Pension schemes newsletter May 21
A new pension schemes newsletter has been published by HMRC. The latest edition of the newsletter includes details of the following topics:
- Spring Budget 2021. The government announced that there would be no changes to the annual allowance limit that will remain at £40,000 for 2021-22. The lifetime allowance also remains unchanged for 2021-22 at £1,073,100 and will remain fixed at this level until 2025-26 as uprating in line with the Consumer Price Index has been cancelled.
- Temporary coronavirus changes. HMRC has reviewed a collection of temporary changes to various pension processes to help scheme administrators during the coronavirus pandemic. The temporary changes will now remain in place until 30 June 2021.
- Managing Pension Schemes service. The next release for the Managing Pension Schemes service will deliver practitioner registration and authorisation features. The new features are expected to be available from 16 March 2021. As with scheme administrator registration, practitioners will receive one practitioner ID for each Corporation Tax UTR or National Insurance number.
- Relief at source. Pension scheme members should by now have received their January 2021 notification of residency status reports. If they did not receive a residency report in January 2021, they can use HMRC’s residency status for relief at source service. This service allows users to check the residency tax status for single or multiple members or default to the UK basic rate for members.
- Increasing the normal minimum pension age. A new consultation has been launched on increasing the minimum pension age. This consultation reconfirms the government’s intention to increase the normal minimum pension age to 57 on 6 April 2028. The consultation will run until 22 April 2021.