A guide to pension savings statements

When it comes to self-assessment, what are the issues pension scheme members need to be aware of?
October 2019

Barry Foster

Vice President,
Strategic & Technical Sales

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Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone.

Key takeaways:

  • The information a pension savings statement contains
  • What happens after the money purchase annual allowance is triggered
  • What to do if a statement is not automatically issued by the scheme

When it comes to self-assessment, what are the issues pension scheme members need to be aware of?

Savings statements must be issued automatically by the scheme administrator if:

  • The individual is an active member for all or part of the pension input period and
  • Their pension input amounts under the scheme for the tax year are more than the annual allowance, or
  • The scheme administrator believes the individual has flexibly accessed a money purchase arrangement and the individual’s money purchase pension input amounts under the scheme for the tax year are more than £4,000.

 
The statement must be given to the member by 6 October following the end of the tax year.
 

Flexibly accessed benefits

If your client has accessed benefits flexibly and has ‘triggered’ the money purchase annual allowance, they should receive a flexible access statement from their scheme administrator.

Clearly, if benefits have been paid and a flexible access statement has been issued, then the scheme in question will be aware that the member is subject to the money purchase annual allowance. However, the individual may be a member of another scheme, or schemes.

Your client should notify their other schemes where they have accessed benefits flexibly and are still accruing benefits. They can do this by providing the scheme(s) with a copy of their flexible access statement.

Download our guide to learn more about the scheme administrator’s obligations when it comes to benefits and the protocols for self-assessment.

Risk Disclaimer

This content is based on our understanding of legal and tax regulations and practice at the time of writing (October 2019). It has been produced for information only. We do not provide tax, accounting, regulatory or legal advice. No action must be taken or refrained from being taken based on this content alone.