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Self Assessment: Tax Return for Trustees of Registered Pension Schemes (SA970)

Introduction to the SA970 Form

In the UK, trustees of registered pension schemes have a unique obligation to submit a Self Assessment tax return using the SA970 form. This form is specifically designed for trustees managing the tax-related affairs of pension schemes. These schemes are registered under HM Revenue & Customs (HMRC), and the trustees are responsible for reporting any income, capital gains, and other financial transactions associated with the pension scheme. The SA970 form ensures that the trustees comply with all tax requirements, even in cases where no tax is owed.


Self Assessment: Tax Return for Trustees of Registered Pension Schemes (SA970)


Trustees need to understand the nuances of this form, its deadlines, and the penalties for non-compliance. Managing a pension scheme's tax return is a crucial responsibility, as it directly impacts the pension holders and the overall administration of the fund.


The Role of Trustees in Pension Schemes

Trustees of pension schemes are appointed to manage the assets held within the scheme. They are tasked with overseeing investments, distributing pensions to beneficiaries, and ensuring that all legal and tax obligations are met. The role of the trustee is essential because they act as fiduciaries, meaning they must act in the best interests of the pension holders. Failure to meet these responsibilities, particularly in relation to tax matters, can result in significant penalties.


Pension schemes in the UK are regulated under Part 4 of the Finance Act 2004, which sets out specific rules for their operation and tax reporting. Trustees are required to ensure that the pension scheme's tax liabilities are accurately reported and paid. This is where the SA970 form comes into play.


Who Must File an SA970?

Trustees of registered pension schemes are required to file an SA970 form if any of the following conditions are met:


  • Income Tax or Capital Gains Tax is payable: If the pension scheme has earned any income or realized any capital gains during the tax year, these must be reported to HMRC using the SA970 form.

  • Repayment claims: If the pension scheme has paid tax and is eligible for a tax repayment, the trustees must file an SA970 form to claim the repayment.

  • Requests from HMRC: In some cases, HMRC may send a letter to the trustees of a pension scheme requesting that they file an SA970 form. Even if no tax is owed, the trustees are still required to complete and submit the form as part of their reporting obligations.


Importantly, trustees should be proactive. Even if HMRC does not contact them, trustees must file an SA970 form if the pension scheme meets any of the above conditions. This is particularly important as HMRC cannot always guarantee that they will issue reminders for every pension scheme that is required to file a return.


Deadlines and Filing Requirements

The deadline for filing the SA970 form is 31 January following the end of the tax year. For example, for the tax year running from 6 April 2023 to 5 April 2024, the filing deadline would be 31 January 2025. However, trustees who want HMRC to calculate the tax for them must submit the form by an earlier deadline of 31 October. If the form is submitted after this date, the trustees are responsible for calculating the tax due themselves, which adds to the administrative burden.


It is important to note that the SA970 form cannot currently be filed online. Trustees must complete and submit a paper version of the form. This requirement makes it crucial for trustees to stay on top of their filing obligations, as any delay can result in penalties. Late submission can attract automatic penalties, even if no tax is owed, ranging from £100 for delays of up to three months to more severe penalties for extended delays.


Repayments and Payments on Account

In addition to reporting income and capital gains, trustees may also need to claim repayments of tax or make payments on account for future tax liabilities. A repayment claim might arise if the pension scheme has paid too much tax during the year, such as withholding taxes on dividends or interest. Trustees can claim this repayment by completing the relevant sections of the SA970 form and providing the necessary supporting documentation.


For pension schemes with ongoing tax liabilities, HMRC may require trustees to make payments on account. These are advance payments of tax for the current tax year, based on the amount of tax owed in the previous year. The first payment on account is usually due by 31 January, with a second payment due by 31 July. Trustees must ensure that these payments are made on time to avoid interest charges and late payment penalties.


Penalties for Non-Compliance

Trustees who fail to file the SA970 form by the deadline or who underpay their tax liabilities can face significant penalties. As mentioned earlier, automatic penalties apply for late submission of the form, even if no tax is due. These penalties start at £100 for delays of up to three months and increase for longer delays or repeated offences.


In cases where trustees deliberately fail to file the SA970 form or provide inaccurate information, HMRC may impose additional penalties. These can range up to £5,000 per offence, depending on the severity of the non-compliance. It is therefore essential that trustees take their tax reporting responsibilities seriously and seek professional advice if they are unsure about how to complete the SA970 form.


Trustees are given the opportunity to appeal against penalties if they believe that they have a reasonable excuse for missing the deadline. However, HMRC applies strict criteria when assessing such appeals, and trustees should not rely on this as a way to avoid penalties.


The SA970 form plays a critical role in ensuring that trustees of registered pension schemes fulfill their tax obligations. Trustees must be diligent in tracking the pension scheme's income and capital gains, filing the SA970 form on time, and making any necessary tax payments or repayment claims. Failure to do so can result in significant penalties, both financial and reputational. In the next part, we will delve deeper into the specific steps involved in completing the SA970 form and provide practical tips for trustees to manage their tax obligations effectively.



Completing the SA970 Form: A Step-by-Step Guide for Trustees of Registered Pension Schemes

In this section, we will explore the specific steps trustees must take to successfully complete the SA970 form. This form is used to report the tax position of a pension scheme and includes various sections requiring detailed financial information. As of August 2024, the process remains paper-based, with trustees needing to post the completed form to HMRC. While the process may seem complex, understanding each part of the form will help trustees comply with HMRC's requirements and avoid penalties.


Gathering Necessary Information Before Starting

Before filling out the SA970 form, trustees must gather a range of financial information relevant to the pension scheme. This includes:


  1. Scheme Income: Trustees must account for all income received by the pension scheme during the tax year. This could include investment income (such as dividends, interest, and rental income) and other forms of income related to the assets held within the scheme.

