HMRC offers assistance on the abolition of DB contracting-out

07/04/2014

With the introduction of the single-tier pension commencing in April 2016, together with the ending of DB contracting-out, HMRC has published its first in a series of Countdown Bulletins to assist employees, trustees and their advisers. The Bulletin can be found at the following link: http://www.hmrc.gov.uk/nic/count-bull-contract1.pdf

The current bulletin sets out a timeline which provides a summary of HMRC’s plans which will need to be followed in order to facilitate the ending of DB-contracting out.

In addition, the bulletin also contains the following:

From April 2014, in order to assist trustees and their professional advisers reconcile membership and GMP data against HMRC’s records, it will offer a scheme reconciliation service.
From 6 April 2014, employers will be under a legal duty to show the Scheme Contracting-out Number alongside the Employer’s Contracting–out Number, when registering NIC for employees who have been in a contracted-out scheme during the tax year.