HMRC has introduced a new digital service that will allow members who have new Annual Allowance charges or changes to Annual Allowance charges because 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 year 2022/23
The digital service also applies to other tax charges such as Lifetime Allowance charges and unauthorised payments charges.
Members affected by rollback and Annual Allowance do not need to resubmit a self-assessment tax return for any remedy period tax year or include an Annual Allowance charge on a tax return for tax year 2022/23.
We're recalculating the pension input amounts for members affected by rollback and Annual Allowance charges for each remedy period tax year and year 2022/23.
Once this is complete, we’ll send members a Remediable Pension Savings Statement (RPSS).
You’ll need your RPSS to use the HMRC Digital Service.
Getting a refund
The HMRC Digital Service will calculate any refunds owed to members.
You or your scheme administrator will be due a refund if a previous Annual Allowance tax charge paid has decreased as a result of the remedy.
You can make a submission for a refund through the 'Calculate your public service pension adjustment service'.
How the refund is made will depend on who paid the original charge.
If the decrease in the charge was between 6 April 2019 and 5 April 2023 and:
- you paid the original charge, HMRC will refund you directly
- your scheme paid the original charge, they'll contact HMRC for a refund
If the decrease in the charge was between 6 April 2015 and 5 April 2019 and:
- you paid the original charge, your scheme will contact you to arrange a refund
- your scheme paid the original charge, they'll use the compensation to increase your pension benefits
If you asked a private sector pension scheme to pay the original charge, you must contact the scheme to discuss this.