Marvin OnumonuThe Government has extended the mandatory scheme pays deadline to 6th July 2027 for public sector pension members.
The extension applies to all members who have already submitted a scheme pays election to HMRC for the tax years 2019 to 2020 through to 2022 to 2023, where the original deadline was 6th July 2025.
Ministers agreed that this would help those still waiting for revised pension input statements.
Future regulations will include this change, and guidance will be updated once the regulations are in effect.
Graham Crossley, NHS pensions specialist at Quilter, said: “This extension to the mandatory scheme pays deadline is a very welcome and pragmatic decision from government.
“With many public service schemes still working through the complex process of issuing revised pension input statements due to the McCloud remedy, this move ensures that affected members, particularly those who may have missed the original 6 July 2025 deadline, won’t be unfairly penalised.
“Changing the deadline avoids creating unnecessary two-tier outcomes.”
Crossley added: “Crucially, it provides a fair opportunity for members to use scheme pays to cover annual allowance tax charges without having to find large sums from their own pocket.
“We would still urge members to seek advice or support from their accountant, financial adviser or nhs pension specialist firm, to ensure deadlines are not missed and elections are submitted correctly.
“While this delay gives breathing space, it’s important not to wait until the last minute.”
