Pensions Tax Simplification Questions & Answers

Q Has HMRC reduced the scope of the Pension Schemes Online service?

A. No, the full Pension Schemes Online service will become available on a “just in time” basis from A day over a number of releases throughout 2006/07.

Q Will this prevent Scheme Administrators from carrying out their legal obligations in respect of tax?

A No, Scheme Administrators will be able to meet their statutory obligations and have the choice as to whether to file their information or returns online or by paper until the date for e-mandation is appointed which we won’t of course do until the online channel is available.

Q Why won’t there be e-mandation from April 06?

A. The Pension Schemes Online service will not initially be as comprehensive as originally intended. We are therefore offering greater flexibility to the industry to support them over this interim period.

Q On what date will HMRC make online filing mandatory?

A We will consider this in conjunction with representatives of the pensions industry.

Q Will this affect the current pre-registration exercise for Scheme Administrators?

A No, this is unaffected. Scheme Administrators will still be able to pre-register for the online service and authorise HMRC to deal with a Practitioner on their behalf, under the paper exercise (focused on self administered schemes) currently underway via Practitioners. This opportunity will remain open until 31 January 2006. Scheme Administrators will also still have the alternative option of pre-registering, registering and authorising a Practitioner online from 6 April 2006.

Q How will this affect online payments?

A The delay to Pension Schemes Online does not affect the making of electronic payments. It would be our preference to continue to seek payments in an electronic form. However we will explore with the Pensions Industry whether there are obstacles hindering them from making payments in this manner.

Q. Will I be able to do all my Pensions business with HMRC online at A-day?

A. No. But you will be able to register your pension scheme for tax relief purposes online at A-Day as well as comply with almost all your other statutory requirements at the time that you will be required to do so.

Q. What do you mean when you say that I will be able to comply with almost all of my statutory requirements?

A. The exception will be a small number of schemes that will wind up during the first few months of A day. The ability to return this event within the event report will not be available online until later in the year.

Q. If I want to report the wind up of a scheme when the online facility to do so in unavailable, what do I do?

A. You will have to make your report manually on a paper version of the event report.

Q What are the consequences of the IT becoming available over a number of releases for individual pension savers and pensioners?

A For the vast majority of people, the effects of this delay will go unnoticed. Individuals can continue to contribute to their pension schemes as before and pensioners will continue to receive their pension.

Q Can an individual still notify HMRC of their wish to protect their pre-A day rights from April 2006?

A Yes they can. They will need to make this notification using a pdf form that will be available on the HMRC website to download, print and complete.