HMRC has introduced a new digital service that will enable members who have new annual allowance charges, or changes to annual allowance charges as a result of rollback, to:
• reassess any previous annual allowance charges during the remedy period tax years
• make an application for a refund of any previously overpaid annual allowance charges for tax years 2019/20, 2020/21 and 2021/22
• make an application to claim compensation for any previously overpaid annual allowance charges for tax years 2015/16 to 2018/19
• pay any underpaid annual allowance charges for tax years 2019/20, 2020/21 and 2021/22
• pay an annual allowance charge for 2022/23
It will also apply to other tax charges such as lifetime allowance charges and unauthorised payment charges.
To use the service members will require a remediable pension savings statement.
We're recalculating the pension input amounts for members affected by rollback and annual allowance charges for each remedy period tax year, and 2022/23. Once this is complete, we’ll send members who are affected by rollback and annual allowance their remediable pension savings statement.
Members will receive one updated statement that will include their recalculated pension input amount for the remedy period tax years, plus any carry forward tax years that apply.
We’ll be sending the majority of active or deferred remedy members their remediable pension savings statement from April 2024 onwards.
More information on understanding the effect of rollback on annual allowance is available via our website. This includes information on the HMRC Digital Service, remediable pension savings statements, and 2021/22 and 2022/23 pension savings statements for members affected by the McCloud remedy.
We’ll continue to share more information on McCloud and annual allowance via this webpage as this becomes available. We’ll also be sharing more information on the NHS Cost Claim-back scheme which will allow eligible members to apply to claim back certain direct financial losses or tax losses linked to the McCloud remedy.
You can find all the latest information on our Changes to public service pensions web page.