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Pension administration - it could be you

HM REVENUE AND CUSTOMS News Release (NAT 44/07) issued by The Government News Network on 11 July 2007

HMRC is urging employers and individuals who have set up their own pension scheme to check who their pension scheme administrator is, and make sure they are aware of their responsibilities.

If you have set up your own scheme - rather than just joined an existing scheme - using an insurance company, bank or other provider, in some cases they will not be the legal scheme administrator - it could be you.

All pension schemes must have at least one scheme administrator, and they have certain legal responsibilities, for example:

* making returns of information to HMRC where required;
* providing information to members; and
* paying certain tax charges if they arise.

If you're not sure who your scheme administrator is, HMRC suggests you contact your scheme provider directly in the first instance. If you still need help, visit the HMRC website at http://www.hmrc.gov.uk/pensionschemes. Finally, if that doesn't answer your questions, contact HMRC's Pensions Helpline on 0115 974 1600.

For further information on the role of the scheme administrator, HMRC has produced a short fact sheet available at http://www.hmrc.gov.uk/pensionschemes/scheme-administrator-facts.pdf

Julie Elsey, HMRC's Head of Pension Schemes Services, said:

"Even the smallest pension scheme must have a scheme administrator, and they need to be aware of their responsibilities. If you're not sure who this is, find out now, to avoid any problems in the future."

Notes for editors

1. The Scheme Administrator is responsible for fulfilling several different functions, including:

* registering the pension scheme with HMRC;
* operating tax relief on contributions under the relief at source system;
* reporting events relating to the scheme and the Scheme Administrator to HMRC;
* making returns of information to HMRC;
* providing information to scheme members, and others, regarding the lifetime allowance, benefits and transfers; and
* paying certain tax charges.

2. A Scheme Administrator can appoint a Practitioner to act on their behalf in relation to some of their duties.

3. Under the new simplified pensions tax regime, introduced in April 2006, there are three new reports and returns that the Scheme Administrator of a registered pension scheme is responsible for submitting to HMRC: the Accounting for Tax Return; the Event Report; and the Pension Schemes Return. The Accounting for Tax Return is a quarterly tax return, and only needs to be submitted where certain tax charges have been deducted by the scheme during that quarter. The Event Report is an annual report that only needs to be submitted by 31 January if certain events - that are set out in the Registered Pension Scheme (Provision of Information) Regulations - have occurred during a tax year. The Pension Scheme Return is an annual return that only needs to be submitted by 31 January by scheme administrators if they receive a notice to file this return from HMRC.

4. It is expected that less than 20 per cent of all pension schemes will need to submit any of the above reports or returns in any tax year, and for most insured pension schemes they will never be required to submit a report or return to HMRC, except when the scheme winds-up.

5. Reports and returns can be filed online either using HMRC's free software or third party software via HMRC's Pension Schemes Online service. (Visit http://www.hmrc.gov.uk and click on 'Pension Schemes' under the 'Do it Online' menu.)

Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk