HMRC have set a deadline for members to inform their pension provider that they want their pension scheme to pay the Annual Allowance (AA) charge on their behalf.
For the tax year 2012-13, the Scheme Pays Election form must be received by SPPA no later than 31st July 2014.
In order to meet HMRCs Scheme Pays deadlines, members should estimate their liability for an AA charge based on available information. Members who have been provided with a provisional statement should use the information contained in their statement for tax purposes.
Following receipt of an initial election notice within HMRCs deadline, a member can complete a second election if there is a change to the amount of their AA charge. This could occur if they received a provisional statement and their final statement shows the AA charge has either increased or decreased.
HMRCs deadline for changing an existing election notice is up to four years. For an AA charge relating to the 2012-13 tax year, an election to change the amount of AA charge must be received no later than 31st July 2017.