HMRC Pension Schemes Newsletter 131

02 August 2021

HMRC has published the latest pension schemes newsletter – number 131, for July 2021, in order to update stakeholders on the latest news for pension schemes.

This instalment contains articles on:

•    Relief at source
•    Managing Pension Schemes service
•    Annual allowance
•    Non-taxable payments following a member’s death and Real Time Information (RTI) reporting
•    Pension flexibility statistics
•    Qualifying Recognised Overseas Pension Schemes (QROPS) transfer statistics

Below are just a couple of snippets from the newsletter, but we advise that you read the whole document in full, where possible.

Declaring the annual allowance charge on the Self-Assessment tax return

Any individuals who exceeded the annual allowance for 2020-21 and did not have enough unused annual allowance to carry forward, must declare this on their Self-Assessment tax return. The amount that the annual allowance for 2020-21 has been exceeded by must be recorded, regardless of who is paying it.

Box 10 on page Ai4 of the SA101 must be completed to show this amount, and this is also the case for people who have exceeded their money purchase annual allowance.

Where a pension scheme is paying some or all of an individual’s annual allowance charge, that person should enter the amount that the scheme administrator is paying on their behalf on page Ai4 of the SA101 (as, if this is not completed, the individual will be required to pay that amount) and include the pension scheme tax reference number in box 12 on page Ai4 of the SA101.

The deadline for Self-Assessment returns for 2020-21 to be submitted is 31 January 2022.

Guidance and help is available. The Pensions Annual Allowance calculator can be used to establish whether individuals are required to declare and pay an annual allowance tax charge, even in cases where they have not received a pension savings statement. There is information about the various types of annual allowance, and how any unused annual allowance can be carried forward here.

Pension flexibility statistics

Pension flexibility statistics will now longer be published on a quarterly basis, and instead will be released annually in September. Tax payments will continue to be published quarterly within HMRC pension schemes newsletters.

From 1 April 2021 – 30 June 2021, the following numbers of forms were processed:

•    6,907 P55 forms
•    1,970 P53Z forms
•    887 P50Z forms

The tax repayment figures from 1 July 2021 – 30 September 2021 will be include in the pension schemes newsletter October 2022.

Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.