Pension schemes newsletter 83
15 December 2016
The latest Pension Schemes Newsletter has been published by HMRC which contains updates and guidance on pension schemes.
Serious ill-health lump sums - reporting through Real Time Information (RTI) - delay
One of the items in Pension schemes newsletter 83 refers to the September newsletter (81) which explained that the tax treatment of serious ill-health lump sums changed following Royal Assent to Finance Bill 2016. HMRC is currently working on the RTI amendments which will include a separate field for serious ill-health lump sum payments to individuals over 75 but the RTI system won’t be updated straight away.
HMRC said that this new field was due to be released in December however they won’t be able to publish details of this until early in 2017. They are aware that this may cause problems in designing and developing software so to help with this, whilst it is still mandatory that you report serious ill-health lump sum payments, it will not be mandatory to report these payments using the RTI data field until 6 April 2018.
Another noteworthy item reports that from April 2017 QROPS online will no longer be accessible. Changes to QROPS forms in recent years mean that the system no longer captures the correct information so HMRC are closing QROPS online.
For further details on these two updates and for other important news, read Pension schemes newsletter 83.