  2. Capital Gains: If the scheme has sold assets or made any other disposals resulting in a capital gain, this must be reported on the SA970 form. Trustees must calculate the gains and ensure that they account for any allowable deductions or exemptions that may reduce the taxable gain.

  3. Previous Tax Payments: If the pension scheme has made tax payments during the year, trustees need to gather evidence of these payments. This includes any taxes paid at source or advance payments (payments on account) made to HMRC. Trustees will need to reference these when calculating the total tax owed or whether a repayment is due.

  4. Expenses: Trustees can deduct allowable expenses from the pension scheme’s income or capital gains when calculating tax liability. These expenses must be directly related to the administration or investment of the pension scheme, such as investment management fees or trustee fees.


By ensuring all relevant information is readily available, trustees can efficiently complete the SA970 form and reduce the risk of errors or delays in submission.


Detailed Breakdown of the SA970 Form Sections

The SA970 form contains several sections, each requiring specific details about the pension scheme’s financial activities during the tax year. Here’s a breakdown of the key sections and what trustees need to know for accurate completion.


Section 1: Pension Scheme Details

This section asks for basic information about the pension scheme, such as the scheme's name, address, and HMRC Pension Scheme Tax Reference (PSTR). The PSTR is an essential identifier that links the tax return to the specific pension scheme, so trustees must ensure this information is correct.


Section 2: Income

Here, trustees report all the income received by the pension scheme during the tax year. The types of income that must be declared include:


  • Dividends: Income from shares or investments in companies.

  • Interest: Income from bonds, savings accounts, or other interest-bearing assets.

  • Rental income: If the scheme owns property and receives rental payments, these must be reported as income.


Trustees should break down income into these categories and provide details of any tax that has already been deducted at source. For example, UK-based dividends are often received with tax deducted, and trustees need to ensure that these amounts are recorded accurately.


Section 3: Capital Gains

If the pension scheme has disposed of any assets during the tax year (e.g., sold shares, property, or other investments), trustees must calculate and report any capital gains. Trustees should include:


  • The original purchase price of the asset.

  • The sale price.

  • Any associated costs (e.g., legal fees, valuation fees) that can be deducted from the gain.


It is essential to apply any relevant reliefs, such as Entrepreneurs' Relief or Annual Exemption, where applicable. Trustees must also keep records of how they arrived at the final capital gains figure, as HMRC may request further documentation.


Section 4: Repayments

If the pension scheme is due a repayment of tax (for example, if too much tax was paid on dividend income), trustees must complete this section to claim the repayment. Trustees should provide details of the amount overpaid and ensure they include the correct bank account details for HMRC to issue the repayment.


Section 5: Calculating Tax Due or Overpaid

Once all income and capital gains have been reported, trustees must calculate the total tax due or overpaid by the pension scheme. The calculation process involves:


  • Adding up all taxable income and gains.

  • Subtracting any allowable deductions or reliefs.

  • Applying the relevant tax rates (such as the basic rate for dividends or capital gains).


Trustees must cross-check these calculations carefully, as errors could result in incorrect tax payments or delays in processing the return. If the pension scheme has already made payments on account, trustees should deduct these amounts from the total tax liability to determine whether further payments are required or if a repayment is due.


Section 6: Declaration and Signature

The final section of the SA970 form requires trustees to sign a declaration stating that the information provided is accurate and complete. This is a critical part of the form, as trustees are legally responsible for ensuring the accuracy of the tax return. Failure to provide accurate information could lead to penalties or even prosecution in cases of deliberate non-compliance.


Practical Tips for Managing the SA970 Process

Filing an accurate and timely SA970 form is essential for avoiding penalties and ensuring that the pension scheme’s tax affairs are in order. Below are some practical tips for trustees to manage the process effectively:


  1. Set Up a Filing System: Trustees should maintain a dedicated filing system for all documents related to the pension scheme’s tax affairs. This includes records of income, expenses, and capital gains, as well as previous tax returns and correspondence with HMRC. By keeping everything organized, trustees can quickly access the information they need when completing the SA970 form.

  2. Work with a Professional Accountant: Given the complexity of pension scheme tax reporting, trustees may benefit from working with a professional accountant or tax advisor. An experienced advisor can help trustees navigate the intricacies of the SA970 form, ensure that all calculations are accurate, and identify any potential tax-saving opportunities.

  3. Use HMRC’s Guidance: HMRC provides detailed guidance on how to complete the SA970 form, which is available on their website. Trustees should refer to this guidance when completing the form to ensure that they are meeting all legal requirements.

  4. Keep Track of Deadlines: Missing the deadline for filing the SA970 form can result in automatic penalties, so trustees must keep track of important dates. Using a calendar or reminder system can help trustees stay on top of their filing obligations and avoid unnecessary penalties.

  5. Submit the Form Early: Trustees who submit the SA970 form before the 31 October deadline can take advantage of HMRC’s tax calculation service. By submitting early, trustees can avoid the need to calculate the tax due themselves and ensure that HMRC has plenty of time to process the return.


Completing the SA970 form requires attention to detail and a thorough understanding of the pension scheme’s financial activities. Trustees must ensure that they accurately report all income, capital gains, and tax payments, and that they meet HMRC’s filing deadlines to avoid penalties. In the next part, we will explore the potential consequences of non-compliance and offer additional strategies for trustees to manage their pension schemes' tax responsibilities efficiently.



How to Fill the SA970 Form - A Step-by-Step Process

The SA970 form is used by trustees of registered pension schemes in the UK to report income, capital gains, and any tax liabilities for a given tax year. The 2024 version covers the tax year from 6 April 2023 to 5 April 2024. Below is a step-by-step guide on how to fill the SA970 form, complete with explanations for each section and suggested sample answers where appropriate.


