If you meet the following criteria:

• You have an Annual Allowance tax charge in respect of the 2017/18 input period, and
• You have informed HMRC of this liability on your Self-assessment tax return, and
• You require The 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 require payment to be made by 31 January 2019. Teachers’ Pensions will require sufficient time to arrange payment of the tax charge to HMRC, on a member’s behalf.

Any payment 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 our Tax and National Insurance section.

Alternatively visit HMRC’s pension’s 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 2017/18 tax year is 31 July 2019, or the date of your retirement, if earlier.

Teachers’ Pensions is 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’d recommend that you seek professional advice at www.unbiased.co.uk (This link opens in a new window)