Tax charges
Contents
- What tax charges is the Scheme Administrator responsible for, reporting and paying?
- How does the Scheme Administrator report the tax charges they’re responsible for?
- I normally submit 1SF/2SF/3SF, should I still be using these?
What tax charges is the Scheme Administrator responsible for, reporting and paying?
The tax charges are as follows;
1. Short service refund lump sum charge. See RPSM04101100
for further information.
2. Special lump sum death benefits charge. See RPSM04101110
for further information.
3. Authorised surplus payments charges. See RPSM04102020
for further information.
4. Lifetime allowance charge. See RPSM11100070
for further information.
5. De-registration charge. See RPSM04105010
for further information.
6. PAYE for any pensions in payment. See RPSM04101020
for further information.
How does the Scheme Administrator report the tax charges they’re responsible for?
- Charges 1-5 above should be reported on the Accounting for Tax (AFT) return, see ‘The Accounting for Tax return’ for further information.
- For charge 6 above, the normal PAYE rules apply. For further information on PAYE see CWG2 “The Employer Further Guide to PAYE and NICs”
I normally submit 1SF/2SF/3SF, should I still be using these?
No, these forms should not be used to report tax charges incurred on or after 6th April 06.
The only exception is where the tax charge is incurred as a result of an authorised ‘pipeline lump sum’ payment, in which case it is reported to HMRC in the same way as if it had been made before 6 April 06 using forms 1SF/2SF. These forms can be found in the archived forms.
For further information on what are ‘Pipeline Lump Sum’ payments, see the Registered Pension Schemes Manual at RPSM03111010 to RPSM03111040.
