The intention to publish a range of other tax policy documents was also announced at Budget 2020 but the government is considering each on a case-by-case basis, in light of COVID-19. The government aims to continue publishing some of these documents through Spring and Summer, and this includes the consultation on proposals for a National Insurance Contributions holiday for employers who employ veterans. The release of other documents will be delayed until the Autumn, and there are still additional documents that the government is yet to provide further detail on. The current position is that the additional detail will be released in due course.
The status of tax policy documents can be monitored via the public consultations tracker.
CIPP comment
As a result of the additional response times, the CIPP is exploring the possibility of creating surveys and holding virtual thinktank roundtable meetings for both the HMRC Charter Consultation and the Call for evidence on raising standards in the tax market.
Further information will be published on News Online in due course, but to register your interest in advance, please contact the Policy team at Policy@cipp.org.uk
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COVID-19 transfer warnings will be issued by pension schemes to savers 30 April 2020
The Pensions Regulator (TPR) has issued guidance which advises trustees to send Defined Benefit (DB) members, intending to move retirement funds, letters, to alert them to the risks of doing this during the outbreak of coronavirus, and to remind them to carefully consider the decision.
The letter should warn savers that a transfer from a DB to a Defined Contribution (DC) scheme is not likely to be in their best long-term interests at the current time.
Since 2015, pensions freedoms have allowed scheme members more flexibility in the ways in which they can access their pension. Last year alone, £34 billion was transferred from DB schemes, as many savers have made us of the new levels of flexibility. TPR is acutely aware that COVID-19 is causing substantial market volatility and uncertainty for both business and personal finances and is concerned that pension members might be making rash decisions which could have negative consequences on their pensions.
The Pension Regulator’s Chief Executive, Charles Counsell, said:
"We are determined to do all we can to protect savers' retirements from the unprecedented impact of COVID-19.
A decision to transfer a pension pot that’s taken a lifetime to build is a very serious one and we'd urge members to be very, very careful making any transfer decisions at this time.
That’s why for the foreseeable future, anyone who is looking to transfer their benefits out of their DB scheme should be sent a new warning letter to make them stop and think as well as point them towards free, impartial guidance available from The Pensions Advisory Service." In response to the coronavirus pandemic, TPR has issued guidance to assist schemes and employers in dealing with emerging risks and has provided trustees with advice in relation to how to communicate with their members. TPR is urging trustees to take a number of steps, including:
• Highlighting the free, impartial pensions guidance from Pension Wise, including phone appointments and online information
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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