SIPP RAS Annual Return

 

 

The need for the Relief at Source return

 

SIPPs have to submit an annual statistical return to HMRC every year. The return relates to each tax year and is due by 5th October following the end of the tax year. The department to which returns are submitted is HMRC Centre for Research and Intelligence (CRI) in Cardiff. These returns are separate from and in addition to the forms submitted to APSS in Nottingham. They are made in connection with the tax relief granted to contributions using the ‘Relief at Source’ method.

 

These returns have been made for many years but there have been minor changes with effect from 6th April 2007.

 

The specification of the content is set out in a document called ‘Submission of RPS Returns of Information - RPS Magnetic Media Specification’ dated 7th February 2007. Scheme administrators are required to make Returns of Information under Regulation 15(1) of The Registered Pension Schemes (Relief at Source) Regulations 2005 (Statutory Instrument 2005 No.3448).

 

The return can either be submitted by manually completing an A4 size form for each member of the SIPP or it can be submitted electronically.

 

Arrangements which have been transferred in or out during the tax year relating to the return should be included, as should any arrangement which has ceased during the tax year or subsequently.

 

Using Omni To Produce the Return

 

Omni has an additional module which allows the return to be submitted electronically. As long as the data has been stored in the Omni database, the return is a straightforward, quick process. Before running the return program, various data checks should be run.

 

Action to Take Before Running the Omni SIPP Return Program

 

Omni can check for Critical Errors (outlined below) but it cannot determine whether incorrect amounts have been entered. Before running the SIPP Return Module, we recommend that the database is verified as fully as possible. We recommend that all of the listings included with the XL Reports program are run, the results are checked and the database is updated to reflect any issues.

 

The most important listings for this purpose in XL Reports are:

 

  1. Scheme Tab – Scheme Data Missing
  2. Member Tab – Member Data Missing
  3. Member Tab – Members Without Funds Allocated
  4. Bank + Transactions Tab – Transactions Not Posted
  5. Bank + Transactions Tab – Transactions Not Imported

(especially Contributions, Transfers-in, Transfers-out and Unknown transactions)

 

 

Running the Omni SIPP Return Module

 

Run the ‘SIPP RAS Annual Return’ option from the Reports menu. When it is run, the first screen has 2 options:

 

1.                   Check data for critical errors

2.                   Produce Return Submission.

 

When the ‘Check Data for critical errors’ button is clicked, the program checks through all members in the SIPP and produces a list of errors in the database that will stop the return being submitted. It checks to see whether data is missing but Omni cannot determine whether incorrect amounts have been entered – it is just checking for errors that will prevent the return being submitted and not all errors.

 

Critical Data Errors

 

An Excel spreadsheet is produced listing the errors. Common errors and their causes are:-

 

1.                   No fund value within period. A value of the SIPP fund has to be stored (and split) at a date from 6th October to the 5th October either side of the end of the tax year e.g. for the year ended 5th April 2007, the fund value needs to be stored at a date from 6th October 2006 to 5th October 2007 inclusive. Ensure the fund has been split at a date in that period in the ‘Members, Contributions and Funds’ screen.

2.                   Missing Fund Split. The split needs to be calculated even for a 1 member SIPP.

3.                   Missing Address Data. The full address for each member needs to be stored in the Scheme Address Book.

4.                   Missing Postcode. A valid postcode has to be included.

5.                   Missing Forename(s). There must be at least 1 forename stored in the Scheme Address Book.

6.                   Missing Sex.

7.                   Missing/Invalid Date of Birth.

8.                   Missing/Invalid NI Number.

 

 

Checking the data after critical errors

 

Once the critical errors have been corrected for a member, the spreadsheet will show the details that will be submitted on an extra tab in the workbook called ‘Members’. This shows the data that will be submitted but HMRC will not accept this spreadsheet as a valid submission. The intention is that you can check to see that the data is reasonable. We suggest that you check a sample of members in detail to ensure that all information for that member is correct. We also suggest that you check that the totals are reasonable. There are many global checks that you could do; for example, the total of the contributions should be consistent with the data submitted for claiming tax relief.

 

Produce Return for Submission

 

When finalising the return a header is generated which tells HMRC the basic details of the SIPP wrapper itself and the format of the data file. These general details can be added or amended via the ‘System, SIPP Wrapper Data’ menu option in the main Omni program.

 

Omni produces a file in the format specified by HMRC. The file will not be in a readable format but it will contain the information for HMRC’s software to read it.

 

This file is then sent on a disc to the address specified on the notice that the SIPP operator will have received from HMRC.

 

July 2007