2 min read 30 Sep 22
October, not only halfway through the fiscal year, but also the time clients may receive pension savings statements (PSS).
A PSS is sent for the previous tax year for one of these two reasons;
But just because this is sent doesn’t mean that there will automatically be a tax charge.
Knowing the clients carry forward situation is essential (although you can’t use carry forward for MPAA excesses). A PSS details the last three years input history for the scheme (but the client may be a member of other schemes). Carrying out the correct calculations is essential, carry forward doesn’t have to be claimed but evidence should be retained should HMRC ever require proof.
Further to this your client may be tapered for their AA, therefore they may not be notified if their contributions are under the standard AA.
Ultimately, it’s the client. How it’s paid can be based on several factors. Does the client meet the mandatory scheme pays conditions, is voluntary scheme pays available , if not, the client will have to pay from their own resources? Whatever the option, this must be declared in a tax return to HMRC.