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Document What do I need to do if I have an annual allowance charge?

Ultimately you are responsible for deciding how to pay your annual allowance charge and reporting this to HMRC. You can either:

  • pay the annual allowance charge directly to HMRC yourself; or

  • you can ask us to share the responsibility and pay your annual allowance charge for you using a facility known as ‘scheme pays’.

Reporting an annual allowance charge to HMRC

If you have an annual allowance charge you will need to tell HMRC about this and confirm how you will pay this amount. You can do this when you complete your self-assessment tax return.

 

You will need to use the supplementary Additional Information form (SA101) to report that you have exceeded your available annual allowance. HMRC has published a help sheet, HS345 - ‘Pensions - tax charges on any excess over the lifetime allowance, annual allowance and on unauthorised payments’ to help you to complete the ‘Pension Savings Tax Charges’ section on page Ai4 of the additional information pages.

 

You can find the help sheet by inserting ‘HS345’ into the search box at www.gov.uk.

 

If you do not usually complete a self-assessment tax return or it has been some time since you last did so you will need to register for one by completing form SA1. It can take up to 20 working days to complete HMRC’s registration process at the end of which you will be given a Unique Taxpayer Reference (UTR). You can register on line by inserting ‘SA1’ into the search box at www.gov.uk.

 

If you pay the annual allowance charge yourself

 

You must pay your annual allowance charge to HMRC by 31 January, following the end of the relevant tax year. There may be interest applied if the annual allowance charge is paid after this date.

 

If you ask NHS Pensions to pay the annual allowance charge

 

You must complete a Scheme Pays Election Notice (SPE2) by 31 July. For a charge in 2017/18 this will be by 31 July 2019.

 

When you report the charge on form SA101 you will need to know the scheme’s pension scheme tax reference (PSTR) number. These are:

 

1995/2008 NHS Pension Scheme - 00328820RJ

2015 NHS Pension Scheme - 00820574RJ

NHS MPAVC Scheme - 00328923RA

 

If you are a member of both the 1995/2008 NHS Pension Scheme and the 2015 NHS Pension Scheme the SA101 only allows one annual allowance charge and one PSTR number. If you want both NHS schemes to pay your charge then you need to add together the charges from each scheme and insert one of the above PSTRs.

 

Next, in the additional information part of this form you will need to include a note of the annual allowance charge for each scheme and provide the second PSTR.

 

Self-assessment forms already submitted to HMRC

 

If, after reading this page, you think you may have submitted an incorrect tax return or SA101 you have one year to make any changes. For more information on changing a tax return visit: www.gov.uk/self-assessment-tax-returns/corrections

 

You can find more details about scheme pays in the Pension Savings Statement Guide and factsheets on our website.
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