HMRC has updated the online guidance on pension administration to clarify the new requirements for pensions administrators under the new Scottish personal tax regime.

Under current rules, pension scheme administrators do not need to do anything differently at the moment for Scottish taxpayers. Relief can still be claimed at source at the UK basic rate for all members. Until April 2018, any adjustments that might be needed will be made by HMRC through self assessment or through PAYE coding.

From April 2018, registered pension scheme administrators and pension providers will have to claim relief at source at the correct rate.

The system for higher or additional rate taxpayers will not change as a result of SRIT. Higher rate taxpayer will be able to claim any extra tax relief due through their tax return or by contacting HMRC. If the member is an additional rate taxpayer the extra relief will have to be claimed through their tax return.

Before claiming back basic rate tax relief on a member’s contributions pension administrators will  need the following information about the member:

• full name and address;
• date of birth; and
• national Insurance number - or a statement that they don’t have one (this information is not required if the member is under 16 or a non-UK citizen who isn’t living in the UK)

Details about the member’s employment status will also be required. The member will make declarations including one to tell their pension scheme if they make a contribution that does not qualify for tax relief.

Pension schemes normally collect all the required information and member declarations as part of the application form to join the scheme.

How to claim tax relief

Pension administrators have to register to claim tax relief either online when registering the scheme or later by completing form APSS 103 ‘relief at source details’.