• All Defined Contribution (DC) pension schemes must be operated on a relief at source basis, and not net pay arrangement. The government finds this to be an attractive option as it means one sole method of tax relief for DC savers. This call for evidence is UK wide and will be of interest to: • pension scheme administrators operating either the net pay or relief at source method of tax relief • employers who enrol their employees into a pension • individuals who receive pensions tax relief at a different rate to their marginal income tax rate • pension professionals and tax professionals • payroll administrators
CIPP comment
The CIPP is delighted to see publication of this Call for Evidence which we hope will rectify a long-standing issue. As members of the Net Pay Action Group (NPAG), we shall be submitting a joint response as well as an individual one on behalf of members. Please submit expressions of interest and comments to policy@cipp.org.uk.
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Managing pension schemes newsletter – July 2020 24 July 2020
HMRC has published the latest managing pension schemes newsletter, for July 2020. The aim of the newsletter is to provide an update for stakeholders in relation to the latest news on pension schemes.
The July 2020 edition includes an article which confirms that new accounting for tax features have been added to the Managing pension schemes service. This means that scheme administrators of this service now have the ability to submit an Accounting for Tax (AFT) return, make amendments to returns that they have submitted using the service, view what’s changed from the previously submitted version of the return, search their returns for members, and request payment refunds or reallocations relating to AFT returns that have been submitted via the Managing pension schemes service. In terms of submitting an AFT return, for those that have compiled and saved it for the quarter 1 April – 30 June 2020 on the Managing pension schemes service, they can now submit this return to meet the filing deadline of 14 August 2020. Once the AFT return has been submitted, administrators will receive an online notification to confirm receipt of this. There will also be the option to make amendments to any AFT returns that have been submitted through the service, if required. From 21 July 2020, administrators are also able to compile and save new AFT returns for the quarter 1 July 2020 to 30 September 2020, and once the quarter has ended, they can, too, be submitted. More information on submitting accounting for tax returns through the Managing pension schemes service can be located in the guide, Submit an Accounting for Tax return using the Managing pension schemes service. For schemes registered on the Pension Schemes Online service, the AFT will still need to be submitted through the Pension Schemes Online service and there are no amendments to the current process.
There are also articles on:
• Payments relating to accounting for tax returns submitted using the Managing pension schemes service • Phase two timeline • Migration of pension schemes to the Managing pension schemes service • Signing in to online services • How you can help • Further help and information
Read the newsletter in its entirety here.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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