HMRC have published their latest Pension Scheme newsletter (174 October 2025) aimed at pension scheme administrators.
The collection of pension contributions is not the same as being responsible for the pension scheme itself. Therefore, we recognise the information may not be relevant to members – though it is good to be aware the publication exists and we highlight the following topics:
- The first section deals with the wind-up of a pension scheme and the obligation for the administrator to declare this on an ‘Event Report’. Following this, HMRC will then send a notice to file a pension scheme return which must be submitted within three months;
- The second section details how all pension scheme administrators of a UK registered pension scheme will be required to be UK resident from 06 April 2026. This is a provision in Finance Act 2025 and the section says HMRC will provide more information on this change and what it means for existing non-UK pension scheme administrators in future newsletters;
- The third section concerns Qualifying Recognised Overseas Pension schemes (QROPS) and how pension scheme administrators and practitioners can take part in user research. Again, ICB advises you speak with your scheme administrator if you are impacted by QROPS;
- Following last month’s newsletter item, there is section devoted to the tax treatment for lump sums that have been paid free of a tax liability but are subsequently reinvested into pension pots. HMRC issued last month’s comment in parallel with one made by the Financial Conduct Authority (FCA). This details that when the lump sum is taken (free of tax), this situation cannot usually be revered. The statement has been made ahead of the UK Budget and much speculation that the Chancellor will changes the tax-free lump sum values that can be taken. If no such change is made, those that have taken lump sums may choose to repay the monies back into pension pots;
- There are two sections regarding the number of tax repayment claim forms processed for pension flexibility payments and applications to register new pension schemes; and, lastly,
- Confirmation that applications to register may show online, however, HMRC will send a letter to scheme administrators and they should wait until this is received before making contact
For Bookkeepers
October is another month where ICB is making members aware of the publication rather than giving any advice for action.
