spread the payments over a longer period (up to 3 years)
Ceasing work in the tax year and claiming a repayment – HMRC could review the extent to which form P50 is used by pensioners and its practicality in such cases. Determining pensioners’ PAYE codes and form P161
HMRC does not have the data necessary to carry out this review.
HMRC has recently reviewed the purpose of the form P161 and changed this into an Age Allowance request, as HMRC now receives information about State pension and occupational pension from elsewhere. The new version of the form was developed in consultation with customers and is now available.
HMRC changes also include a new electronic data link with the Department for Work and Pensions (DWP) to provide more accurate data on pensions. This means HMRC is able to update records more quickly, so that more pensioners are taxed correctly on state pensions. In addition, further work is ongoing to improve the process when someone suffers bereavement, and administrative forms for Married Couple’s Allowance are also being simplified following OTS input.
The OTS has gathered extensive evidence from pensioners, advisers, and representative bodies and has had considerable input from its consultative committee throughout its pensioner project. We continue to welcome views on our work from anybody with an interest in the areas under study.
HM Treasury press release
CIPP Comment The CIPP’s Karen Thomson has been involved with OTS, and specifically helping to identify ways in which the taxation for pensioners can be improved. It is encouraging to see the improvements HMRC has already implemented, and planned. A lot of work has continued with OTS and as HM Treasury state, the second of the reports is due next year.
REGULATING WORK-BASED DEFINED CONTRIBUTION (DC) PENSION SCHEMES
10 January 2013
The Pensions Regulator has today published Standards that defined contribution (DC) pension schemes should meet to increase the chance of individuals receiving good outcomes from their retirement savings have been. The standards have become necessary as recent pension reforms have raised the bar for the industry in areas such as the scheme governance and administration. It is anticipated that there will be an increase in pension savers of between 5 to 8 million individuals as a direct result of the introduction of automatic enrolment, many will have no previous experience of saving towards their retirement and further, the Standards recognise that the element of actively making an informed choice to join a scheme will no longer be the norm under Auto Enrolment. Chief executive of The Pensions Regulator Bill Galvin said: “We expect all DC schemes to demonstrate how they will comply with our principles for good DC schemes and this will give employers reassurance about their choice of scheme. “Members bear risks where DC schemes perform poorly. Many members will not have any experience of DC pension saving, so it's vital that schemes are run by capable people who act in members’ interests - from enrolment to retirement.
CIPP Policy News Journal
12/04/2013, Page 274 of 362
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