PTM167500 - Information and administration: pension savings statements: additional information given by third parties
Glossary PTM000001
Regulations 15A and 15B The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567
A scheme administrator may need information from a third party to enable the scheme administrator to calculate a member’s pension input amount, and so there is a requirement on such a third party (the ‘responsible person’) to supply information to scheme administrators. See PTM167400 for more details about this information requirement.
Providing additional information
Additional information that should be provided
For what tax years the addtional information should be provided
How the additional information should be provided
When the additional information must be provided
What happens if the additional information is not provided on time
What happens if incorrect additional information has been given
Providing pension savings statements
Providing pension savings statement-type information
Extended deadline for scheme pays notices
Providing additional information
Where a responsible person has supplied a scheme administrator with the information required to calculate a member’s pension input amount for a tax year (see PTM167400) and becomes aware that additional information is necessary for the scheme administrator to calculate the pension input amount correctly for that tax year, the responsible person is required to supply the scheme administrator with that additional information.
Additional information that should be provided
The legislation does not provide an exact list of the additional information that needs to be given to the scheme administrator. The requirement is that the scheme administrator is given such additional information that will enable the scheme administrator to recalculate the member’s pension input amount. PTM167400 has details of the sort of information a scheme administrator might require.
For what tax years the addtional information should be provided
The responsible person must provide the additional information for any of the current tax year and the 6 tax years immediately before the current tax year for which the responsible person has found that information is needed in addition to information already supplied by the responsible person to the scheme administrator for the tax year concerned.
For this purpose, the ‘current tax year’ means the tax year in which the responsible person becomes aware that additional information is needed in respect of information the responsible person has already supplied to a scheme administrator.
For example, a responsible person has provided information to a scheme administrator to enable a pension input amount to be calculated for tax year 2017 to 2018. In the 2023 to 2024 tax year, the responsible person becomes aware that the information already provided for 2017 to 2018 is insufficient to enable the pension input amount to be calculated correctly for that 2017 to 2018 tax year. As the 2017 to 2018 tax year is one of the 6 tax years immediately before the current tax year (the current tax year in this example being 2023 to 2024), the responsible person must give additional information to the scheme administrator to enable the scheme administrator to recalculate the pension input amount for the 2017 to 2018 tax year.
How the additional information should be provided
Additional information should be given to the scheme administrator automatically.
The legislation does not specify how the additional information should be provided to the scheme administrator. This is something for the scheme administrator to agree with the responsible person. In designing processes, the responsible person needs to bear in mind all of the following:
- the need for an audit trail - a responsible person needs evidence to satisfy the scheme and HMRC that they have complied with the requirement to provide the additional information
- the requirement to keep information set out at PTM160200.
When the additional information must be provided
The additional information must be given to the scheme administrator within 3 months of the responsible person becoming aware that information already provided is insufficient or, if later, on or before 6 July following the end of the tax year for which the additional information is required.
What happens if the additional information is not provided on time
Section 98(1) Taxes Management Act 1970
If the additional information is not supplied on time the person responsible for giving that additional information to the scheme administrator can be liable to the penalties described at PTM160800.
The person responsible for supplying additional information to the scheme administrator could themselves be dependent on getting information from another party.
What happens if incorrect additional information has been given
Section 98(2) Taxes Management Act 1970
The most important thing is to give the correct additional information to the scheme administrator as soon as an error has been identified.
Penalties can be given for supplying incorrect additional information in accordance with PTM160800.
Providing pension savings statements
Where a member’s pension input amount is recalculated for any of the current tax year and previous 6 tax years (see For what tax years the additional information should be provided above for what the current and previous 6 tax years means in practice) due to the scheme administrator receiving additional information from a responsible person for the tax year in question and the conditions for giving a pension savings statement to the member are met for that tax year, the scheme administrator must give the member a pension savings statement for that tax year.
The pension savings statement should be given by the scheme administrator automatically.
For more information on the deadlines for giving the pension savings statement see PTM167100.
Providing pension savings statement-type information
Recalculating a member’s pension input amount for any of the current tax year and previous 6 tax years (see For what tax years the additional information should be provided above for what the current and previous 6 tax years means in practice) due to the scheme administrator receiving additional information from a responsible person for the tax year in question might mean that the conditions for giving a pension savings statement are not met for the tax year in question.
However, the member may have already received a pension savings statement for that tax year as based on the pension input amount calculation without the additional information. Where this occurs, as based on the recalculated pension input amount, the scheme administrator must provide the member with updated pension savings statement-type information.
The pension savings statement-type information should be given by the scheme administrator automatically.
For more information on the deadlines for giving the updated pension savings statement-type information see PTM167100.
Extended deadline for scheme pays notices
Sections 237B and 237BA Finance Act 2004
Where a member has an annual allowance charge and certain conditions are met, they can give their scheme administrator notice that they want the pension scheme to pay some or all of their annual allowance charge liability on their behalf to HMRC, or ‘Scheme Pays’. PTM056410 onwards has more information about ‘Scheme Pays’.
A member with a recalculated pension input amount due to additional information provided to the scheme administrator by the responsible person may be able to use the extended deadline for giving a ‘Scheme Pays’ notice where:
- a responsible person gave information to the scheme administrator to enable the scheme administrator to calculate the member’s pension input amount for a tax year (as set out in PTM167400)
- the member’s pension input amount changed for the tax year due to a recalculation by the scheme administrator following the responsible person giving additional information to the scheme administrator (as set out above)
- before that changed pension input amount, the member had not met the conditions to use ‘Scheme Pays’ for the tax year in question
- because of the changed pension input amount, the conditions are met for the member to be able to use ‘Scheme Pays’ for the tax year in question.
For more information on the deadlines for giving a ‘Scheme Pays’ notice in these circumstances, see PTM056430.