RPSM02402030 - Employer pages: Registering a pension scheme with HMRC: applying for registration: What is the role of the scheme administrator?

What is the role of the scheme administrator?

The scheme administrator is responsible for fulfilling certain functions and duties set out in the tax legislation for registered pension schemes.

In order to be acceptable to HMRC they will be required to make a declaration in accordance with the legislation, that as scheme administrator they understand what their responsibilities under Part 4 of Finance Act 2004 are, and that they intend to carry them out. Without these declarations, the scheme cannot be registered.

The scheme administrator will be responsible for certain functions in connection with the scheme.

These include

• registering the pension scheme with HMRC
• operating tax relief at source on contributions to the pension scheme by claiming tax relief back from HMRC (if your scheme is using this system rather than the net pay system),
• completing and delivering a Pension Scheme Return and providing accounts, statements and other documents in connection with the return, if required by HMRC to do so,
• completing certain reports and providing certain information to HMRC within specified time limits (in accordance with The Registered Pension Schemes (Provision of Information) Regulations (not laid yet),
• ensuring certain information is available to other people, for example members, insurers, personal representatives,
• accounting for and making quarterly returns of tax due under Part 4 of Finance Act 2004 to HMRC,
• making an appeal against any decisions of HMRC made under Part 4 of Finance Act 2004.

The scheme administrator may authorise a practitioner to carry out some of these functions on his behalf. Please see page RPSM02307000.

The scheme administrator is also the person liable to certain tax charges set out in the registered pension schemes legislation in Part 4 of Finance Act 2004. For example, a tax charge may arise where there has been an unauthorised payment from the scheme either to a member or to a sponsoring employer of the scheme. The scheme administrator is liable to pay this tax charge. (Link to page about scheme sanction charge - in due course).