Since 6 April 2020, scheme members will have a reduced (‘tapered’) annual allowance if both: • the threshold income is over £200,000 (this was previously £110,000) • the adjusted income is over £240,000 (this was previously £150,000)
There is no tapered annual allowance if the threshold income for that year is £200,000 or less, no matter what the adjusted income is.
If the member is subject to the tapered annual allowance, where every £2 of adjusted income goes over £240,000, the annual allowance for that year reduces by £1.
From 6 April 2020 the minimum that this can reduce to is a tapered annual allowance of £4,000.
Geographical extent UK wide but with differences acknowledged to tax regimes in Wales and Scotland
CIPP comment The Pensions Industry Stakeholder Forum meet twice a year and recently held their April meeting by teleconference, the minutes are now published. The next meeting is to be held in October, please contact Samantha Mann, CIPP Policy and research technical lead, if you have any subjects you wish to put forward to the agenda samantha.mann@cipp.org.uk
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Countdown Bulletin 53 29 May 2020
The latest publication of Countdown Bulletin issue 53 there includes an update on issuing the final data cuts
HMRC has recently assessed the processes to be completed to allow the issue of the final data cuts and now plan to complete the issue of the data cuts by the end of July 2020. This timeline will be dependent upon the changing departmental priorities at present.
If there are any changes to this date, they will be communicated through the another issue of Countdown Bulletin.
If there is no delay to this timeline and your scheme has not received its final data cut by the end of July, you should contact the Customer Relationship Team by email to CRM.schemereconciliationservice@hmrc.gov.uk.
HMRC will only publish final data cuts for schemes that engaged with the Scheme Reconciliation Service or have been reconciled as part of the Scheme Cessation process.
On the subject of Guaranteed Minimum Pension (GMP), HMRC are aware of issues raised by pension scheme administrators, where differences have been noted between GMP amounts provided on final data cuts and GMP output by the online GMP checker service.
HMRC advise that on receipt of final data cuts you check the GMP amounts provided against your own records. In the event you disagree the GMP amount provided in your data cut you should use the online GMP checker service
If you cannot agree the GMP output from the online checker this can be queried with HMRC by submitting a query using the template in your Live Schemes Shared Workspace eRoom.
The National Insurance Services to Pensions Industry countdown bulletins provide additional guidance for pension scheme administrators on the ending of contracting-out in April 2016, you can access previous bulletins on Gov.uk.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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