Page 1: Basic Details


1. Pension Scheme’s Self-Assessment Tax Reference, Name, and Correspondence Address

The first section of the form requires the Self Assessment tax reference, the name of the pension scheme, and the correspondence address. Make sure these are filled in accurately.


  • Sample answer:

    • Self Assessment tax reference: 1234567890

    • Pension scheme name: XYZ Pension Scheme

    • Address: 10 Sample Street, London, AB1 2CD


Page 2: Income for the Year Ended 5 April 2024


2. UK Income

This section requires you to report any income from UK investments from which tax has already been deducted. If no tax has been deducted, do not include the income here.


Question 1: Did you receive income from which UK Income Tax has been deducted? (Put an X in the appropriate box)

  • Sample answer: Yes

1.1 to 1.5: You will be asked to provide the total income after tax, tax deducted, gross income, tax reclaimed, and the amount of tax yet to be reclaimed.

  • Sample answer:

    • 1.1: £5,000

    • 1.2: £1,000

    • 1.3: £6,000 (before tax)

    • 1.4: £500 (already reclaimed)

    • 1.5: £500 (yet to be reclaimed)


3. Income from Overseas Investments

Here, you’ll report income from overseas investments. Be sure to include income only if UK tax has been deducted or is due to be reclaimed.


Question 2: Did you receive income from overseas investments?

  • Sample answer: Yes


2.1 to 2.4: Provide details of the income after tax, UK tax deducted, and any tax reclaimed.

  • Sample answer:

    • 2.1: £3,000

    • 2.2: £300

    • 2.3: £100 (already reclaimed)

    • 2.4: £200 (yet to be reclaimed)


4. Trading Income

If the pension scheme received income from trading activities, you must report it here.


Question 3: Did you receive any trading income?

  • Sample answer: No

If you answer Yes, you will need to provide details of turnover, expenses, and net profit or losses.


Page 3: Additional Income and Payments


5. Income Under a Deed of Covenant

If the scheme received income under a Deed of Covenant, report it here. Otherwise, move to the next question.


Question 4: Did you receive any income under a Deed of Covenant?

  • Sample answer: No


6. Other Taxable Income

This section is for any other taxable income not already covered, such as chargeable gains from assets.


Question 6: Did you receive any other taxable income or make any taxable chargeable gain?

  • Sample answer: Yes


6.1 to 6.7: Describe the income and chargeable gains, and enter the amounts after tax.

  • Sample answer:

    • 6.1: Sale of property

    • 6.2: £25,000 (after tax)

    • 6.3: £5,000 (tax deducted)

    • 6.4: £30,000 (gross amount)

    • 6.5: £5,000 (taxable gain on residential property)


Page 4: Calculating Tax or Repayment


7. Calculating the Tax

This section allows you to decide whether you want HMRC to calculate the tax due, or if you will do it yourself.


Question 7: Do you want to calculate the tax (or repayment) due?

  • Sample answer: No

If you answer Yes, you will need to provide details of tax due for the 2023-24 tax year, and any payments on account for the next tax year.


8. Claiming a Repayment

If you want to claim a tax repayment, fill out this section. You can choose whether to have the repayment sent to the pension scheme’s bank account or a nominee’s account.


Question 8: Do you want to claim a repayment?

  • Sample answer: Yes


8.1 to 8.12: Provide details of the bank account where the repayment should be sent, or your nominee’s details if applicable.

  • Sample answer:

    • 8.3: ABC Bank

    • 8.4: Pension Scheme Account

    • 8.5: Account number: 12345678

    • 8.6: Sort code: 12-34-56


Page 5: Contact Details and Changes


9. Contact Details

Provide a daytime phone number and the name of the person responsible for the return. If you have an adviser, include their contact details as well.


Question 9: Who should we contact if there are queries about the return?

  • Sample answer:

    • 9.1: 020 1234 5678 (Your contact number)

    • 9.2: John Doe (Trustee)

    • 9.3: 020 9876 5432 (Adviser’s contact number)


10 & 11. Changes to Trustee or Scheme Name

Report any changes to the trustee or pension scheme name.


Question 10: Is the name of the pension scheme on the front of the Notice wrong?

  • Sample answer: No


12. Changes to Trustees

If there have been any changes to the names or addresses of trustees, provide the relevant information here.


Question 12: Have there been any changes to the names and addresses of the trustees?

  • Sample answer: Yes


Page 6-7: Final Declarations


13. Provisional Figures and Tax Avoidance Schemes

If you have provisional figures because final numbers are not available, declare it here. You must also disclose any involvement in tax avoidance schemes.


Question 13.1: Does this tax return contain provisional figures?

  • Sample answer: No


Question 13.2: Is the trust involved in any tax avoidance schemes?

  • Sample answer: No


Page 7: Declaration

The final step is signing and dating the form. Ensure that the information provided is accurate to the best of your knowledge. Any false information may result in penalties.


14. Declaration


Question 14.3: Confirm that the information provided is correct and complete.

  • Sample answer:

    • Signature: John Doe

    • Date: 01/10/2024


Pls. NOTE: These are ONLY Sample answers. You should write your own answers.



Consequences of Non-Compliance and Penalties for Trustees of Registered Pension Schemes

Managing tax obligations as a trustee of a registered pension scheme is crucial to avoiding severe financial penalties. In this part, we will explore what happens when trustees fail to meet their filing and payment obligations with HMRC. We will also offer strategies to ensure ongoing compliance with the tax reporting process, which helps avoid legal complications and minimizes the risk of incurring penalties.


Penalties for Late Filing of the SA970

The deadline for filing the SA970 form is 31 January after the end of the tax year, and penalties are automatically applied for late submissions, regardless of whether any tax is owed. Here’s an overview of the penalties trustees may face if they miss this deadline:


  • £100 fixed penalty: This is the standard penalty for submitting the SA970 form up to three months after the 31 January deadline.

