To assist members in applying for HMRC protection, HMRC have introduced a new online application process which was launched in July 2016.
The online process can be accessed through the HMRC website at https://www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance
If you haven’t done so already, you will need to create a Government Gateway account, once logged in you will be able to make your application.
There are two protections that you can apply for: Individual Protection 2016 and Fixed Protection 2016. Each option is explained in more detail on the HMRC website. If you are applying for Individual Protection, you will need to know what your pension(s) were worth on 5 April 2016, as well as a breakdown of the amount(s).
It is important that you inform both your Employer and Group Pensions if you have applied for tax protection. We can then ensure that you are not re-enrolled into the Scheme during automatic re-enrolment as this may mean that you lose your tax protection.