HMRC has released its latest pension schemes newsletter 103 for September 2018.
This month’s addition looks at operating Pay As You Earn (PAYE) on pension payments. It highlights that, if you pay pension benefits, subject to PAYE, to your members on a quarterly basis, these payments need to be reported correctly through Real Time Information (RTI).
If you use your member’s tax code on a cumulative basis, you should use the table for month 3 for the first payment that you make in the tax year, even if the payment is made in an earlier tax month.
You should then use the table for month 6 for the second payment and so on. If you use the code on a week 1 or month 1 basis, use the table for month 3 for each payday.
Employers using payroll software to report payroll information through RTI should check that these quarterly payments are being correctly reported.
You can find more information in the Pay Adjustment Tables and in the CWG2: further guide to PAYE and National Insurance contributions.
Other topics covered in the pension schemes newsletter include: updating your scheme administrator details; Master Trusts; reporting of non-taxable death benefits; relief at source; annual allowance – pension savings statements for tax year 2017 to 2018; and the Trust Registration Service.
