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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: miscellaneous charges: The Pension Schemes Service (TPSS)

You can use all forms of enforcement for Pension Schemes Service (TPSS) charges except for Accounting Tax (AFT) charges (see below).

TPSS related interest charges can be pursued and enforced the same as you would any other interest charge.

Pre - enforcement Action

SAFE will issue appropriate payment reminders to the liable person and if unpaid, items will appear on the SAFE Local Action worklist.

Standard pre enforcement processes apply; you should

  • issue the relevant warning letter and
  • carry out normal follow-up action.

Enforcement Action

Check that the case is suitable for recovery action and choose the most appropriate action.

In some instances the name on the charge may be simply recorded as ‘The Scheme Administrator of the [name] Pension Scheme’.

Up until the point you need to take court action to recover the debt, correspondence can be addressed in this way.

To enter cases into court you will need to establish the identity of the body acting as the administrator, be that an individual, a corporate body or non-corporate body, in which event it will be necessary (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to supply this information.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Accounting For Tax (AFT) charges

AFT returns are due and tax is payable under Section 254 and Section 255B Part 4 Finance Act 2004.

The return is a form of self assessment by the Pension Scheme’s administrator whereby the return is made and at the same time payment should be made of the amount shown on the return.

AFT charges are not enforceable. If not paid, the tax due is formalised and made enforceable by making a formal assessment. The process for turning charges into formal assessments is handled by the SAFE unit. DTOs will not be involved.

Accounting For Tax (AFT) charges: Late payment interest

AFT late payment interest is payable and enforceable in its own right. SAFE will issue a range of payment reminders. Unpaid interest charges will be referred to the DTO for enforcement via the SAFE Local Action worklist.

Accounting for Tax Assessments

Unpaid AFT charges are formalised by making an Assessments under Regulation 4 of The Registered Pension Schemes (Accounting and Assessment) Regulation 2005 [SI 2005/3454].

SAFE will issue a range of payment reminders. Unpaid assessments will be referred to the appropriate DTO for recovery action. Items will appear on the SAFE Local Action worklist.

Penalties

Penalties are

  • charged under various regulations within Part 4 of the Finance Act 2004
  • determined under Sections 100 and 100C Taxes Management Act 1970
  • payable under Sections 100A and 100C Taxes Management Act 1970

There are two types of penalties

  • automatic (SAFE charge type = TPSS Failure to Submit PSR automatic penalty) and
  • manual (SAFE Charge type = TPSS Penalty)

SAFE will issue a range of payment reminders. Unpaid penalties will be referred to the appropriate DTO for recovery action. Items will appear on the SAFE Local Action worklist.

Late payment interest

Late payment interest is due under Regulation 5 of The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 [SI2005/3454] and chargeable under Section 86 Taxes Management Act 1970.