Pension schemes newsletter 79

30 June 2016

HMRC are aware that when making pension flexibility payments, some pension scheme administrators are still treating these as annual payments and calculating PAYE on a month 12 basis instead of week 1/month 1 basis. Flexibly accessed payments are not annual payments. You should tax these payments using either the emergency code on a week 1/month 1 basis or, where you have a current year P45; using that code on a week 1/month 1 basis.

The newsletter also highlights that the Finance Bill 2016 will receive Royal Assent later than usual this year.

In recent years the Finance Bill has received Royal Assent in the July after its publication. As the Public Bill Committee consideration of the Finance Bill 2016 is only due to conclude on 14 July, Royal Assent will be later this year.

Other topics in Pension schemes newsletter 79 - June 2016 include the Annual Allowance, change of scheme details, the Lifetime Allowance and pension scheme transfers.