemes instead of updating their existing schemes and scheme administrator details online.

To avoid the registration of duplicate schemes we want to remind you that you can find information on how to update your scheme or scheme administrator details in the pension schemes online: user guide. Information on amending or updating scheme administrator details is in section 9.11 of this guide.

If you’ve lost your log in details contact our online services helpdesk.

b. User research

Thank you to everyone who provided feedback and helped with our user research so far. We’re using this in the design and development of the new service. Over the coming months we want to continue working closely with you to develop the new service.

We still need volunteers to test the service on a one to one basis. If you’re interested in helping us with our user research email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘user research’ in the subject line of your email.

c. Outstanding accounting for tax (AFT) charges

In readiness to migrate pension schemes to the new service, we’ve started to look at pension scheme accounting and have identified some outstanding AFT charges on the existing service.

We’ll be writing to scheme administrators soon setting out any outstanding AFT charges. If you receive a letter from us about outstanding charges that you think you’ve already paid, we’ll ask you to give us details of the payment you made. We can then allocate your payment against the right charge.

We’ll ask you to pay the outstanding amount. If your payment is or was late, we may charge you penalties under Schedule 56 of Finance Act 2009 and you’ll have to pay interest on the late payment.

You can help us with this by making sure that all payments you make contain the relevant charge reference number. You can find more information about paying tax to HMRC in pension schemes newsletter 92 and in the guide pension scheme administrators: how to pay tax.

5. Information powers and Schedule 36 of the Finance Act 2008

HMRC have received questions about our information powers for pension schemes. Paragraphs 34B and C of Schedule 36 Finance Act 2008 allow HMRC to issue third parties with an information notice about pension matters in specific circumstances. Approval from the tribunal or taxpayer isn’t needed.

You can find guidance on these provisions in the Pensions Tax Manual PTM169100.

6. Reporting of non-taxable death benefits

HMRC are working to resolve the problem of P6 tax coding notices being issued in error for death benefit payments that are entirely non-taxable. You should continue to follow the guidance we gave you in pension schemes newsletter 78 and we’ll keep you updated in future newsletters.

7. Changes to postal address

HMRC explained in pension schemes newsletter 86 that our postal address for Pension Schemes Services has changed. We are working to update our pension scheme forms with the new address.

To avoid any delays, write to us or submit any forms to:

Pension Schemes Services
HM Revenue and Customs
BX9 1GH

8. Feedback on pension schemes newsletters

HMRC is reviewing the pension schemes newsletter and would welcome your feedback. We’d like your views on:

• the content of the newsletter
• the level of expertise used in the content
• the content of the newsletter landing page
• the format of the newsletter, for example the way we group all articles about one subject together
• our newsletters that cover one subject, for example Scottish Income Tax

If you’d like to provide feedback on our pension schemes newsletters email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘pension schemes newsletters - review’ in the subject line of your email.