UK Tax Update Report – October 2023

HMRC Tax Repayment and Pension Updates

The HMRC has provided a concise overview of key developments in the realm of pension schemes:

Tax Repayment Report (July to September 2023)

During this period, HMRC processed a substantial number of tax repayment claims for pension flexibility payments, including 12,007 P55 forms, 4,890 P53Z forms, and 1,954 P50Z forms. The total value repaid amounted to £61,305,602. Expect the next tax repayment figures for October to December 2023 in January 2024’s Pensions Schemes Newsletter.

Registration Statistics

From April to September 2023, HMRC received 831 applications for registering new pension schemes. Of these, 57% were registered, 12% were rejected, and decisions are pending for the remainder.

Managing Pension Schemes Service Event Report

The Managing Pension Schemes service now enables pension scheme administrators and practitioners to create, compile, and view event reports. This service is effective from the tax year 2023-2024 onwards. Note that schemes with PSTRs starting with ‘0’ must migrate to this service to submit event reports, except for specific events like scheme wind-ups.

Migrating Your Schemes 

Administrators should follow a two-step process: enrolment and migration. Ensure enrolment with the ‘Master’ ID or ‘A0’ administrator ID and migrate schemes as necessary.

Pension Scheme Return Transition

Starting from the tax year ending April 5, 2024, pension scheme returns must be submitted via the Managing Pension Schemes service, replacing the Pensions Scheme Online service. Compliance with the Finance Act 2004 will require more extensive information submission, and the obligation to submit may extend to additional schemes in the future.

Types of Pension Scheme Returns

Two types of returns exist: the standard return and the self-invested personal pensions (SIPP) return. The level of detail depends on the scheme’s size and encompasses members, contributions, assets, and transactions.

In summary, the HMRC’s report highlights these important updates in the pension sector, from tax repayment processing to the transition to the Managing Pension Schemes service and the forthcoming changes in pension scheme returns. Scheme administrators should stay informed and take necessary actions to comply with these evolving regulations.

Source: HMRC