HMRC and TPR join forces to deliver webinar on pension scams 9 October 2020
HMRC and The Pensions Regulator (TPR) are working alongside one another, to deliver a webinar that will provide guidance for employers on the topic of how they can assist employees in avoiding falling victim to pension scams.
Unfortunately, the outbreak of coronavirus has seen the number of pension scams increase substantially, as fraudsters try and use the pandemic as an opportunity to prey on the most vulnerable in these uncertain times. The webinar will take place on Monday 12 October, between 11:15 and 12:15, and will explore how pension scams work, identify who is most at risk, and will also highlight what the key warning signs are. The Financial Conduct Authority (FCA) also provides a wealth of information designed to prevent savers from being duped by the range of pension scams that are currently in circulation. The overriding message is that individuals should take their time in making decisions relating to their pension, they should check who they are dealing with, reject any unexpected offers, and if possible, seek some impartial information or advice prior to making any decisions.
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The CIPP’s response to HM Treasury’s consultation: ‘Pensions tax relief administration: call for evidence’ 14 October 2020
HM Treasury published a consultation that ran from July to October 2020 that wanted to explore how two of the main methods of administering pensions tax relief work, and to seek feedback on how improvements could potentially be made. The CIPP’s Policy and research team, having collated the views and opinions of payroll professionals through a survey and a virtual thinktank roundtable, has submitted its response, which can be located here. The call for evidence was initially announced in March 2020, within the Budget, and its aim was to address the issue of how a low-earning individual’s net pay could potentially be affected solely on the basis of how pensions tax relief is provided through their pension scheme. In relief at source arrangements, pension contributions are taken from net pay, and the pension provider reclaims tax relief from HMRC, ensuring that individuals enrolled in pension schemes of that type receive pensions tax relief. In a net pay arrangement, however, pension contributions are deducted from gross pay. The current tax threshold is £12,500, whilst the auto-enrolment threshold is for earnings above £10,000, so anyone earning between those two amounts will not receive the pensions tax relief that they would if they had been in a relief at source pension scheme. To address the issue, the consultation sought feedback on how successful four different potential approaches could be. Amongst the key findings were:
• Respondents to the survey confirmed that within their businesses:
- - -
25% operate a NPA scheme
24% operate via a RAS
41% operate both NPA and RAS
The majority of members that attended the virtual roundtable event also confirmed that salary sacrifice pension schemes were also offered within their businesses
• In terms of the approach that survey respondents felt should be taken to resolve the issue:
- 35% favoured approach one – the payment of a bonus - 0% felt that approach two – applying a standalone charge to RAS schemes would be most effective - 30% showed preference for approach three – the operation of multiple schemes - 35% felt that mandating the use of RAS for DC schemes would work best
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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