PENSION SCHEMES NEWSLETTER 79
The 79th Pension Schemes Newsletter from HMRC leads with reminders about taxing and reporting pension flexibility payments:

1a. Pension flexibility payments: operating PAYE correctly

HMRC is aware that some pension scheme administrators are still treating pension flexibility payments as annual payments and calculating PAYE on a month 12 basis instead of week 1/month 1 basis.

These payments should be taxed using either the emergency code on a week 1/month 1 basis; or, where there is a current year P45, using that code on a week 1/month 1 basis.

In cases where the fund has not been extinguished, HMRC will then issue a tax code to operate against future payments.

1b. Data items 168, 171, 173 and 174

HMRC reminds scheme administrators

and providers that these data items are mandatory to report pension flexibility payments and pension death benefit payments.

Aries comment - There is an apparent direct contradiction of guidance given in the previous PSN (78) regarding data item 174, where HMRC pleaded with providers to "if possible, stop reporting these non-taxable death benefit payments . . .

01 July 2016   Check other news items


 REAL BENEFITS:

  SAVE TIME – SAVE MONEY
  – GET THE TURNROUND
 

 

Aries monitors every development in new and proposed legislation

Guidance on the meaning and impact of Pensions Legislation changes

25 Years experience working with over 100 top Pension Providers and UK Authorities

Clear and straight advice on putting Pensions Legislation changes into practice

Aries Insight gives the Big Picture and the Little Details

Ensure compliance with all Regulatory Requirements for Pensions

 
ARIES BENEFITS
INFORMATION
INSIGHT
INSTRUCTION
INFLUENCE
INCLUSION
INTEGRITY
OUR OFFER