RPSM12301310 - Scheme Administrator Pages: Information Requirements and Administration: Information the scheme administrator is required to give to HMRC: The Accounting for Tax Return: The accounting for tax return
About the accounting for tax (AFT) return
What is the AFT return?
Who is responsible for submitting the AFT return?
Can responsibility for filing an AFT return be delegated?
When is the AFT return due?
How to file the AFT return
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What is the AFT return?
The accounting for tax (AFT) return is a return of certain tax charges that the scheme administrator is responsible for paying.
The tax charges that need to be reported on the AFT return are
- The short service refund lump sum charge - see RPSM04101090 for more information,
- The lifetime allowance charge - see RPSM11100070 for more information,
- The special lump sum death benefit charge - see RPSM04101110 for more information
- The serious ill-health lump sum charge (from 6 April 2011) see RPSM04101125 for more information,
- The authorised surplus payments charge - see RPSM04102030 for more information, and
- The de-registration charge - see RPSM04105010 for more information.
Who is responsible for submitting the AFT return?
The scheme administrator is responsible for making the AFT return. They are also responsible for ensuring it is correct and complete.
If a pension scheme is de-registered the person(s) who was the scheme administrator immediately before the scheme’s registration was withdrawn is responsible for filing the AFT and paying the tax due.
[The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 - SI 2006/569]
Where the scheme is a split scheme the sub-scheme administrator is responsible for filing the AFT return and paying the tax due for their sub-scheme. The following schemes are split schemes
The Local Government Pension Scheme
The Local Government Pension Scheme (Scotland)
The Electricity Supply Pension Scheme
The Police Pension Schemes
The Firefighters Pension Schemes
[The Pension Benefits (Insurance Company Liable as Scheme Administrator) Regulations 2006 - SI 2006/136]
An insurance company will be responsible for filing an AFT return if both the following conditions are met.
- The annuity or insurance contract is not owned by a registered pension scheme but was purchased from funds held by such a scheme. Payments under the contract are treated as if made from a registered pension scheme by virtue of s161(3) & (4).. An example of this situation is where an annuity is purchased by the scheme ‘in the name of the member’. The annuity contract is not owned by the scheme but by the member. Payments under the annuity will be treated as if made from the registered pension scheme that purchased the contract.
- One of the following payments is made under the annuity or insurance contract
- A pension protection lump sum death benefit,
- An annuity protection lump sum death benefit, or
- An unsecured pension fund lump sum death benefit.
Can responsibility for filing an AFT return be delegated?
A scheme administrator can appoint an agent, called a practitioner, to complete and submit the AFT return. However the scheme administrator retains responsibility for ensuring the AFT return is made on time and that it is correct.
If a practitioner files an AFT return the scheme administrator should have seen and approved the content of the return before it is submitted to HMRC. The practitioner will have to make a declaration to this effect when they file the AFT return.
When is the AFT return due?
The AFT return is a quarterly return. The quarters are
- 1 January to 31 March
- 1 April to 30 June
- 1 July to 30 September
- 1 October to 31 December.
You only need to complete an AFT return if one or more of the tax charges listed above has arisen in a quarter. Do not complete an AFT return if none of these tax charges has arisen in a quarter.
The AFT return should be submitted to HMRC before the end of 45 days following the end of the relevant quarter. So for tax charges arising in the period
- 1 January to 31 March the AFT return should be filed no later than 15 May
- 1 April to 30 June the AFT return should be filed no later than 14 August
- 1 July to 30 September the AFT return should be filed no later than 14 November
- 1 October to 31 December the AFT return should be filed no later than 14 February.
Payment of the scheme administrator tax charges listed is also due at the same time; 45 days following the end of the relevant quarter.
To find out what can happen if you do not submit the AFT return on time see RPSM12301340.
For more information on how to pay the tax due go to RPSM12301330.
How to file the AFT return
[Reg 4 & 6 The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006 - SI 2006/570]
The AFT return must be submitted electronically using Pension Schemes Online. The scheme administrator will not have met their obligation to file an AFT return until submission has been accepted by Pension Schemes Online.
You cannot submit a valid paper AFT return. If you do send a paper AFT return to HMRC the legislation treats it as not having been delivered. You will not have met your responsibility to file an AFT return and you will still need to file the AFT return online.
Amendments to the AFT return must also be filed electronically via Pensions Schemes Online.
More information on how to submit an AFT return can be found at paragraph 9.8 of the Guide to using the Online Service for scheme administrators and practitioners.
RPSM12301320 tells you what information is needed to submit an AFT return.
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