RPSM04104520 - Technical Pages: Taxation: Unauthorised payments: Unauthorised payments charge: Reports

Reporting and paying the unauthorised payments charge

The scheme administrator should report the details of any payment of an unauthorised payment on the Event Report. The Event Report should be submitted to HMRC by 31 January following the end of the tax year in which the unauthorised payment is made. If the scheme has wound up, the Event Report should be submitted to HMRC by the earlier of

• the end of 3 months beginning with the date that the scheme completed winding up, or
• 31 January following the end of the tax year in which the unauthorised payment is made.

The person liable to the unauthorised payments charge should declare the payment on their Self Assessment return. Where someone does not receive a Self Assessment return they should report their chargeability to tax in respect of the payment to HMRC.

It is possible that certain payments might be made by a registered pension scheme that are seemingly unauthorised payments but are not unauthorised payments as the payments are made in genuine error and, once spotted, are rectified as soon as reasonably possible. For more details see RPSM12101020.

Also, a registered pension scheme might, inadvertently, make overpayments of pension instalments that are, nevertheless, unauthorised payments. However, such overpayments that do not exceed £250 in total and which are made in certain circumstances do not have to be reported (and nor will HM Revenue and Customs seek to collect the tax that, in strictness, would be due in respect of the unauthorised payment). For more details see RPSM12101040.