Where member contributions are received net of RAS, the sum
deducted is to be treated as income tax paid by the
scheme administrator. As a result the scheme
administrator is entitled to recover from HMRC this amount and add
it to the member’s pension fund.
Before a contribution can be paid as a net contribution the
scheme administrator must receive certain information and
declarations from the scheme member.
RPSM05202020 to
RPSM05202045 explain what
information and declarations are required.
In practice most scheme administrators of schemes using RAS
provide members with an application form and other supporting
documentation to join their pension scheme. Scheme administrators
will need to ensure that their member application process collects
the relevant information and declarations. No tax relief can be
claimed by scheme administrators if the required information and
declarations have not been provided by the member.
The income tax recovery has to be made by a claim to HMRC
for all the members entitled to such treatment within the scheme.
This is an annual claim and has to be made for each tax year.
However the scheme administrator has the option to make interim
claims, usually for each tax month.
| Glossary ( RPSM20000000) |
