PTM163000 - Information and administration: The Pension Scheme Return
Glossary |
Requirement to complete a Pension Scheme Return
Responsibility for submitting the Pension Scheme Return
Pension Scheme Return filing deadline
What the Pension Scheme Return may include
How to submit a Pension Scheme Return
What happens if the Pension Scheme Return isn’t filed on time or is inaccurate
Requirement to complete a Pension Scheme Return
Section 250 Finance Act 2004
Regulation 4 The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006 - SI 2006/570
The Registered Pension Schemes (Audited Accounts) (Specified Persons) Regulations 2005 - SI 2005/3456
The Pension Scheme Return (PSR) is a return that provides HMRC with information about a registered pension scheme. A PSR only needs to be completed if HMRC issue a notice to the scheme administrator requiring completion of the return. If HMRC has issued a notice to file a PSR, the return must be completed and submitted to HMRC.
The notice to file a PSR will specify the period to be covered by the return. The period to be covered by the return may be:
- the whole of the tax year
- any part of the tax year
- the period/s covered by any audited accounts of the pension scheme, if such accounts have been prepared for any period/s ending in the tax year.
The notice to file a PSR may be given electronically if the scheme administrator consented to the use of electronic communications for the delivery of information by HMRC and that consent has not been withdrawn.
Responsibility for submitting the Pension Scheme Return
Section 250 Finance Act 2004
The scheme administrator is responsible for filing the PSR and ensuring it is accurate and complete.
A practitioner can file the PSR on behalf of the scheme administrator but the scheme administrator remains responsible for ensuring that it is submitted on time and the contents are correct. Where a practitioner files the PSR the scheme administrator should have seen and approved its content before it is submitted to HMRC. The practitioner must make a declaration that the scheme administrator has approved the contents of the PSR before the practitioner can submit it to HMRC.
The scheme administrator is liable for penalties if the PSR is incomplete or inaccurate, including where they ask a practitioner to submit the return on their behalf.
The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 - SI 2006/569
Where the registered pension scheme is a split scheme the sub-scheme administrator is responsible for filing the PSR due for their sub-scheme. The Registered Pension Schemes (Splitting of Schemes) Regulations 2006 specifies which schemes are split schemes, how they are split into sub-schemes and who the sub-scheme administrator is.
Pension Scheme Return filing deadline
Section 250(7) to (9) Finance Act 2004
Where the notice to file the PSR is issued on or before 31 October following the end of the relevant tax year, the PSR must be submitted by 31 January following the end of that tax year. However, if the scheme completed winding-up before 31 October following the end of the relevant tax year, the PSR must instead be submitted within three months of the later of:
- the date winding-up was completed
- the date the notice to file was issued.
Where the notice to file is issued after 31 October the PSR must be submitted within three months of the date the notice to file was issued.
What the Pension Scheme Return may include
The form of the PSR is prescribed by HMRC. A PSR may ask questions about any information relating to:
- contributions made under the pension scheme
- transfers of sums or assets held for the purposes of, or representing accrued rights under, another pension scheme so as to become held for the purposes of, or to represent rights under, the pension scheme
- income and gains derived from investments or deposits held for the purposes of the pension scheme
- other receipts of the pension scheme
- the sums and other assets held for the purposes of the pension scheme
- the liabilities of the pension scheme
- the provision of benefits by the pension scheme
- transfers of sums or assets held for the purposes of, or representing accrued rights under, the pension scheme so as to become held for the purposes of, or to represent rights under, another pension scheme
- other expenditure of the pension scheme
- the membership of the pension scheme, or
- any other matter relating to the administration of the pension scheme.
The requested information may be restricted to a particular arrangement or arrangements under the pension scheme.
The notice to file may also require the scheme administrator to deliver with the PSR any accounts, statements or other documents relating to information contained in the return.
How to submit a Pension Scheme Return
Regulation 4 The Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006 - SI 2006/570
The PSR must be sent in electronically using Pension Schemes Online. The scheme administrator will not have met their obligation to file a PSR until the submission has been accepted by Pension Schemes Online. The legislation treats any paper PSR as not having been delivered.
The Guide to using the Online Service for scheme administrators and practitioners (gov.uk website) sets out the practical steps of filing a PSR.
Once a PSR has been submitted, any changes that need to made to it will be an amendment. After a PSR has been submitted to HMRC, it can be amended using Pension Schemes Online, but there is a need to wait for 24 hours after the PSR has been submitted before amendments can be made to that PSR.
What happens if the Pension Scheme Return isn’t filed on time or is inaccurate
Section 257 Finance Act 2004
If the PSR isn’t filed on time the scheme administrator will be liable to a £100 penalty. Further penalties may be due where the PSR still hasn’t been sent in after this penalty has been raised. The further penalty can be up to £60 for every day that the failure to file a PSR continues. HMRC cannot impose a penalty after the PSR has been submitted and accepted by Pension Schemes Online.
If the information in the PSR is not correct the scheme administrator can be liable to a penalty for fraudulently or negligently making an incorrect return. This penalty can be up to £3,000.
The scheme administrator can also be liable to penalty of up to £3,000 for fraudulently or negligently delivering any inaccurate accounts, statements or other documents with the PSR.
Scheme administrators can appeal against a penalty using form APSS413.