Important update for Deferred Choice members.
Note: You are a Deferred Choice (DC) member if you were an active or deferred member of a Fire Pension Scheme on 30 September 2023.
You are a Deferred Choice beneficiary member if you are a beneficiary of a DC member who died on or after 1 October 2023.
A pension saving statement (PSS) provides information for a specific tax year to enable you to calculate any annual allowance tax charge.
If you had membership of the Fire 2015 scheme which was rolled back to your legacy scheme, this may affect your tax position in the remedy years 2015/16 to 2022/23. If you have breached the annual allowance in one or more of these years, by October 2024, you should have received a remediable pension saving statement (R-PSS) for each affected tax year.
Tax years 2015/16 to 2022/23
If you receive a R-PSS for one or more of these tax years and have a tax charge to pay then you must submit this to HMRC via the digital service by 31 January 2025 (or 3 months from the date you receive the R-PSS, if this is received on or after 1 November 2024).
Tax year 2023/24
If you think you may be due a tax charge you must self-assess by 31 January 2025, even if you have not yet received a PSS for 2023/24. In this case, you may have to give a provisional figure in your tax assessment.
Note:
- Because of the increase in annual allowance for 2023/24 it is expected that fewer members will get a PSS.
- There is guidance about using provisional figures in the Self-Assessment return.
If you make a self-assessment using a provisional figure:
- If you choose to pay the tax charge yourself (rather than using scheme pays) and you underestimate the tax charge, then the eventual corrected charge will include interest.
If you do not think you need to self-assess and later find that you have exceeded the annual allowance and have a tax charge:
- HMRC confirm that a penalty will be issued.
- You should then appeal and HMRC will accept that you have a reasonable excuse.
You have until 31 July 2025 to make a scheme pays election if applicable.