The Registered Pension Schemes (Miscellaneous Amendments) Regulations, SI 2022/392, provide for the extension of scheme pays information and reporting deadlines where there has been a retrospective change of facts for a previous tax year.
Scheme pays allows an individual to require their pension scheme to pay their annual allowance tax charge, in certain circumstances, in exchange for a reduction in their pension pot. The regulations address a number of issues, including the following:
scheme pays will be available for the previous tax year where, due to a change of facts, the individual asks the scheme to settle their annual allowance tax charge;
the employer will be required to provide further information to enable the scheme administrator to correctly calculate a member’s pension input amount, and the administrator will be required to report that information to the individual and to HMRC; and
the period for an individual to notify their pension scheme that they need to amend their original notice to use scheme pays will also be extended.
Finance Act 2022 s 9 extended the period for individuals to give notice to their scheme administrator to pay the annual allowance tax charge (to up to six years from the end of the tax year); and also the notice periods for administrators to provide information about, and account for, an amount of annual allowance tax charge.
The Registered Pension Schemes (Miscellaneous Amendments) Regulations, SI 2022/392, provide for the extension of scheme pays information and reporting deadlines where there has been a retrospective change of facts for a previous tax year.
Scheme pays allows an individual to require their pension scheme to pay their annual allowance tax charge, in certain circumstances, in exchange for a reduction in their pension pot. The regulations address a number of issues, including the following:
scheme pays will be available for the previous tax year where, due to a change of facts, the individual asks the scheme to settle their annual allowance tax charge;
the employer will be required to provide further information to enable the scheme administrator to correctly calculate a member’s pension input amount, and the administrator will be required to report that information to the individual and to HMRC; and
the period for an individual to notify their pension scheme that they need to amend their original notice to use scheme pays will also be extended.
Finance Act 2022 s 9 extended the period for individuals to give notice to their scheme administrator to pay the annual allowance tax charge (to up to six years from the end of the tax year); and also the notice periods for administrators to provide information about, and account for, an amount of annual allowance tax charge.
