Occupational Pensions: Tax Allowances

Treasury written question – answered on 4th November 2019.

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Photo of Baroness Altmann Baroness Altmann Conservative

To ask Her Majesty's Government how many (1) employers, and (2) pension scheme members, have received too much tax relief due to incorrect pension contributions being made as a result of confusion between (a) Relief at Source, and (b) Net Pay, arrangements.

Photo of The Earl of Courtown The Earl of Courtown Captain of the Queen's Bodyguard of the Yeomen of the Guard (HM Household) (Deputy Chief Whip, House of Lords)

Employers have not been given too much or too little tax relief as employers do not receive tax relief under net pay or relief at source (RAS) arrangements.

The information about members is not readily available in the form requested and could only be provided at disproportionate cost.

Errors made by employers and pension providers have resulted in pension scheme members receiving either no tax relief on their pension contributions, or receiving tax relief twice.

In the Pension schemes newsletter 105 (November 2018), HMRC invited pension schemes who think that any of their members have been given the wrong amount of tax relief to email HMRC. HMRC would then work with the scheme to help correct their tax position.

HMRC is continuing to work with the pension schemes that have informed if an error has been made, but is unable to give more detail of these cases as this could prejudice future HMRC compliance activity.

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