RPSM04104740 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments surcharge: Threshold for surchargeable unauthorised employer payments

The surcharge threshold for surchargeable unauthorised employer payments

The surcharge threshold is reached if the unauthorised payments percentage reaches 25%.

The unauthorised payments percentage is the total of the percentages of the pension fund used up by each unauthorised employer payment made on or after a reference date by the scheme to or in respect of the employer.

The percentage of the pension fund used up making an unauthorised employer payment is represented by the formula

UEP = the amount of the unauthorised employer payment

AA = the total of amount of the sums and market value of assets held for the purposes of the pension scheme at the time the unauthorised employer payment is made.

RPSM04104750 gives an example of surchargeable unauthorised employer payments.