Guidance

Newsletter 170 — May 2025

Published 29 May 2025

Pension scheme return

Pension scheme administrators and practitioners can now use the Managing Pension Schemes service to create, compile and submit their pension scheme return, for the 2024 to 2025 tax year onwards.

You can read more about the launch of the pension scheme return in Pensions schemes newsletter 168.

If your pension scheme has a Pension Scheme Tax Reference (PSTR) beginning with 0, and you have not already done so, you will need to migrate your pension schemes to the Managing Pension Schemes service.

This is so, if you receive notice to file a pension scheme return for the 2024 to 2025 tax year, you can compile and submit this by the deadline.

File upload for the self invested personal pension (SIPP) pension scheme return

For a pension scheme that needs to submit a SIPP pension scheme return, you need to upload member details and asset data by CSV file only. You cannot do any of this manually for this type of pension scheme return.

The XLSX file templates are available on the Managing Pension Schemes service. You need to complete a different XLSX file for each asset type.

You must not amend, remove or re-format the first or second row on the template once you have downloaded them. The upload will not work if you amend them.

After completing the templates, you must save and upload them as CSV files.

If you would like an example of a completed template containing asset data, email administrationpensions@hmrc.gov.uk with the subject line ‘SIPP PSR Example Template’.

Migrate your pension schemes

Migrating to the Managing Pension Schemes service allows you to see all your schemes in one place and benefit from real-time updates so that you can immediately see changes, view submitted information as well as details of payments and charges.

You can view a list of your open pension schemes registered on the Pension Schemes Online service, on the Managing Pension Schemes service, before you migrate.

You’ll need to enrol on the Managing Pension Schemes service to migrate your pension scheme before you can view the list of schemes.

Once enrolled, you should then select ‘Add a pension scheme from the Pension Schemes Online service’ and select each scheme you need to migrate. You should not select ‘Apply to register a new pension scheme.’

Only pension schemes with a status of ‘open’ on the Pension Schemes Online service will be included on your list of schemes to migrate. If you can see schemes on your list that are inactive and should be wound up, you should email: migration.mps@hmrc.gov.uk and put ‘Managing pension schemes — Wound Up Schemes’ in the subject line.

UK resident pension scheme administrators

In Pension Schemes Newsletter 164 — October 2024 we confirmed that with effect from 6 April 2026, all pension scheme administrators of a UK registered pension scheme will be required to be UK resident.

What this means for existing non-UK pension scheme administrators

If you’re a pension scheme administrator of a pension scheme with a status of ‘open’ on the Managing Pension Schemes service or the Pension Schemes Online service, and you’re the only pension scheme administrator of the pension scheme — you will need to appoint a UK resident administrator before 6 April 2026 and add them to your scheme on Managing Pension Schemes service, the Pension Schemes Online service, or both.

If you’re registered as a pension scheme administrator on the Managing Pension Schemes service but you have never been an administrator of a pension scheme on the service, you should de-enrol from the service. You can do this by logging in to the Managing Pension Schemes service and selecting ‘stop being a pension scheme administrator’.

If you’re registered as a pension scheme administrator on the Managing Pension Schemes service and are no longer the administrator of a pension scheme with a status of ‘open’ on the service, you should de-enrol yourself from the service. You can do this by logging in to the Managing Pension Schemes service and selecting ‘stop being a pension scheme administrator’.

If you’re a pension scheme administrator of a pension scheme with a status of ‘open’ on the Managing Pension Schemes service and there is another pension scheme administrator attached to the scheme that is UK resident, you should remove yourself as a pension scheme administrator on the pension scheme no later than 5 April 2026. You can do this by logging in to the Managing Pension Schemes service, selecting your pension scheme from your list of schemes and selecting ‘view or remove scheme administrator’. Once you’ve done this, you should de-enrol yourself from the service. You can do this by logging in to the Managing Pension Schemes service and selecting ‘stop being a pension scheme administrator’.

If you’re registered as a pension scheme administrator on the Pension Schemes Online service, but you have never been a pension scheme administrator of a pension scheme on the service, you should email: pensions.administration@hmrc.gov.uk and put ‘Non-UK PSA — cease’ in the subject line so we can remove you from the service.

If you’re registered as a pension scheme administrator on the Pension Schemes Online service and are no longer the pension scheme administrator of a pension scheme with a status of ‘open’ on the service, you should email: pensions.administration@hmrc.gov.uk and put ‘Non-UK PSA — cease’ in the subject line so we can remove you from the service.

If you’re a pension scheme administrator of a pension scheme with a status of ‘open’ on the Pension Schemes Online service and there is another pension scheme administrator attached to the scheme that is UK resident, you should remove yourself from the pension scheme no later than 5 April 2026. You can find information on how to do this in section 6.13 of pension schemes online user guide. Once you’ve done this, you should email: pensions.administration@hmrc.gov.uk and put ‘Non-UK PSA — cease’ in the subject line so we can remove you from the service.