  • Further penalties: If the form is more than three months late, additional penalties of £10 per day may be charged, up to a maximum of £900.

  • Six-month delay: For returns that are more than six months late, HMRC may apply a further penalty of 5% of the tax due or a minimum of £300, whichever is greater.

  • Twelve-month delay: If the SA970 form is more than twelve months late, the same penalty as the six-month delay can be applied. Additionally, if HMRC believes that the delay was intentional or due to deliberate evasion, harsher penalties of up to 100% of the tax due may be imposed.


Even if no tax is owed, HMRC will still issue penalties for missing deadlines. Trustees are encouraged to submit their returns on time to avoid these unnecessary fines.


Penalties for Incorrect Information

Filing incorrect information on the SA970 form can lead to penalties depending on the severity of the error. HMRC distinguishes between the following categories of error:


  • Careless errors: If trustees make an honest mistake while completing the SA970 form, the penalties may be relatively lenient. However, HMRC can still impose a penalty ranging from 0% to 30% of the extra tax due, depending on the situation.

  • Deliberate errors: If HMRC determines that the trustees provided incorrect information deliberately, the penalties increase significantly. Trustees can face penalties between 20% and 70% of the additional tax due for deliberate but unprompted errors. If HMRC believes that the trustees deliberately tried to evade taxes and failed to disclose this until prompted, the penalties can increase to between 35% and 100% of the tax owed.


Given these potential consequences, it is critical for trustees to provide accurate and complete information when filing the SA970 form.


Consequences of Late Payments

Beyond filing penalties, trustees also face fines if they fail to pay any tax owed by the 31 January deadline. The penalties for late payment are as follows:


  • 5% penalty: This is charged on any unpaid tax 30 days after the payment deadline (31 January).

  • Additional penalties: A further 5% penalty is charged on tax that remains unpaid at six months and again at twelve months.


In addition to penalties, HMRC also charges interest on any unpaid tax, which increases the financial burden on trustees. This interest is compounded daily, making it crucial for trustees to pay on time to avoid accumulating debt.


Strategies to Ensure Compliance

To avoid penalties and ensure smooth management of the pension scheme’s tax affairs, trustees should adopt a proactive approach. Here are several strategies to help trustees meet their tax obligations efficiently.


1. Regular Financial Audits

Conducting regular audits of the pension scheme’s financial activities is an essential practice for trustees. These audits help identify income, capital gains, and expenses, ensuring that all transactions are accurately recorded and that any tax liability is calculated correctly. By keeping detailed financial records throughout the year, trustees will find it easier to complete the SA970 form when the time comes.


2. Work with a Pension Scheme Accountant

Given the complexities of pension scheme tax reporting, many trustees choose to work with an accountant or tax advisor who specializes in this area. A professional advisor can provide valuable guidance on filing requirements, tax planning, and the overall management of the pension scheme’s finances. Trustees should consider working with a qualified accountant to ensure compliance with all HMRC regulations and avoid common mistakes.


3. Use HMRC’s Resources

HMRC offers various resources for trustees of registered pension schemes, including guidance documents on how to complete the SA970 form and calculation guides for capital gains and other taxes.


Trustees should make use of these resources to better understand their tax obligations and ensure that they are completing the SA970 form accurately.


4. File Early

Filing the SA970 form early is an effective way to avoid last-minute stress and penalties. Trustees who submit the form by 31 October can take advantage of HMRC’s tax calculation service, where HMRC will calculate the tax due on the pension scheme’s behalf. Filing early also gives trustees more time to correct any errors or gather additional documentation if needed.


5. Keep Track of Deadlines

Trustees should set up a reminder system to ensure that they don’t miss important deadlines. This could be as simple as setting up calendar reminders or using software that tracks key dates for tax returns and payments. Staying on top of deadlines helps trustees avoid unnecessary penalties and interest charges.


6. Claim Tax Reliefs and Allowances

Trustees should be aware of any tax reliefs and allowances that may apply to the pension scheme. For example, pension schemes may qualify for exemptions on certain types of income or capital gains, which can reduce the overall tax liability. Understanding these reliefs allows trustees to manage the scheme’s tax affairs more efficiently and reduce the risk of overpayment.


The Importance of Accurate Record-Keeping

Maintaining accurate financial records is fundamental to successfully managing a pension scheme’s tax obligations. Trustees should retain records of all income, expenses, and capital gains, as well as evidence of any tax payments made throughout the year. HMRC requires trustees to keep these records for at least six years, and they may request to review them during an audit or investigation.


Common types of records that trustees should keep include:

  • Bank statements and investment reports showing income received by the pension scheme.

  • Receipts for expenses incurred by the scheme, such as legal or accounting fees.

  • Purchase and sale documents for assets, such as property or shares, that have been disposed of during the tax year.

  • Correspondence with HMRC, including any tax repayment claims or payments on account.


By keeping comprehensive records, trustees will be well-prepared to complete the SA970 form accurately and demonstrate compliance with HMRC’s requirements.


The role of a trustee in managing the tax obligations of a registered pension scheme is critical. Non-compliance can lead to severe penalties, not just financial but also reputational, which can have long-term consequences for both the trustees and the pension scheme. It is essential for trustees to maintain accurate records, stay informed of filing deadlines, and understand the details required in the SA970 form. Working with professionals and using HMRC’s resources can help trustees navigate this complex process effectively.


Ensuring compliance and accurate reporting will keep the pension scheme in good standing with HMRC and prevent unnecessary fines or legal challenges. Trustees who stay proactive and informed about their tax obligations can minimize risks and focus on safeguarding the future of the pension scheme's beneficiaries.



Future Considerations and Changes in Tax Regulations for Pension Trustees

As of August 2024, the UK government continues to update its tax regulations, particularly around pension schemes, to ensure that trustees fulfill their obligations effectively and efficiently. In this section, we will examine potential future developments that trustees of registered pension schemes should keep an eye on, including changes in digitalization, updates to tax reliefs, and increased scrutiny of non-compliance.


