Knowledgebase Support HMRC Useful links
Knowledgebase home
Tax Return Production
Accounts Production
Practice Management
VAT Filer
Anti-Money Laundering
Support home
Hot Topics
SimpleStep Guides
Release Notes
Known Issues

HMRC Status
Useful Links
MTD for Agents MTD for Businesses What is MTD
Agent Services Account
MTD for Income Tax
Digital Record Keeping
Quarterly Updates
Step-by-step Guide
HMRC's MTD Timeline
TaxCalc's MTD Journey

Scottish Taxpayer Pension Charge -HMRC Special Case 33

Article ID: 3038
Last updated: 11 Dec, 2019

HMRC have identified an issue whereby the Annual Allowance (pension) Charge calculated, is not always correct for Scottish rate taxpayers.

The calculation is not correct for Scottish rate taxpayers where the tax charged should be at the Scottish intermediate rate (21%-2018/19)) rather than the Scottish higher rate (41%-2018/19).

If the taxpayer is liable to pay the charge, HMRC advises a workaround to add an amount within Annual Allowance tax paid to reduce the pension charge to the expected amount.

For example, if the excess contributions are 11,902 and the pension charge has been incorrectly calculated @ 41% = 4,879, and the correct amount should be @ 21% = 2,499, the difference to enter in amount paid is 2,380.

Enter the amount as follows:

HMRC Forms mode > Page Ai4 > box 11

SimpleStep mode > Tax reliefs and allowances > Annual Pension Allowance > Annual Allowance tax paid or payable by your pension scheme.

If the pension provider is paying the charge, enter the amount paid (as above) to match the original pension charge (4,897 in the above example).

For both workarounds, please enter details of how you arrived at the calculation stating the workaround is due to Special Case 33, in HMRC Forms mode > Page TR7 > box 19 (Any other information) or SimpleStep > Any Other income > Additional information.

Article ID: 3038
Last updated: 11 Dec, 2019
Revision: 3
Views: 50
This article was:  

Also listed in
folder Tax Return Production -> SA100 Individual Return