Understanding the effect of rollback on annual allowance

Before you can check with HMRC, you will need your RPSS. This is a letter that gives you information about your revised pension growth and your pension input amounts in both the 1995/2008 and 2015 Schemes, for all the tax years affected by the remedy.

If you need an RPSS, we will automatically send it to you.

The complexity and scale of the Public Service Pensions Remedy has meant it is taking us longer than we planned to get an RPSS to everyone who needs one. We sincerely apologise for this delay, and we are working hard to deliver them as soon as possible.

For any other members who need an RPSS but have not received one yet, we expect to have sent the majority by the end of February 2025, though there are a small number of members who will need manual calculations, which may take longer. We are working closely with our suppliers to be able to offer an on-demand request service. We’ll update this page as soon as this service is available. 

If your pensionable service between 1 April 2015 and 31 March 2022 was always in the 1995/2008 Scheme there is no change to your pension input amounts. This means you do not need an RPSS, and you do not need to check your tax position with HMRC.

If you have not yet received one, you can request a Pension Savings Statement (PSS) for the tax year 2022/23.

If you retired before 1 October 2023, you will not receive an RPSS until after you have been contacted to choose which benefits you want for the remedy period. The government has designed the remedy so that you only get an RPSS if you need one, depending on the benefits you choose when we contact you to make your choice.

Timings for when you can expect to receive your choice are currently under review, and we will update our Public Service Pensions Remedy page when these timings are confirmed. If your decision means you need to update HMRC about your pension tax position, we will send you an RPSS at the time.

The figures included in your RPSS are based on the information given to NHS Pensions by employers. If something does not look right, please check with your employer.

Your RPSS shows you:

• any updated pension input amounts in both the 1995/2008 Scheme and 2015 Scheme
• your old pension input amounts in both schemes
• any annual allowance charges you asked the scheme to pay on your behalf to HMRC using ‘Scheme Pays’

Where we have the information to calculate your pension input amount for the tax year 2022/23, we’ll include this information in your RPSS, and you will not receive a separate Pension Saving Statement (PSS).

You’ll need the information included in your RPSS to use the HMRC 'Calculate your public service pension adjustment' tool, specifically designed to support members affected by the Public Service Pensions Remedy.

The HMRC tool has been developed to help you:

• submit information for HMRC to review and check if your pension tax position has changed because of the remedy
• work out any reduced annual allowance charge you have previously overpaid
• work out any new or extra annual allowance charges that you may have to pay
• apply to claim compensation from the scheme for any previously overpaid annual allowance charges that you have paid directly to HMRC for tax years 2015/16 to 2018/19
• apply to claim a refund from HMRC of any previously overpaid annual allowance charges that you have paid directly to HMRC for tax years 2019/20 to 2021/22
• apply to update a Scheme Pays arrangement for any previously overpaid annual allowance charges that you asked the scheme to pay to HMRC for tax years 2015/16 to 2021/22
• automatically update your Self-Assessment tax return information with any pension tax changes during the remedy tax years of 2015/16 to 2021/22
• pay an annual allowance charge for tax year 2022/23

Members who use HMRC tool will not have to include an annual allowance charge on their Self-Assessment tax return for the tax year 2022/23. 

The tool also has a lifetime allowance section for members who retired before 1 October 2023. If this is you, you will not know whether you need to use the tool until you have been contacted to choose the benefits you want for the remedy period.

We will update our Public Service Pensions Remedy page with the timings for when you can expect to receive your choice and when you will need to use this part of the tool.

Step 1

Visit the HMRC 'Calculate your public service pension adjustment' tool.

Step 2

Complete the first section of the tool to understand whether your tax position is affected. This is a maximum of 10 questions asking for ‘yes’, ‘no’, or ‘don’t know’ answers. Most members will be able to answer these questions themselves, without needing professional support from an accountant or Independent Financial Adviser (IFA). If your tax position is not affected, the tool will tell you, and there is nothing more you need to do.