Transition to Digital Reporting

One of the most significant potential changes on the horizon is the shift toward fully digital tax reporting under HMRC's Making Tax Digital (MTD) initiative. Currently, trustees of registered pension schemes must submit the SA970 form via paper, as there is no digital filing option available for this particular tax return However, as MTD expands, it is likely that digital submission will become mandatory for pension scheme trustees in the future.


The MTD initiative has already been implemented for VAT-registered businesses and is set to expand to Income Tax Self Assessment (ITSA) in the coming years. When this occurs, trustees may be required to maintain digital records and file their SA970 forms through HMRC’s digital portal. This shift will increase transparency and efficiency, but it also means trustees must prepare for the transition by ensuring that their record-keeping systems are compatible with digital reporting.


Trustees should begin familiarizing themselves with HMRC's digital services, such as the Manage and Register Pension Schemes Service, to ensure they are ready for future changes. This platform currently allows trustees to manage certain aspects of pension scheme registration online, and it is expected that more functions, including tax return submissions, will be integrated into this service over time.


Increased Scrutiny and Penalties

HMRC has been ramping up its enforcement efforts in recent years, with a focus on trustees who fail to meet their tax obligations. This trend is expected to continue into 2025 and beyond, particularly as HMRC uses more sophisticated data analytics to identify discrepancies in tax filings. Trustees should be aware that:


  • Deliberate non-compliance: HMRC is likely to impose higher penalties on trustees found to be deliberately avoiding tax or providing inaccurate information. This includes not only financial penalties but also reputational damage, which can have long-term consequences for the pension scheme.

  • Random audits: HMRC is increasingly using risk-based audits, meaning trustees may face scrutiny even if they believe they are fully compliant. By maintaining accurate records and submitting tax returns on time, trustees can reduce the likelihood of triggering an audit.


Updates to Tax Reliefs and Allowances

Another area to watch is potential changes to tax reliefs and allowances for pension schemes. The government regularly reviews these reliefs as part of its broader fiscal policy, and trustees must stay informed of any updates that could impact the tax liabilities of their schemes.


In recent years, there have been calls for the government to adjust pension tax relief as part of efforts to simplify the tax system. This could involve reducing the scope of certain reliefs or introducing new thresholds for claiming relief on pension contributions. If such changes are implemented, trustees will need to reassess their tax planning strategies and ensure that they continue to claim all available allowances.


Potential Changes to Capital Gains Tax (CGT)

The UK government has also been considering reforms to Capital Gains Tax (CGT) as part of its review of the tax system. Any changes to CGT could have significant implications for pension schemes that hold investments in assets such as property, stocks, or other financial instruments.


Currently, trustees are required to report and pay CGT on the disposal of scheme assets if those disposals result in a capital gain. However, proposals have been floated to align CGT rates more closely with Income Tax rates, which would likely increase the tax burden on pension schemes that make capital gains.


Trustees should monitor any developments in CGT rules and assess how potential changes could impact their tax obligations. By staying ahead of these changes, trustees can take proactive steps to minimize the tax liabilities of the pension scheme.


Best Practices for Trustees Moving Forward

As tax regulations for pension schemes continue to evolve, trustees should adopt best practices to ensure ongoing compliance and efficient tax management. Below are some key recommendations for trustees moving forward:


1. Keep Informed of Regulatory Updates

Given the frequency of changes in tax law, trustees should stay informed about updates to the SA970 form, filing deadlines, and other pension scheme-related tax obligations. Trustees can subscribe to HMRC’s email updates or work with a tax advisor who specializes in pension schemes to stay abreast of any changes.


2. Embrace Digital Solutions

Even though the SA970 form is still paper-based, trustees should begin transitioning to digital record-keeping systems that are compatible with future MTD requirements. Investing in a reliable accounting platform that tracks pension scheme income, gains, and expenses will make it easier to comply with digital tax filing requirements when they are introduced.


3. Regularly Review Tax Planning Strategies

Tax planning is an ongoing process for pension scheme trustees. As tax reliefs and allowances are subject to change, trustees should regularly review their tax planning strategies to ensure they are still effective. This might include reassessing the types of investments held within the pension scheme, as well as identifying new tax-saving opportunities as they arise.


4. Maintain Comprehensive Records

Trustees are required to keep accurate financial records for at least six years. Maintaining detailed records of all transactions, including income, expenses, and capital gains, will not only simplify the process of completing the SA970 form but also provide protection in the event of an audit. Digital record-keeping solutions can make this process more efficient and reduce the risk of errors.


5. Consult with Professional Advisors

Given the complexity of pension scheme tax reporting, trustees should consider consulting with professional accountants or tax advisors. A qualified advisor can help trustees navigate the evolving regulatory landscape, ensure compliance with HMRC requirements, and identify opportunities to reduce the pension scheme’s tax liabilities.


The SA970 form is a critical document for trustees of registered pension schemes, ensuring that the scheme meets its tax obligations and remains compliant with UK tax law. Trustees must be diligent in their tax reporting, from gathering necessary financial information to filing the SA970 form on time. Failure to comply can result in substantial penalties, both financial and reputational.


As tax regulations evolve, trustees must stay informed of changes to reliefs, allowances, and reporting requirements. The anticipated transition to digital reporting will further streamline the process, but it will require trustees to adopt new technologies and practices.

By following best practices, such as maintaining comprehensive records, seeking professional advice, and staying ahead of regulatory changes, trustees can efficiently manage their pension schemes and avoid potential pitfalls. Managing a pension scheme’s tax affairs may be challenging, but with the right approach, trustees can ensure compliance, protect the scheme’s assets, and safeguard the interests of its beneficiaries for years to come.


