Newsletter 151 바카라 사이트” June 2023
Published 30 June 2023
© Crown copyright 2023
This publication is licensed under the terms of the Open 바카라 사이트 Licence v3.0 except where otherwise stated. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
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This publication is available at /government/publications/pension-schemes-newsletter-151-june-2023/newsletter-151-june-2023
1. Annual allowance calculator
We told you in pension schemes newsletter 149 that we would update the annual allowance calculator to reflect the increase to the annual allowance, adjusted income and money purchase annual allowance for the 2023 to 2024 tax year.
We바카라 사이트™ve completed this work and your members can now use the calculator for the 2023 to 2024 tax year.
2. Abolition of the Lifetime Allowance 바카라 사이트” payment of stand-alone lump sums
Following the Spring Budget 2023 announcement that from 6 April 2023 the lifetime allowance charge would be removed, and fully abolished from the 2024 to 2025 tax year, we received feedback on the impact this would have on the payment of stand-alone lump sums (SALS).
The government has amended the to make clear that any amount of a SALS in excess of the 5 April 2023 maximum may still be paid to the member as a SALS and where there is an excess, this is subject to the member바카라 사이트™s marginal rate of Income Tax. We would like to thank stakeholders for their engagement with us on this issue and can confirm that Finance (No. 2) Bill has now completed report stage and third reading.
2.1 Lump sum taxation
Where you identify one of these lump sums, normal PAYE rules will apply to these payments where there is 5 April 2023 maximum excess.
If the member has a P45 in the current tax year from a previous source or employment and it바카라 사이트™s dated on or after 6 April 2023, you should operate the code on the P45 on a Month 1 basis and deduct the tax from the excess amount.
In all other circumstances, including where the member has a P45 from the previous tax year, you should use the emergency tax code on a Month 1 basis against the payment and deduct the tax from the excess amount. The emergency tax code for the 2023 to 2024 tax year is 1257L.
As these lump sums will be a one-off payment you바카라 사이트™ll need to issue a P45 to the recipient.
2.2 Lump sum reporting
In March 2023 we published a lifetime allowance guidance newsletter, setting out how the taxation of lump sums should be reported. The tax you deduct must be reported and paid through your payroll. Until changes can be made to the Real Time Information (RTI) programme to identify these separately, you바카라 사이트™ll need to use some existing data items from 6 April 2023. The following table shows what to enter for the different data items.
| Data item | Description | What to enter |
|---|---|---|
| 24 | Starting date | Enter the time of reporting the first payment to the recipient. Do not include the starting date if it has already been reported in an earlier submission. |
| 34 | Annual amount of the occupational pension | Enter the taxable amount of the lump sum paid. |
| 38 | Payroll ID | Include the payroll ID, if you want to use one. |
| 41 | Leaving date | Use the date of payment as the leaving date on their payroll record so this is sent to HMRC when you report your payroll information. |
| 41A | Taxable pay to date in this employment | Enter the total taxable element of the pension paid to date. |
| 41B | Total tax to date in this employment | Enter the total tax to date in this pension. |
| 42 | Pay frequency | Select 바카라 사이트˜One-Off바카라 사이트™. |
| 55 | Tax code operated on this payment | Use the emergency tax code on a 바카라 사이트˜Week 1바카라 사이트™ or 바카라 사이트˜Month 1바카라 사이트™ basis or where you have a current year P45, use that code on a 바카라 사이트˜Week 1 or Month 1바카라 사이트™ basis. |
| 58 | Taxable pay in this period | Enter the taxable pension in this pay period. |
| 58A | Value of payments not subject to tax and National Insurance contributions in pay period | Enter any non-taxable element of the pension payment for payments made by Bacs (Bankers Automated Clearing System). |
| 145 | Occupational pension indicator | Enter 바카라 사이트˜Yes바카라 사이트™. |
| 172 | Serious ill health lump sum indicator | Enter 바카라 사이트˜Yes바카라 사이트™. |
| 173 | Flexible drawdown taxable payment | Enter the taxable element of the payment. You must also include this amount in the 바카라 사이트˜taxable pay to date바카라 사이트™ and the 바카라 사이트˜taxable pay in this period바카라 사이트™ fields. |
| 174 | Flexible drawdown non-taxable payment | Enter the non-taxable amount of the payment. You must also include this amount in the 바카라 사이트˜non tax or National Insurance contributions payment바카라 사이트™ field 58A. |
We understand that it may take time to update your payroll systems to report this. You should do this as soon as possible and by no later than 30 September 2023. Until your systems are updated, you should still deduct the tax using the current year P45 for the member, or using the emergency tax code, on a Month 1 basis. Once your systems are updated, you must report and pay all tax deducted from payments from 6 April 2023 onwards and issue any outstanding P45s.
