In Pensions Schemes newsletter 112 (31 July 2019) HMRC have asked schemes to remind members who have exceeded the Annual Allowance for 2018/19 and have an Annual Allowance charge that the charge must be declared on their that they have exceeded their Annual Allowance irrespective of who is paying the charge i.e. the individual or the Scheme through Scheme Pays. HMRC have confirmed:
“Members must complete box 10 on page Ai4 of the supplementary SA101 Self Assessment additional information with the total amount that they’ve exceeded their annual allowance (and this includes members who’ve exceeded their money purchase annual allowance).
If your pension scheme is paying some or all of their annual allowance charge, your member should:
- enter the amount you, as scheme administrator, are paying on their behalf at box 11 on page Ai4 of the SA101 - if they do not do this we’ll ask your member to pay that amount
- put the pension scheme tax reference number in box 12 on page Ai4 of the SA101
The deadline for your members to submit their Self Assessment return for 2018 to 2019 (and supplementary pages) is 31 January 2020.
Your members can find more information about the different types of annual allowance and how to carry forward unused annual allowance in tax on your private pension contributions.
Your members can use our Pensions Annual Allowance Calculator to check whether they need to declare and pay an annual allowance tax charge, even if they have not received a pension savings statement.
And there’s full guidance on how to fill in the SA101 in HS345 Pension savings - tax charges (2019)."