What Happens if a Trustee Fails to File the SA970 Form on Time in the UK?

Being a trustee of a registered pension scheme in the UK comes with a lot of responsibilities, especially when it comes to tax reporting. One of the most important obligations is submitting the SA970 form on time. But what happens if you, as a trustee, miss the deadline for filing? Well, let’s just say it can lead to a pretty frustrating—and costly—situation. In this article, we’ll break down the consequences, what you can do if you’ve already missed the deadline, and some practical tips to avoid this problem in the future. Plus, I’ll throw in some real-world examples so you can see how this plays out in practice.


The Initial Consequences

First off, when you miss the deadline for filing the SA970 form (which, by the way, is 31 January following the end of the tax year), HMRC doesn't waste any time. You’ll automatically receive a penalty notice in the post.


This first penalty is a flat £100 fine. Sounds minor, right? But don’t get too comfortable. That’s just the start. Even if the pension scheme has no tax due, or you’ve already paid it, this penalty applies. Think of it as HMRC's way of saying, "We take deadlines seriously."

Take for example a trustee named Sarah. Sarah was managing a small pension scheme with minimal income and figured there wasn’t much urgency to submit the SA970. She missed the 31 January deadline and ended up with a £100 penalty even though her scheme had no tax to pay. Lesson learned: penalties apply whether you owe tax or not.


Penalties Keep Racking Up

Now, if you still haven’t submitted your SA970 form three months after the deadline, things start to get a little more serious. HMRC will hit you with an additional penalty: £10 per day for up to 90 days. That’s potentially another £900 added to your initial fine. It doesn’t matter if you’re three days late or 90 days late—it adds up quickly.


Let’s say you’ve been busy managing your other trustee responsibilities or simply forgot (it happens!). By the time you remember, it’s been four months since the deadline. In that time, £100 has turned into a potential £1,000 penalty. Not the kind of bill you want to receive!


Six and Twelve Months Late: Bigger Trouble Ahead

What if you’re six months or even twelve months late? Things get even uglier. At six months, HMRC imposes another penalty of 5% of the tax due, or £300—whichever is higher. This means that even if the tax owed is minimal, the fine will still be at least £300. If the pension scheme owes a significant amount in tax, that 5% can really hurt.


At twelve months late, the same penalty applies again: 5% of the tax owed or £300, whichever is greater. For large pension schemes with significant income or capital gains, these percentages start to snowball.


Interest on Unpaid Tax

Penalties aren’t the only concern. HMRC also charges interest on any unpaid tax from the original due date (31 January) until you pay the tax in full. The interest rate HMRC charges varies, but as of 2024, it stands at around 6.75% per year. While this might seem minor for a small sum of tax, over time, it can add up—especially for trustees managing pension schemes with larger tax liabilities.


For example, if you owe £10,000 in tax and you’re twelve months late, that’s £675 in interest alone. Pair that with the mounting penalties, and you’ve got yourself a pretty expensive oversight.


Real-Life Example: The Case of John and the Unfiled SA970

Let’s consider John, who’s the trustee of a medium-sized pension scheme. In the 2022/2023 tax year, the scheme had investment income and capital gains, which required him to file the SA970. He missed the 31 January 2024 deadline, thinking there would be no real consequences because the pension scheme had already made some tax payments on account.


Fast forward to May 2024, John received a notice for £1,000 in penalties—£100 for missing the initial deadline, plus £900 in daily penalties for the next 90 days. In addition to this, HMRC imposed a 5% penalty in July when John still hadn’t filed, adding another £500 based on the scheme’s tax liability. By the time he finally submitted the SA970 form in October 2024, John was hit with more than £2,000 in penalties and interest. It’s a mistake he’s unlikely to repeat.


What Happens if You Continue Ignoring the SA970?

Let’s say you’ve made it past the twelve-month mark and still haven’t filed. The fines don’t stop there. If HMRC determines that you’re deliberately withholding the information, they can impose penalties ranging from 20% to 100% of the tax due.


In particularly severe cases, such as when trustees deliberately attempt to evade their responsibilities, HMRC might even pursue legal action. While this is rare, it’s not impossible—especially if the amounts involved are large or if HMRC believes the trustee’s actions were fraudulent.


Appeals: What If You Have a “Reasonable Excuse”?

So, what if you genuinely had a reason for missing the deadline? Can you appeal the penalties? Yes, but HMRC doesn’t let everyone off the hook so easily. You’ll need to prove that you had a reasonable excuse for missing the deadline. Reasonable excuses typically include situations like:


  • A serious illness that prevented you from completing the return.

  • A postal delay (and you have evidence to back it up).

  • Issues with HMRC’s own systems, such as technical problems that prevented you from filing on time.


However, forgetting the deadline or being too busy is not considered a reasonable excuse. If HMRC accepts your excuse, they might cancel or reduce the penalties, but this is handled on a case-by-case basis. And remember, the onus is on you to prove that your excuse was valid.


What Should You Do If You’ve Missed the Deadline?

If you’ve already missed the deadline, don’t panic—but don’t ignore it either. The best thing you can do is submit the SA970 form as soon as possible. The longer you wait, the higher the penalties will climb. You can also contact HMRC directly to explain your situation. While they won’t waive penalties just because you’re late, they might offer some flexibility on payment deadlines or give you advice on how to avoid further penalties.


For example, trustees like Sarah, who missed the initial deadline but filed soon after receiving the first penalty, managed to avoid accumulating the larger £1,000 daily penalties by acting quickly. The key is not to delay.


Tips to Avoid Missing Deadlines in the Future

  1. Set Reminders: Use your phone or calendar to set multiple reminders for key dates. HMRC’s filing deadline doesn’t change, so set alerts well in advance.

  2. Work with an Accountant: Having a tax advisor or accountant involved in your pension scheme’s administration is a great way to avoid missing deadlines. They’ll keep track of all the key dates and can even help with the form preparation itself.

