SE15200 - Non-approved retirement benefits schemes: employer's responsibilities

Section 605(3) ICTA 1988

Non-approved “retirement benefits schemes” have their own reporting requirements. Employers are required to deliver particulars of a non-approved scheme within three months of it “coming into operation”. This means the earlier of:

• when the employer makes a contribution to provide benefits for an employee

or

• when any benefits are paid out

When an employer reports the existence of a non-approved scheme the District should open a control file in the form of a sub-folder in the employer's 46 file and use it to house all relevant correspondence. The employer should be asked for full details of the scheme including a copy of the rules and any Trust Deed.

Although not a statutory requirement, most employers include contributions on forms P11D. At the end of each year of assessment, the employer should be asked to supply a full list of all contributions made to the scheme in that year, specifying the amount paid in respect of each employee in the scheme. This list will assist in checking that all charges under Section 595(1) ICTA 1988 have been assessed (see SE15040).

If an unreported scheme comes to light and the employer refuses to comply with a request for information refer the papers to Employment Income Technical. The Board's power under Section 605(3)(b) to require employers to furnish particulars has not been delegated to Districts.

If the scheme has been set up under trust see TSM5200 onwards.

For the PAYE position, see SE15210