Recruitment, Education & BusinessNewsCompulsory e-filing of pensions angers small businesses Compulsory e-filing of pensions angers small businesses
22/10/2007
E-filing pension administration came into force on October 16th, which means that all pension scheme administrators are now obliged to submit an array of information electronically. Submissions required include accounting for tax returns, applications to register a scheme, and event reports. But the Federation of Small Businesses (FSB) has criticised the new legislation, pointing out that forcing small businesses to file pension administration electronically should be a choice - not an obligation.
Many small businesses responsible for pension administration still work via postal and fax systems. E-filing will force many of them into making costly changes to working practices and equipment - simply to make the life of some civil servants easier.
Mike Cherry, FSB Financial Affairs Chairman, said: “Making electronic filing compulsory is going to add to the burden already faced by small business owners. It is always good to have new options, but this is a not an option, just another compulsory requirement from Government, in an ever-lengthening list that they have to follow.
“Business owners are not going to be encouraged to grow, or indeed have the time to dedicate to growth, when they are spending too much of their time having to conform to more red tape.”
For those who may be affected by this new legislation, here are some basic questions and answers, taken from the HM Revenue and Customs guidelines:
Q. What is e-mandation?
A. From 16th October 2007, it is mandatory for certain registered pension scheme information reports and returns to be filed electronically and in the prescribed format. This is known as e-mandation.
Q. What information has to be filed electronically?
A: • An application to register a pension scheme
• A Registered Pension Scheme Return
• An Accounting for Tax Return
• A Scheme Administrator's Declaration
• An Event Report
• Notification of Winding-up a Registered Pension Scheme
• Notification of Termination of a Scheme Administrator's Appointment
Q. What will happen if I submit any of the electronically mandated information on paper after 15th October 2007?
A. The paper form will be deemed as not received and will be returned to you for electronic filing.
Q. How do I use the online service?
A. You will need to register before you can use Pension Schemes Online. This is an online process which you can access via the HM Revenues and Customs website. It can take up to 7 working days as some information will be sent to you by post. Make sure you allow enough time to go through the process.
Q. When should I register to use the online service?
A. We recommend that you register to use Pension Schemes Online as soon as possible and, if practicable, before the month of January. HMRC receive a high volume in January for all its online services which may mean that the registration process takes slightly longer than usual. Early registration will ensure that you are ready to use Pension Schemes Online in advance of any filing deadlines.
Q. What happens if I want to file a return or report and the online service is unavailable?
A. You should keep trying until the service is available.
Q. What is the largest size of report or return that I can file online?
A. Providing the total size of the submission is less than 23.8 MB, you will be able to file online. This means that you can submit an Event Report containing up to 60,000 events and Pension Scheme Returns containing up to 30,000 supplementary pages. If you have a return or report larger than this, you will need to submit the information to HMRC using a CD. The information must be submitted in the prescribed format.
For further information on pensions e-mandation please visit the link below.