  3. Submit Early: Don’t wait until January to file your SA970. Submitting the form early, perhaps by October, gives you plenty of time to address any issues that might come up before the deadline.


Filing the SA970 form late can result in a chain of escalating penalties, interest charges, and even legal trouble if you’re not careful. Whether the scheme owes tax or not, HMRC enforces strict deadlines, and ignoring them isn’t worth the financial hit. With some careful planning and proactive steps, trustees can avoid the hefty fines and ensure their pension scheme stays compliant year after year.



What Is the Tax Treatment of Pension Income Within a Registered Pension Scheme?

If you’re a trustee, pension scheme member, or simply someone interested in how UK pensions work, you’ve probably wondered how pension income is taxed. It’s one of those topics that seems straightforward until you start digging into the details. The truth is, pension income in the UK is treated quite uniquely from a tax perspective—mostly because the government wants to encourage saving for retirement but also needs to make sure people pay their fair share of tax when the time comes.


Let’s dive into the nuances of how pension income is taxed within a registered pension scheme in the UK, using practical examples to bring it all to life.


Understanding the Basics: Registered Pension Schemes

First, it’s important to get the lay of the land. In the UK, registered pension schemes are those that meet specific HMRC requirements. These include employer-run occupational schemes, personal pension plans, and other arrangements that enjoy tax benefits because they comply with the rules set out by the Finance Act 2004.


One of the primary tax advantages of registered pension schemes is that contributions made by both employers and employees are generally tax-free up to a certain limit. This makes it incredibly attractive for individuals looking to save for retirement. However, while contributions and growth (through investment income) within the pension fund are mostly tax-exempt, pension income itself is subject to tax when you start drawing it.


Tax-Free Pension Contributions and Growth

Let’s start with the good news: while the money sits in a pension scheme, it enjoys a range of tax benefits. Specifically:


  • Pension contributions: Contributions made by individuals or employers benefit from tax relief. For example, if you’re a basic rate taxpayer and contribute £100 into your pension, HMRC adds £25 to your pension, bringing the total to £125. Higher-rate taxpayers can claim even more.

  • Investment growth: Any income earned from investments held within the pension scheme—whether that’s dividends, interest, or capital gains—typically grows tax-free while it remains within the scheme. This is one of the biggest incentives to save into a registered pension scheme because it allows your pension pot to grow faster than it would in a regular taxable investment account.


That said, it’s when you start drawing the pension that tax begins to apply. This is where things get a little more complicated.


How Pension Income Is Taxed When Withdrawn

When you retire and begin withdrawing income from your pension (this could be through an annuity, a regular withdrawal plan, or a lump sum), that income is treated just like any other form of taxable income. It gets added to your total income for the tax year and is taxed according to your income tax band. Let’s break this down:


  • Tax-free lump sum: The first bit of good news is that you can take 25% of your pension as a tax-free lump sum. This is one of the most popular features of UK pensions, as it allows retirees to get a significant chunk of money tax-free. For example, if you’ve built up a pension pot of £400,000, you could take £100,000 as a tax-free lump sum.

  • Tax on regular pension income: The remaining 75% of your pension is taxed just like your salary or any other income. So, for 2024, if your annual pension income, plus any other income you receive (such as from employment or investments), exceeds your personal allowance (£12,570), you’ll start paying income tax at the applicable rates:

    • Basic rate (20%): Up to £50,270.

    • Higher rate (40%): From £50,271 to £125,140.

    • Additional rate (45%): Above £125,140.


Example: How Pension Income Is Taxed

Imagine Sarah has just retired and starts drawing income from her pension. She decides to take the 25% tax-free lump sum from her £300,000 pension pot, which gives her £75,000 tax-free. The remaining £225,000 is left invested, and she opts to withdraw £20,000 a year as pension income.


Let’s say Sarah has no other sources of income besides her pension. In the 2024 tax year, she would get a personal allowance of £12,570, meaning she only pays tax on the remaining £7,430. The tax on this £7,430 would be 20% (since Sarah is within the basic rate tax band), which totals £1,486 in tax.


Sarah’s pension income would therefore be £18,514 after tax.

If Sarah had other sources of income (such as rental income or a part-time job), her total taxable income would increase, potentially pushing her into a higher tax band, and she’d pay a higher rate of tax on part of her pension income.


What About Drawdown?

Drawdown is another way to access your pension income, allowing you to take a flexible income from your pension pot without purchasing an annuity. The taxation works similarly: 25% can be taken tax-free, but any further withdrawals will be subject to income tax based on your tax band.


Let’s take an example of John, who has £400,000 in his pension pot. He takes his 25% tax-free lump sum (£100,000) and decides to go into drawdown with the remaining £300,000. In the first year, he draws £50,000 from his pot. After his personal allowance of £12,570, John will be taxed on the remaining £37,430. As John earns £37,430 through drawdown, this puts him in the basic rate band for tax.


John will pay 20% on this £37,430, resulting in a tax bill of £7,486. His net income from the pension drawdown would be £42,514.


The Annuity Option

Annuities are a slightly different beast. When you buy an annuity, you convert your pension pot into a guaranteed income for life (or a fixed term). Once you start receiving payments from the annuity, they are treated as taxable income, just like the other pension withdrawals we’ve discussed.


Let’s say Rachel buys an annuity with her £200,000 pension pot and receives £10,000 per year in annuity payments. As she also receives £10,000 in rental income from a property, her total income for the tax year would be £20,000. She would pay tax on anything above the personal allowance of £12,570, so in this case, she would be taxed on £7,430 at the basic rate of 20%, giving her a tax bill of £1,486 on her total income.