We've created an infographic to summarise the next steps once your receive your RPSS:Infographic - What to do once you have your RPSS (PDF: 148KB)

You should also download our RPSS Guide:

RPSS Guide (Word:1.6MB)

This has been created to:

• explain why you have been sent a remediable pension savings statement
• take you through the figures on each page of your RPSS
• highlight how the figures fit in with the HMRC 'Calculate your public service pension adjustment' tool, specifically designed to support members affected by the Public Service Pensions Remedy (also known as McCloud)
• highlight the next steps that you may need to take

Your sign-in options

You can use your government gateway user ID and password to sign in before you use the tool. If your pension tax position has been affected and you need to use the tool in full, you will be asked for a lot of information and it will take time to complete. Signing in means you can save your information and return to it later, and you will only have to submit your information once.

If you do not have one, you can create a government gateway user ID by visiting the HMRC website.

If you do not sign in, you can still use the tool, but you will not be able to save your information. If you need to use the full tool beyond the first section, and if you need to make a claim to HMRC, you will have to sign into the tool later and resubmit all your information again.

Step 3

Once you have reached the Check your answers page, press Continue – the next screen will confirm whether you must go on to use the tool in full to submit your updated information. You can either do this yourself or ask an accountant or IFA to help you.

Make sure you have all the documents you need to hand. As well as your RPSS, you’ll need:

• a copy of your SA302 tax calculation for each tax year – to request these, visit the HMRC SA302 support page or email publicservicepensionsremedy@hmrc.gov.uk and put 'SA302 request' in the subject line
• a pensions savings statement for each tax year affected from any other pensions you have outside of your NHS Pension – you need to contact your other pension providers if you do not have these

Step 4

If you complete the HMRC tool on your own, the calculation results page will tell you at the end if you have:

• an annual charge to pay (tax years 2019/20 to 2022/23)
• overpaid an annual allowance charge and are entitled to:
  • compensation equal to a refund of annual allowance charge (tax years 2015/16 to 2018/19)
  • a refund of annual allowance charge (tax years 2019/20 to 2021/22)
  • an adjustment to your Scheme Pays arrangement (tax years 2015/16 to 2021/22)

Step 5

If you are signed in and the calculation results page says you have overpaid an annual allowance charge, you’ll be asked for your bank details if you paid the original charge yourself to HMRC from 2019/20 to 2021/22, and HMRC will refund you the amount of charge overpaid.

If you did not pay the charge direct to HMRC, there is nothing else you need to do – HMRC will automatically update NHS Pensions and we’ll write to you to confirm that your Scheme Pays arrangement has been amended.  

If the overpaid charge was for a tax year from 2015/16 to 2018/19 HMRC will automatically update NHS Pensions, and we’ll contact you.

Step 6

If you are signed in and the calculation results page says you have an annual allowance charge to pay, this could only be for a tax year from 2019/20 to 2022/23. HMRC will ask you how you want to pay the charge. If you want to pay the charge yourself, HMRC will explain how to do this.

If you want to use Scheme Pays you do not need to do anything else – HMRC will automatically update NHS Pensions of your decision, we’ll pay the charge to HMRC and then write to you to confirm your Scheme Pays arrangement has been updated.

Step 7

If you are not signed in and need to pay an annual allowance charge, you can sign in and follow the previous steps from Step 3.

To use the HMRC 'Calculate your public service pension adjustment' tool on your behalf, your accountant or IFA will need access to information in your RPSS, your SA302 for each affected tax year and any pension input amounts you have for those tax years in a pension scheme outside the NHS Pension Scheme.

If you’ve used an accountant or IFA to use the HMRC tool and have an annual allowance charge that you want the scheme to pay, you should complete a Scheme Pays Election form (SPE2) (PDF: 280KB) and send this to NHS Pensions. NHS Pensions will then contact you about this.

The mandatory Scheme Pays deadline for an annual allowance charge in tax years 2019/20 - 2022/23 is extended from 31 July 2024 to 6 July 2025. It is extended to 6 July 2027 for members who retired before 1 October 2023.

We will accept a Scheme Pays Election after these deadlines either via the HMRC tool if you are signed in or a Scheme Pays Election form SPE2 if you are using an accountant or IFA, and your election will be processed as voluntary Scheme Pays.

If you are affected and you need professional support to use the HMRC tool, you can apply to the NHS Pensions Cost Claim Back Scheme to have your costs reimbursed up to the eligible limit.

