RPSM08300100 - Scheme Administrator Pages: Pension age: Do I need to make a report to HMRC of payment of ill-health benefits?

Do I need to make a report to HMRC of payment of ill-health benefits?

If benefits have been paid

• on the grounds of ill-health or
• as a serious ill-health lump sum

to a member who was at any time in one of the following categories, you must complete the on-line Event Report and send it to HMRC after the end of the tax year in which the payment was made. You can do this using Pension Schemes Online on the HMRC website.

The report must be completed where the member receiving the payment is

1. a participator, director or an associate of a participator or director of a close company that either

• is or was the sponsoring employer or
• is or was an associated employer; or

2. whether alone or with others, the sponsoring employer, or
   
   
3. a person connected with the sponsoring employer.

Reporting suspension of ill-health benefits

You also need to complete an Event Report and send it to HMRC if you suspend payment of an ill-health pension in accordance with your scheme rules and the guidance at RPSM08300090. Regulation 5 of The Registered Pension Schemes (Provision of Information) Regulations 2006 [SI 2006/567] requires that a report is submitted for any member to which this applies (it is not restricted to those in categories a. b. and c. above). This report is not required where an ill-health pension is only reduced.

Failure to make a report may result in a penalty.