It is important for trustees to process switches as soon as possible, because if member’s pension switches are delayed, and their investments fall in value during that crucial period, then the member’s cash equivalent transfer value will be lower. Trustees must still ensure that they carry out the required due diligence prior to any switches.
TPR also reminds trustees that they should be monitoring all pension switching activity and remain particularly alert and wary of potential scams, as fraudulent activity has increased significantly throughout the COVID-19 crisis.
TPR’s executive director of policy, David Fairs, said:
“The Covid-19 pandemic has created unprecedented challenges for pension schemes and their members. That’s why we’ve been constantly reviewing and updating our guidance to support trustees and protect savers.
Our latest guidance should help trustees of DC schemes prioritise what’s most important – such as ensuring DC to DC transfers are completed in a reasonable time, so savers don’t lose out."
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Filing deadlines and COVID-19 15 May 2020
Many CIPP members have been querying filing deadlines for items such as P60s and P11Ds during the coronavirus crisis, and whether they will be extended. HMRC has not extended any deadlines but decisions regarding whether penalties will be issued will be made on a case by case basis and HMRC will consider COVID-19 as a reasonable excuse for missing deadlines.
HMRC is still encouraging customers to adhere to these deadlines, and to fulfil their tax obligations where possible. Guidance provided on GOV.UK has, however, been updated to incorporate coronavirus.
In the guidance, ‘Disagree with a tax decision’, there is a section which discusses how appeals can be made against penalties if there is a reasonable excuse for submitting or paying a return late, which states:
“HMRC will consider coronavirus as a reasonable excuse for missing some tax obligations (such as payments or filing dates). Explain how you were affected by coronavirus in your appeal. You must still make the return or payment as soon as you can.”
The guidance also discusses timeframes for appealing tax decisions:
“If you or your business have been affected by coronavirus (COVID-19), HMRC will give you an extra three months to appeal any decision dated February 2020 or later. Send your appeal as soon as you can, and explain the delay is because of coronavirus.”
Employers should continue to meet deadlines where practicable and must provide sufficient explanation or evidence as to why items have been submitted or paid late, and after the required dates.
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Temporary tax and National Insurance exemption for coronavirus-related reimbursed home office expenses 15 May 2020 Financial Secretary to the Treasury, Jesse Norman, has confirmed that, in order to help employees working from home who have had to buy home office equipment as a result of the coronavirus crisis, and are reimbursed for it by their employer, there will be no associated tax and National Insurance (NI) liabilities to pay on those expenses.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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