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Posted Tue, 26 Jul 2022 07:55:23 GMT by Lara Bowyer
Query A pension scheme member dies under the age 75 – leaving benefits exceeding 50% of the Lifetime Allowance and these benefits were paid out as tax free lump sum to the beneficiary. HMRC Legislation states such payments as these (even though they are a tax free payment) must be reported to HMRC using RTI. Is this sufficient to put through the payroll of the investment company administering the scheme to make the report under RTI along with the event report, which we understand is also required?
Posted Fri, 29 Jul 2022 16:35:25 GMT by HMRC Admin 10
Whoever paid the money must put this thorugh their payroll.
Posted Mon, 01 Aug 2022 09:44:13 GMT by Lara Bowyer
Thank you. So in this scenario, this would be the pension administrator making a payment to the beneficiary however, should we include the beneficiary details for the payment or the details of the person who has died?
Posted Tue, 09 Aug 2022 10:32:55 GMT by HMRC Admin 19

Yes, the beneficiary's details should be used.

Thank you.
Posted Tue, 09 Aug 2022 10:36:35 GMT by Lara Bowyer
Thanks - we had been previously told by HMRC that this should be the details of the person that passed away instead of the beneficiary. If you would please confirm that the details to be used are the beneficiary. see line 106
Posted Tue, 09 Aug 2022 14:18:56 GMT by HMRC Admin 17

It depends on what type of pension it is.

The answer I provided was based on 'term certain pension', from your original question it sound like this.

Apologies for any confusion.

I have had a further look at 'pension to be paid by the trustees of a pension fund' guidance and it has a section on 'if an employee dies'
This states to show the deceased employee's personal details on the FPS.

You advised it is the  pension administrator who is making the payment - i'm taking this to be trustee of a pension fund?

Alternatively, there is different guidance if the employer is making the payment.

I would suggest calling us at our Employer Helpline so we can discuss this with you, to ensure we are
fully understanding your enquiry and providing the correct advice.

Guidance mentioned above starts at section 2.2.2 in the CWG2 manual :

2022 to 2023: Employer further guide to PAYE and National Insurance contributions  .

Thank you.

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