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Employers are risking problems for their workers by entering 0.00 in the field for annual amount of occupation on the full payment submission (FPS) in cases where no occupational pension is paid, the Revenue has warned.
Employers are risking problems for their workers by entering 0.00 in the field for annual amount of occupation on the full payment submission (FPS) in cases where no occupational pension is paid, the Revenue has warned.
The field should be left blank in such cases; the erroneous use of 0.00 causes the occupational pension indicator on the taxman’is records to set incorrectly and has a knock-on impact for employees with student loan deductions, because it prompts an automated notification to the Student Loan Company, advising that an occupational pension being paid. The situation may result in the cessation of further student loan deductions, say HMRC.
The department has strengthened its guidance and intends to correct all instances of incorrect FPS submissions by the end of this month. Tax officials also plan to enhance their IT systems to prevent the problem occurring in the future. Affected employers need not contact the Revenue.