The 2023 to 2024: Employer further guide to PAYE and National Insurance contributions 바카라 사이트” CWG2 will be updated as soon as possible and we will provide an update in a future newsletter.
If you바카라 사이트™re unable to update your systems by 30 September 2023, contact us at ltaadministration@hmrc.gov.uk and put 바카라 사이트˜Lump Sum RTI Reporting바카라 사이트™ in the subject line.
3. Managing Pension Schemes service
3.1 Pension scheme migration
Take action to migrate your pension schemes now.
You should now migrate pension schemes from the Pension Schemes Online service to the Managing Pension Schemes service. This service will provide functionality making it quicker and easier for you to self-serve, make claims and fulfil all your pensions tax obligations.
As a scheme administrator, you must enrol on the Managing Pension Schemes service first.
You must enrol on the service using the 바카라 사이트 Gateway username and password for your existing 바카라 사이트˜A0바카라 사이트™ administrator ID. If you have multiple scheme administrator IDs, you must enrol on the Managing Pension Schemes service using the username and password for your 바카라 사이트˜Master바카라 사이트™ ID.
You can find more information on 바카라 사이트˜Master바카라 사이트™ and 바카라 사이트˜Ancillary바카라 사이트™ IDs in migrating your pension schemes to the Managing Pension Schemes service.
After you have enrolled you must migrate your pension schemes.
-
Sign in to the Managing Pension Schemes service.
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Select 바카라 사이트˜Add a pension scheme from the Pension Schemes Online service바카라 사이트™.
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Select each scheme you need to migrate and provide the information requested.
You can find further guidance on migrating your pension schemes to the Managing Pension Schemes service on 바카라 사이트.
3.2 Event report
We will release event report functionality for the 2023 to 2024 tax year on the Managing Pension Schemes service this summer. We will update you once it is live, in a future .
To submit any new event reports for the tax year 2023 to 2024 onwards, you바카라 사이트™ll need to migrate your pension scheme to the Managing Pension Schemes service and submit the report there. You can only submit your event report once the tax year has ended, unless you바카라 사이트™re reporting that the pension scheme:
- has wound up
- has become a master trust
- has ceased to be a master trust
If you need to submit a new event report or amend an existing event report for the tax year 2022 to 2023 or earlier, you can continue to do this on the Pension Schemes Online service.
3.3 Filing Accounting for Tax returns
If you need to submit an Accounting for Tax (AFT) return for the quarter 1 April 2023 to 30 June 2023, you바카라 사이트™ll need to do this by the filing deadline of 14 August 2023 to avoid interest and penalties.
If the pension scheme has a Pensions Scheme Tax Reference (PSTR) beginning with 바카라 사이트˜0바카라 사이트™, and you have not already done so, you need to migrate your pension scheme to the Managing Pension Schemes service to be able to file your return.
Find information on how to submit an AFT return using the Managing Pension Schemes service.
3.4 Pension scheme return
From April 2024, you바카라 사이트™ll need to submit pension scheme returns for the tax year ending 5 April 2024 on the Managing Pension Scheme service, instead of using the Pensions Scheme Online service.
To make sure you바카라 사이트™ve got enough time to do this, you should migrate your pension schemes to the Managing Pension Schemes service by April 2024 at the latest.
If you have migrated your scheme before April 2024, you바카라 사이트™ll receive a notice to file a pension scheme return, with a filing deadline of 31 January 2025. But if you migrate your pension scheme after 31 October 2024, notices to file for the tax year 2023 to 2024 will have a filing deadline of three months from the date of issue.
If you delay migrating your schemes further, notices to file for any applicable years will automatically be issued and backdated to the tax year 2023 to 2024.
For example, if you choose not to migrate your pension schemes to the Managing Pension Schemes service until 1 August 2026, you바카라 사이트™ll receive:
- a notice to file a pension scheme return for tax year 2023 to 2024 with a filing deadline of 1 November 2026
- a notice to file a pension scheme return for tax year 2024 to 2025 with a filing deadline of 1 November 2026
- a notice to file a pension scheme return for tax year 2025 to 2026 with a filing deadline of 31 January 2027
If we do not receive a pension scheme return by the specified filing deadline, you바카라 사이트™ll be charged a £100 penalty. We may also charge daily penalties of up to £60 if you still do not submit the return. You can find more information on reporting to HMRC.