FT Adviser (07/05/2019) – The number of applications to register pension schemes with HM Revenue & Customs dropped 23 per cent last year, official figures have shown.
For 2018/19, HMRC received 1,925 applications in total to register new pension schemes compared with 2,486 in the year before, according to government data included in the latest HMRC pension scheme newsletter published on April 30.
Of these, 81 per cent have been registered and HMRC refused registration for about 11 per cent of applications. No decision has yet been made on the remainder, according to the newsletter.
HMRC stated it has seen an 88 per cent decrease in the number of applications to register pension schemes from 2012/13 until now.
This decrease could be the result of HMRC’s new restrictions to register small self administered schemes and the increasing popularity of master trusts, industry figures have said.
From last April HMRC was granted new discretionary powers to de-authorise Ssas schemes that do not have an underlying sponsoring employer.
It also implemented stricter requirements for schemes wishing to register.
Alan Chan, director at IFS Wealth & Pensions, believes the bulk of the reduction in numbers relates to the registration of new Ssas.
He said: “HMRC has introduced a more stringent registration process in the recent years mainly to tackle pension scams so there is now greater onus on members and trustees. This has led to a reduction in overall applications.
“I think we may continue to see a decline in the coming years due to increasing regulation and scrutiny.”
Full article link: https://www.ftadviser.com/pensions/2019/05/07/pension-scheme-registrations-drop-further/
