HMRC clarifies playback declaration requirements

HMRC has updated scheme guidance on claiming relief at source tax relief for member contributions, in order to emphasise the role of member playback.

The guidance states that the member, or their representative, must provide basic personal information and make certain declarations, including confirming that contributions made through relief at source will be within the total contributions limit.

Members, or their representative, should also confirm if they're no longer entitled to tax relief due to "an event that has occurred", and should confirm details by 5 April in the year of assessment.

The guidance, directed at scheme administrators, has been updated to clarify that if these declarations are not given in writing, or are provided by someone other than the member or their representative, then this information must be ‘replayed’ to the member, with the scheme making a declaration on their behalf, known more broadly as playback.

Scheme administrators must provide members with a copy of the declaration made on their behalf, as well as all the basic personal information that has been provided to date.

Members should then be given 30 days to review the information, with the scheme playback declaration taking effect from the date this information was sent, assuming no corrections are required and the member does not state that they no longer wish to become a member.

The guidance also clarified that a playback declaration should be undertaken where a member has automatically become a member of the pension scheme due to their employment, with the employer able to provide basic personal information and declarations on the members’ behalf.

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