The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Operating PAYE correctly on pension flexibility payments 5 July 2016
In the June edition of the Pension Schemes Newsletter (79) HMRC have provided a reminder for pension scheme administrators on the correct treatment for operating PAYE on pension flexibility payments.
Pension schemes newsletter 67 highlights 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. In cases where the fund has not been extinguished, we will then issue a tax code to operate against future payments. This applies to pension flexibility payments from 6 April 2016 onwards.’ Furthermore, HMRC also report Real Time Information (RTI) submissions from pension scheme administrators and providers who are not yet using data items 168, 171, 173 and 174 to report pension flexibility payments and pension death benefit payments. The Pension schemes newsletter 67 provided a reminder that these data items are mandatory where schemes have made these types of payments. Failing to complete the appropriate data items on RTI full payment submission, could impact on pension scheme customers who may contact HMRC to reclaim a repayment of overpaid tax. HMRC records will not show that a payment has been made and will not reflect that any tax is due back to the customer. If you need to access the pension schemes helpline the new number is 0300 123 1079. A number of old HMRC pension letters have the old telephone number (0845 600 2622) on them. Letters are being updated to replace this with the current helpline number.
The correct telephone number for the Pension Schemes Helpline is Telephone 0300 123 1079
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Making a request for Seafarers' NT Code (R44) 6 July 2016
HMRC have recently updated the guidance on GOV.UK for claiming a Seafarers NT code to include an online application process.
To request a Seafarers’ NT tax code if you want to claim to be provisionally entitled to Seafarers’ Earnings Deduction (SED) for at least 365 days you can either: use the online form service (sign in to, or set up a Government Gateway account) fill in the form on-screen, print it off and post it to HM Revenue and Customs (HMRC). If you use the online form, you’ll get a reference number that you can use to track the progress of your form. By processing this application you are asking HMRC to authorise your employer to make payments to you without deducting Income Tax.
The form must be completed, submitted and have been processed by HMRC before HMRC will consider issuing you with an NT tax code.
To complete the form you will need:
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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