Online returns tweaked

Two changes will be implemented to HMRC’s pension schemes online from 6 April.

First, it will be possible to amend each online return - i.e. accounting for tax, event report and pension scheme return - up to 998 times.

Second, as a result of the 2009 Budget, the current 40% tax rate is being replaced with a 50% rate of tax. This affects the tax chargeable on short service refunds paid to members in excess of £20,000. This revised rate will apply from April 2010.

This is the first time that any tax rates on the accounting for tax return have changed since its introduction in April 2006. In an effort to make matters easier in the future, the Revenue is removing all tax rates from the AFT input screens and adding additional help to clarify the tax rate which applies to that field.

Issue: 4247 / Categories: News , Admin , Investments