If:

• You have an Annual Allowance tax charge in respect of the 2016/17 input period, and
• You have informed HMRC of this liability on your Self assessment  tax return, and
• You require Teachers’ Pension Scheme to pay this tax for you, in exchange for a ‘just and reasonable’ debit being applied to your eventual benefits;

Then:

If you intend to make a Scheme Pays election on a ‘Voluntary’ basis, HMRC will require payment to be made by 31^st January 2018. We would like to remind members that the Scheme Pays notice is not signed and received by us in time to process any such requests before 31st January 2018, there may be a charge to interest.  Teachers’ Pensions will require sufficient time to arrange payment of the tax charge to HMRC, on a member’s behalf.

Any request for payment to be made after this date may result in late payment charges and interest by HMRC, which will be the sole responsibility of the member.

Legislation does not permit Teachers Pensions’ to pay the interest upon the member’s behalf by means of ‘Voluntary’ scheme pays and must be met by the member directly.

For more information on Scheme Pays and what ‘Mandatory’ and ‘Voluntary’ Scheme Pays elections are please visit the Teachers Pensions Tax and National Insurance page found here:

Tax and National Insurance

Alternatively visit HMRC’s pension’s tax manual which can be found here:

Tax Manual (This link opens in a new window)

Please note that the deadline for submitting a ‘Mandatory’ Scheme Pays election in respect of the 2016/17 tax year remains 31^st July 2018, or the date of your retirement if earlier. 

 Teachers’ Pensions are not regulated to provide any financial advice in relation to this matter. If you are uncertain as to what action you need to take, we would recommend that you seek professional advice. An approved registered adviser in your locality can be found at:  www.unbiased.co.uk (This link opens in a new window).