Residency status of pension scheme members for relief at source 8 May 2018
HMRC has updated guidance to provide clarification for administrators that when they use relief at source to reclaim tax relief given to pension scheme members, they are required to tell HMRC about how many repayment claims are for Scottish and rUK rate taxpayers, and the amounts for each.
Excerpt from the updated guidance:
“ Use the correct residency status of your members for relief at source
As part of your interim and annual repayments claims for relief at source, you must tell HMRC:
• the numbers of UK and Scottish rate taxpayers • as separate amounts, how much you’re reclaiming for UK and Scottish rate taxpayers
For your scheme members who are Scottish taxpayers liable to income tax at no more than the Scottish starter rate of 19%, or who pay no tax, you’ll continue to claim relief at 20% for these individuals. HMRC will not recover the difference between the Scottish starter and Scottish basic rates and you must not give relief at 19% to these members. Your scheme members who are Scottish taxpayers liable to income tax at the Scottish intermediate rate of 21%, can claim the additional 1% relief due on some or all of their contributions above the 20% tax relief paid to you. You must not give relief at 21% to these members. Instead, a member will do this by contacting HMRC if they do not already complete Self Assessment returns, or through their return if they do.”
Use relief at source to reclaim tax relief given to your pension scheme members
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Pension schemes newletter 98 09 May 2018
HMRC’s latest pension scheme newsletter contains information about the launch of the Manage and Register Pension Scheme which has been delayed by a few weeks. The delay is because the full development and testing of the service is slightly behind schedule. The service will be available on 4 June 2018 and until then the current Pension Schemes Online service will now be available until 6pm on Friday 1 June 2018. Pension flexibility payments and Scottish Income Tax
Also in the newsletter HMRC explains that the normal PAYE rules apply to these payments.
The newsletter is published by HMRC’s Pension Schemes Services to update stakeholders on the latest news for pension schemes. Topics also covered in this newsletter are:
• Pension flexibility statistics • Registration statistics • Annual allowance calculator • Lifetime allowance additional member functionality • Relief at source for Scottish Income Tax • Trust Registration Service • Reporting of non-taxable death benefits
Pension Scheme Newsletter 98 – May 2018
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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