RPSM04301070 - Scheme Administrator Pages: Taxation: Tax and penalties payable by the administrator: Is the scheme administrator liable for any penalties?
Is the scheme administrator liable for any penalties?
Under Part 4 of Finance Act 2004, the scheme administrator is responsible for fulfilling certain functions contained in that legislation in connection with a registered pension scheme (seeRPSM02301010).
The scheme administrator's duties include
- registering the pension scheme with HMRC
- operating tax relief on contributions under the relief at source system
- reporting events relating to the scheme and the scheme administrator to HMRC
- making returns of information to HMRC
- providing information to scheme members, and others, regarding the lifetime allowance, benefits and transfers.
Where the scheme administrators fails in respect of a particular duty, a penalty may be imposed on the administrator.
A list of the main penalties that may apply to the scheme administrator, is set out in the table below. More details about each of penalties listed in the table are given in RPSM04301080.
| Section imposing penalty | Cause of penalty being imposed | Scale of penalty |
| Section 257(1) FA 2004 | Failure to comply with a notice issued under S250 (pension scheme return) | Initial penalty £100 |
| Section 257(2) FA 2004 | Continuing failure to comply with a notice issued under S250 (pension scheme return) | Daily penalties up to £60 per day. |
| Section 257(4)FA 2004 | Fraudulent or negligent return or delivery of incorrect documents etc, | Up to £3,000 |
| Section 258 FA 2004 and Section 98 (1)(b)(i) Taxes Management Act 1970 | Failure to supply event report required by regulations under section 251(1)(a) or (4) of FA2004. | Initial penalty up to £300 |
| Section 258 FA 2004 and Section 98 (1)(b)(ii) Taxes Management Act 1970 | Continuing failure to supply event report required by regulations under section 251(1)(a) or (4) of FA2004. | Daily penalties up to £60 per day. |
| Section 258 FA 2004 and Section 98(2) Taxes Management Act 1970 | Fraudulent or negligent return or delivery of incorrect documents etc, | Up to £3,000 |
| Section 258(2) FA 2004 | Failure to preserve documents as required by regulations made under S251(b) FA 2004 | Up to £3,000 |
| Section 261(3) FA2004 | Producing an incorrect document or certificate or providing false information in connection with any matter registered in accordance with the Enhanced Lifetime Allowance regulations. | Up to 25% of the relevant excess |
| Section 262 FA2004 | Failure to produce any document or certificate or to provide any information, when required to do so by the Enhanced Lifetime Allowance regulations. | Up to £3,000. |
| Section 263(2) FA2004 | Failure to notify HMRC within 90 days of a relevant benefit accrual where paragraph 12 of Schedule 36 applies (enhanced protection) | Up to £3,000. |
| Section 264(1) FA2004 | Making a false statement or representation to obtain a tax relief or repayment or to make an unauthorised payment. | Up to £3,000. |
| Section 264(2) FA2004 | Preparation of an incorrect document that may cause a registered pension scheme to make an unauthorised payment. | Up to £3,000. |
| Section 265(3) FA 2004 | Winding up a registered pension scheme wholly or mainly for the purpose of facilitating the payment of winding-up lump sums or winding-up lump sum death benefits (or both) under the pension scheme. | Up to £3,000 in respect of -(a)each member to whom a winding-up lump sum is paid under the pension scheme, and (b)each member in respect of whom a winding-up lump sum death benefit is paid under the pension scheme. |
| Section 266(2) FA 2004 | Transfer to an insured scheme is not made the administrator or insurance company of the receiving scheme. | Up to £3,000 |
| Section 95 Taxes Management Act | Fraudulent overclaims for relief at source | Tax geared penalty |
| Schedule 36 FA 2008 | Failure to comply with a notice issued under Schedule 36 FA 2008 | See RPSM12301730 |
| Schedule 36 FA 2008 | Providing inaccurate information when complying with an information notice issued under Schedule 36 FA 2008 | See RPSM12301730 |
| Schedule 55 FA 2009 | Late filing or failure to file an accounting for tax return | See RPSM12301340 |
| Schedule 56 FA 2009 | Late payment or failure to pay tax due | See RPSM1231330 and RPSM12301340 |
| Schedule 24 FA 2007 | Providing inaccurate information on an accounting for tax return | See RPSM12301350 |
| Glossary (RPSM20000000) |
