This edition contains a number of reminders around end of year filing as well as drawing attention to a number of issues on which Aries reported here earlier. For example, a month ago we noted HMRC's new guidance for pension scheme administrators, on certain changes announced in the Pre Budget Report in October 2007 which are to be made retrospective to A-Day.

More recently, we reported on several new sets of regulations, viz.

• The Registered Pension Schemes (Authorised Member Payment) Regulations 2007 (SI 2007/3532)
• The Registered Pension Schemes (Meaning of Pension Commencement Lump Sum) (Amendment) Regulations 2007 (SI 2007/3533)
• The Employer-Financed Benefits (Excluded Benefits for Tax Purposes) Regulations 2007 (SI 2007/3537)

This Newsletter acknowledges an error we noted in Newsletter No 31. Under the information about the Pre Budget Report, in the section 'Inheriting Tax Relieved Pension Savings', in the third paragraph it stated that 'this is not to apply where the scheme has less than 20 members'; it should have said '. . . has more than 19 members'.

Pension scheme administrators are strongly urged to register to use Pension Schemes Online if they need to and haven't already done so, in advance of the 31 January filing deadlines for the Event Report and Registered Pension Scheme Returns. It can take up to seven working days to activate a new account as some information has to be sent by post. Newsletter No 30 provided information on what does and does not have to be filed electronically in the prescribed format. Don't forget to click on 'Submit this Event Report'; otherwise HMRC will not receive the Event Report, which may result in penalties

Conversely, the SA970 Tax Return for the Trustees of Registered Pension Schemes cannot be submitted electronically. This return can only be submitted on paper to Nottingham. For details of which schemes need to submit the SA970 please see the article in Newsletter 25.

The Pensions Regulator (TPR) is currently posting their Scheme Return notices to all registered occupational schemes, asking scheme trustees to register to use their new online system called Exchange. NB. This return is different to, and should not be confused with, HMRC’s Registered Pension Scheme Return. (Nor should the Exchange be confused with the part of Vertex Financial Services of the same name).

Also last month, HMRC warned pension schemes against using an artificial device to create a surplus through a member surrendering their pension rights, in order to allow funds to be extracted from the scheme tax-free. This is not an authorised surplus payment as defined by s.177 FA 2004 & SI 2006/574). A payment made in these circumstances is therefore an unauthorised employer payment, taxable at up to 70%. The scheme will, in addition, still be liable for the provision of the benefits 'surrendered'.