If you’re a pension scheme administrator of a pension scheme with a status of ‘open’ on the Managing Pension Schemes service or the Pension Schemes Online service, and you’re address uses a UK mailing address or UK c/o address, this does not itself make you a UK resident pension scheme administrator. You will need to appoint a UK resident pension scheme administrator before 6 April 2026 and add them to your scheme on the Managing Pension Schemes service, the Pension Schemes Online service, or both.

If you have appointed a practitioner to act on your behalf for a pension scheme on either service, this appointment will automatically cease when you remove yourself as scheme administrator. To continue to be an authorised practitioner for the scheme, they will have to be appointed by a UK resident pension scheme administrator acting for the pension scheme.

Lifetime allowance

Lifetime allowance abolition — lump sum reporting

In Pension schemes newsletter 167 we provided details on how to report pension commencement excess lump sums and stand-alone lump sums, explaining the importance of reporting them under a different payroll record (payroll ID) to the one being used for any regular ongoing source of pension income.

We are aware that not all lump sums are being reported in this way and have been asked to provide guidance on how to correct the individual’s tax record.

Guidance on GOV.UK for correcting payroll errors has now been updated and gives instructions on the process you should follow if you have incorrectly reported a lump sum on a regularly paid pension source.

The guidance has also been updated to reflect what you need to do to correct a:

• flexibility payment
• death benefit payment
• pension commencement excess lump sums payment
• stand-alone lump sums payment

This applies where you have reported the wrong pay or deductions or need to amend pay or deductions previously reported.

Authenticated look up service to confirm protections and enhancements ― how you can help us

In Lifetime allowance guidance newsletter — December 2023 we told you that in 2025 we will be moving the lifetime allowance protection look-up service onto the Managing Pension Schemes service. We aim to do this by December 2025.

This will allow us to provide additional information to pension scheme administrators and pension scheme practitioners, about whether the protection that a member has informed them they are relying on, for a higher lump sum, is valid. We will also update the service to include if a member holds an enhancement as well as protections.

Later this year, we’ll be asking you to help us develop this feature. If you would like to be involved, email pensionsuserresearchrecruitment@hmrc.gov.uk and put ‘look up service’ in the subject line.

Relief at source

Payments

We are working on improving the payment process for relief at source pension schemes. The aim is that from April 2026 we will start to process forms APSS105 and APSS106 on the Managing Pension Schemes service.

You will continue to receive payments in the same way as you do now, but there will be a considerable reduction in the time between a claim being received and processed, and receiving a payment.

There will be no change to the existing process for submitting claims and you will continue to send HMRC forms APSS105 and APSS106 as you do now.

To prepare for this, you’ll need to migrate your pension schemes to the Managing Pension Schemes service, if you have not already done so. You’ll need to enrol on the Managing Pension Schemes service before you can migrate your scheme.

For any consolidated relief at source claims, where a single relief at source reference is used to claim relief at source for more than one pension scheme, each pension scheme will need to be registered under an individual relief at source reference. 

If you submit consolidated claims, we have contacted you separately regarding registering each of these individual schemes for relief at source. If you submit consolidated claims and have not heard from us, email reliefatsource.administration@hmrc.gov.uk and put ‘Consolidated Claims’ in the subject line.

If this change affects you and you would like to know more, we are holding a virtual relief at source Collaboration Forum on 4 June at 10am. If you are not a member of the forum but would like to join, email pensionsprogramme@hmrc.gov.uk and put ‘RAS Collaboration Forum’ in the subject line.

Annual return of information for 2024 to 2025

We want to remind you that the deadline for submitting the 2024 to 2025 annual return of information is 5 July 2025. If you do not submit this on time, it may delay:

• payment of interim claims for the tax month ending 5 July 2025
• payment of any claims for subsequent months until we receive your annual return of information

You must make sure you submit the APSS590 annual return of information declaration with your annual return of information, as this forms part of your return. Without it, your return will fail processing.

You can either:

• send the APSS590 annual return of information declaration by post to the address given on the form
• email the APSS590 annual return of information to reliefatsource.administration@hmrc.gov.uk and put ‘APSS590 Annual return of information declaration’ in the subject line

If you submit your annual return of information but it fails processing, we will:

• still consider this to be outstanding
• stop any subsequent interim repayment claims until we receive a resubmission

If failure occurs on the third submission, we will stop all future interim claims until we receive a resubmission that is considered successful.

You can only submit your 2024 to 2025 annual return of information through the Secure Data Exchange Service.

Qualifying recognised overseas pension schemes

APSS262 form

In section 9 of the Lifetime allowance guidance newsletter, published December 2023 we told you that from April 2025 we were introducing a new feature that will allow you to submit the APSS262 form on the Managing Pension Schemes service.

User research on this feature is still taking place and we now aim to release this later in the year. We’ll keep you updated on progress in future newsletters.