Scheme pays: Everything advisers need to know

Since 2011, pension scheme members have been able to settle annual allowance tax charges via the ‘scheme pays' mechanism. This allows the charge to be paid direct to HM Revenue & Customs (HMRC) from the pension scheme as opposed to being paid via self-assessment. Clients can use this process to settle a charge that's arisen from contributions or accrual in that particular pension scheme. They can also use it to have one scheme pay a charge that arose due to contributions and accrual across more than one scheme. For example, a client could use a defined contribution (DC) scheme like a ...