Our NHS Cost Claim Back Scheme webpage explains what evidence you will need to supply with your application. For example, it’s a good idea to save a screenshot or image of any pages in the HMRC tool which tell you action is required, such as your calculation results page.

Most members who use the first section of the tool, and are told that their tax position is not affected, are unlikely to need professional support. This means applications for costs for support with the first section of the tool may not be accepted, but all claims will be individually considered.

NHS Pensions cannot answer any questions about your tax position or give any updates after you have submitted your information using the tool. HMRC has set up a dedicated support team to help with queries about updating your pension tax for the Public Service Pensions Remedy.

You can reach them at publicservicepensionsremedy@hmrc.gov.uk or by phoning 0300 123 1079 and choosing option 1.

If you do not have your pension input amount (PIA) for 2023/24, you should complete your Self Assessment tax return before the 31 January 2025 deadline using provisional figures. You also need to confirm how you want to pay the tax charge – you can pay this directly to HMRC or by asking the NHS Pension Scheme to pay it using Scheme Pays.

When you receive your 2023/24 tax year PSS, you have until 31 January 2026 (12 months from 31 January 2025) to update your figures on your Self Assessment tax return if you need to.

We do understand it will be very difficult to estimate your tax liability, particularly as you will not have any PIAs from before 2023/24 available to calculate your carry-forward. You should calculate the estimated charge to the best of your ability and keep records of the calculation. There is further guidance about how to estimate your provisional tax charge at: SAM121190 - Returns: individuals returns: provisional or estimated figures: individuals - HMRC internal manual - GOV.UK

To avoid an automated late-filing penalty from HMRC, complete your tax return using a provisional figure by the 31 January 2025 deadline. Even if this figure needs to be changed later, you will not receive a late-filing penalty.

If you’ve never submitted a tax return before, you’ll first need to register for Self-Assessment at: Self Assessment tax returns: Registering and sending a return - GOV.UK

After you have submitted your Self-Assessment tax return with your provisional figures, you should complete the Scheme Pays Election form (SPE2) (PDF: 280KB) using the same provisional figures before the 31 July 2025 mandatory Scheme Pays deadline. You should tick to confirm that the annual allowance tax charge is an estimated figure.

When you receive your 2023/24 tax year PSS and have updated your Self-Assessment tax return, you need to complete a revised SPE2 using the updated figures notified to HMRC. You have up to 4 years to change your Scheme Pays election.

Where you have reasonable grounds to think that you have not breached the £60,000 standard annual allowance amount for tax year 2023/24, you do not need to submit a Self Assessment tax return by the 31 January 2025 deadline. If you later find that you do have an annual allowance tax charge to pay when you receive your PSS 2023/24, you should not face a late-filing penalty – but this will be for HMRC to decide. So, it’s a good idea to keep records of any calculations you make.

If you normally complete a Self-Assessment just because of your pension tax liability but you are confident that you do not have an annual allowance tax charge for 2023/24, you should inform HMRC that you no longer need to submit a Self Assessment return to avoid a late-filing penalty. Information on how to do this can be found at: Self Assessment tax returns: If you no longer need to send a tax return - GOV.UK   

If your 2023/24 PSS gives you a different PIA to the amount you estimated, you’ll need to contact HMRC by 31 January 2026 to update your 2023/24 Self Assessment return.

If the PIA figure in your 2023/24 PSS is higher than the provisional figure submitted in your Self Assessment and you have an annual allowance tax charge, or extra tax charge, to pay, you will be charged interest on the balance if you pay the charge directly to HMRC. The interest rate is the Bank of England base rate plus 2.5%. If you pay by Scheme Pays, interest will not be charged if the balance is paid by the Scheme before 14 February 2026. Your Scheme Pays arrangement will be amended to reflect your updated annual allowance charge.

If you did not make a Scheme Pays election using provisional figures and you have an annual allowance tax charge that you’d like the scheme to pay, you should complete the Scheme Pays Election form (SPE2). If we receive this after 31 July 2025, we will pay your tax charge using our Voluntary Scheme Pays facility. You can find more information about Voluntary Scheme Pays in the Annual Allowance Scheme Pays Election Guide (Word: 467KB).

You can find more information on updating a Self Assessment return at: Self Assessment tax returns: If you need to change your return - GOV.UK