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Pensions on-line
HMRC are developing a new information technology system to deliver an on-line service for tax registered pension schemes from 6 April 2006. Any pension scheme wishing to register with HMRC for tax relief and exemptions, will need to do so using the new on-line service, the 'Pension Schemes Service' and all registered pension schemes will be required to file pension tax forms and information on line as well as make payments electronically. Existing tax approved pension schemes will be deemed to be registered pension schemes from 6 April 2006, unless the pension scheme opts out of the new régime.
The new database will need to hold the same information for both new schemes registering from A day and existing tax approved pension schemes. The data required is:
- details of the scheme administrator;
- details of who established the scheme;
- the pension scheme name;
- the legal structure of the pension scheme;
- the number of members in the scheme in bands;
- whether or not the scheme has a member with the ability to control the use of scheme assets.
HMRC have consulted in depth with the pensions industry about how a limited data cleanse exercise of their current records might best be carried out. HMRC have decided to limit radically the information requested and to focus on supporting scheme administrators and practitioners with pre-registration for the on-line service. There are two stages:
- pre-registration at the Government gateway; and
- enrolment for the on-line service.
Enrolment for the on-line service can only be carried out by the administrator/practitioner once the new system goes live.
HMRC will be asking in the main self-administered schemes to provide details of the scheme administrator(s). This information will be used to pre-register them with the Government gateway. It will also be captured on HMRC's new database along with the relevant existing information they hold. The scheme administrator should check the details held when the new on-line service goes live in April 2006. HMRC will also ask if the scheme administrator would like to authorise HMRC to deal with a practitioner on the administrator's behalf. If so, that practitioner would be able to view the information on the on-line service and amend it if necessary on the scheme administrator's behalf.
In other cases, HMRC will not be requesting information from schemes, for example insured schemes, retirement annuity contracts, deferred annuity contracts and old code schemes. HMRC will cut across the relevant information held and pick up the additional data after 6 April 2006 as and when the reports and returns are filed on line in accordance with the legislation.
To help avoid a bulge of pre-registrations for the new service in April and May 2006, HMRC will be asking schemes likely to need to use the service soon after A-day, to provide this information before December 2005. HMRC are currently discussing with the pensions industry the detail of how the process for pre-registration will work and will provide an update on this in a future newsletter.
