This newsletter is published by HMRC’s Pension Schemes Services to update stakeholders on the latest news for pension schemes. Pension Schemes Newsletter 105 includes articles on:
- double taxation – bulk requests for certificates of residence
- relief at source pension schemes newsletter
- overseas transfer charge – draft regulations
- Manage and Register Pension Schemes service newsletter
- reporting of non-taxable death benefits.
Of particular interest in this newsletter is the commentary on pensions tax relief. As reported by the Payroll Centre, there have been difficulties around pensions tax relief with some individuals receiving tax relief twice and others are not getting the tax relief they’re due.
The newsletter provides information from HMRC and The Pensions Regulator as to why these errors might be occurring and what employers can do to rectify the problem.
“Where schemes give tax relief through the net pay arrangement, some member contributions have been made after tax and National Insurance has been deducted. This means the member will not have received the right amount of tax relief.
“Additionally where schemes give tax relief through relief at source, in some cases member contributions are being paid from their salary before tax and national insurance have been deducted. Under relief at source, basic rate tax relief on these contributions is then being claimed from HMRC. This results in the member getting too much tax relief.”
The newsletter signposts readers to the latest guidance on pensions tax relief and urges those who believe their pension scheme members have been given the wrong amount of tax relief to contact them.
HMRC states that it will work with employers to help correct the tax position and make sure the member gets the tax relief they’re due.
