RPSM02307120 - Scheme Administrator Pages: Registering a pension scheme with HMRC: Authorising practitioners and other functions available in Pension Schemes Online: Registering for relief at source claims
Tax relief is given on member contributions to a registered pension scheme through
- the net-pay arrangement, or
- the relief at source procedure.
Under the net-pay arrangement, contributions are paid to the pension scheme as gross amounts, so the scheme administrator does not need to take any action to re-claim tax relief.
Under the relief at source procedure, contributions are paid to the pension scheme as amounts net of basic rate income tax. The scheme administrator needs to claim tax relief at basic rate from HMRC in relation to these contributions.
As well as registering the pension scheme online , it is also possible for the scheme administrator to register to make relief at source claims in connection with contributions to their registered pension scheme.
The scheme administrator or practitioner can also register to make relief at source claims at a later date than registering the scheme for tax relief and exemptions.
For more information see RPSM05301000.