HMRC pension scheme services update

02 January 2019

The guidance that was provided in Pension schemes newsletter 104 was incorrect on how to report death benefits that are entirely non-taxable and the use of starting dates.

HMRC apologise for the error and ahead of its next newsletter (106) at the end of January, has provided the following guidance for pension scheme administrators.

Reporting pension death benefits that are entirely non-taxable

Scheme administrators who followed the guidance in Pension schemes newsletter 104 and tried to report a starting date for these payments will have received an error message. HMRC now know that this is because when reporting death benefits that are entirely non-taxable, the starting date field should be blank when the scheme administrator submits their FPS. For these payments, the annual amount should be zero.

This applies to both lump sum death benefits and regular death benefit pension payments that are entirely non-taxable.

If scheme administrators have received an error message when reporting non-taxable death benefits, HMRC is asking for the scheme administrator to try to report this payment again but this time leaving the starting date field blank at the point of submission.

This message will also be included in Pension Schemes Newsletter 106 due for publication at the end of January 2019 and in the meantime, if scheme administrators have any questions, or have any ongoing issues in reporting these non-taxable pension death benefit payments please email [email protected].

Scottish Budget 2018 and relief at source for 2019 to 2020

On 12 December 2018, the Scottish Government announced that the Scottish Income Tax rates will stay the same for 2019 to 2020 and Scottish thresholds will rise in line with inflation. So for 2019 to 2020, there will be no change to how pension scheme administrators operate relief at source for Scottish taxpayers.

Scheme administrators should continue to follow the guidance HMRC provided in 2017. More information on this can be found on GOV.UK:

Use relief at source to reclaim tax relief given to your pension scheme members - GOV.UK

Pension schemes relief at source for Scottish Income Tax newsletter - February 2018 - GOV.UK


Questionnaire about the Accounting for Tax Return and the Event Report

s explained in the Manage and Register Pension Schemes service newsletter – December 2018, HMRC is now starting work on pension scheme reports and what these might look like on the new service.

With that in mind, if pension scheme administrators and practitioners could spare a few minutes to complete a short questionnaire on the Accounting for Tax Return and the Event Report, HMRC would be grateful.

Additionally, if any scheme administrators or practitioners are interested in taking part in user research on these subjects, they can email HMRC at: [email protected] and put ‘Manage and Register Pension Schemes service – user research’ in the subject line of their email.