Non-Allowable Expenses: Continuing with the No-Go List

We’ve already discussed that expenses incurred for personal use and fines or penalties don’t qualify as allowable expenses. Let’s add a few more items to the list:


  • Expenses for non-pension-related business: If a trustee is managing several different ventures or trusts, and incurs an expense for another trust or business, that cost cannot be claimed as an allowable expense for the pension scheme. For example, if you’re running both a charity and a pension fund, and you hire a lawyer to handle issues for the charity, the lawyer’s fees are not deductible for the pension fund, even if they both share the same trustee.

  • Expenses that don’t meet the “wholly and exclusively” test: This is a fundamental principle in the UK tax system. An expense must be incurred wholly and exclusively for the purpose of administering the pension scheme. If an expense serves both a personal purpose and the pension scheme, it’s likely to fail this test. For instance, if you decide to purchase a laptop and use it 50% for trustee work and 50% for personal reasons, you can't claim the full cost of the laptop as an allowable expense—HMRC would likely deem it excessive.


Now that we have a solid understanding of both allowable and non-allowable expenses, let’s look at some practical examples to show how this works in real life.


Real-Life Example 2: Jane’s Travel Conundrum

Jane is a trustee of a pension scheme that has assets in various UK cities. She often needs to travel for meetings with investment managers and to check on properties that belong to the scheme. She wonders if her travel expenses are allowable.


In most cases, travel expenses for meetings that are necessary for the management of the pension scheme would qualify as allowable. If Jane’s travel is exclusively for trustee duties, then her train tickets, mileage, and potentially even accommodation (if required) would qualify as allowable expenses. For example, if Jane travels from London to Manchester for a trustee board meeting that discusses the pension scheme’s investments, her train fare can be claimed as an allowable expense.


However, if Jane also decides to extend her trip for a mini-vacation in Manchester after her trustee duties are done, the costs for her holiday stay, meals, and leisure activities wouldn’t be allowable. It’s important for Jane to keep accurate records to separate the trustee-related expenses from her personal ones.


Training and Development: Can Trustees Claim This?

Trustees are often encouraged to keep up-to-date with regulatory changes, investment strategies, and best practices in pension scheme management. Attending conferences, seminars, and workshops can be valuable. But can you claim these expenses?

The answer is yes, as long as the training is directly related to the trustee’s duties for the pension scheme. For example, if a trustee attends a pension management seminar that focuses on the latest legal and tax changes affecting pension schemes, the cost of the seminar would likely be considered an allowable expense.


However, if the seminar covers topics outside of pension management, such as personal finance or general business advice, the expense may not qualify. HMRC is strict about this distinction. Training must enhance your ability to manage the pension scheme directly, rather than for personal development or unrelated business purposes.


Keeping Proper Records: Protecting Yourself from HMRC Scrutiny

HMRC is known for conducting audits to ensure that trustees are claiming the correct allowable expenses. To protect yourself and the pension scheme, it’s crucial to maintain thorough documentation of every expense you claim.


For each allowable expense, you should have:

  1. Receipts or invoices: Keep the original documents that show how much was paid, to whom, and for what service or product.

  2. Clear descriptions: If an expense might be questionable (such as travel or professional fees that could be used for non-scheme purposes), it’s important to document why the cost was incurred for the pension scheme. For instance, a note on a trustee meeting agenda showing that the travel was essential could be useful.

  3. Separate accounts: Where possible, it’s a good idea to maintain separate accounts or credit cards for pension scheme expenses. This makes it easier to track spending and ensures that personal and pension-related expenses aren’t mixed.


By keeping solid records, you minimize the risk of HMRC disputing any expenses and ensure that the pension scheme remains compliant with tax laws.


Final Considerations for Allowable Expenses

One key takeaway is that allowable expenses must directly benefit the pension scheme and not trustees or other parties personally. HMRC’s rules around allowable expenses are clear-cut but can also be quite strict, especially when it comes to determining what qualifies as "wholly and exclusively" for the scheme.


If you’re unsure about whether a particular cost is allowable, it’s always best to consult with a tax professional or an accountant who specializes in pension schemes. This way, you’ll avoid falling foul of HMRC’s rules and possibly facing penalties for incorrectly claiming non-allowable expenses.


Managing a pension scheme comes with its own set of challenges, especially when it comes to understanding which expenses are allowable and which are not. As we’ve seen, many of the costs you incur—whether it’s professional fees, investment management costs, or even trustee fees—can be deducted, as long as they meet HMRC’s criteria of being “wholly and exclusively” for the scheme. On the other hand, expenses for personal benefit or those unrelated to the scheme’s operations are a no-go.


The key to managing allowable expenses properly is keeping detailed records and always ensuring that every cost can be justified as necessary for running the pension scheme. By doing so, trustees can navigate the complexities of pension scheme management while staying on the right side of HMRC’s tax rules.



What Qualifies as an Allowable Expense for Pension Scheme Trustees?

As a trustee of a registered pension scheme in the UK, you’ve probably already realized that running a pension scheme isn’t cheap. Whether you’re dealing with administration, investment management, or professional fees, there are plenty of costs that come your way. The good news is that many of these expenses can be claimed as allowable expenses, which means they can be deducted from the pension scheme’s income before calculating any tax liabilities. However, not every cost you encounter is eligible. In this article, we’ll break down what qualifies as an allowable expense, providing clarity on what you can and can’t deduct, along with some real-life examples to make it all easier to understand.


What Are Allowable Expenses?

Allowable expenses are costs that are incurred wholly and exclusively for the purpose of running the pension scheme. This is a key phrase, as HMRC only permits deductions for expenses that directly relate to the operation and management of the pension fund. The general rule is that if an expense is necessary for administering the pension scheme or managing its investments, it’s likely to qualify as an allowable expense.


Trustee Fees: Compensating for Your Time

Let’s start with one of the most straightforward allowable expenses: trustee fees. While being a trustee is often a voluntary role, in many cases, trustees are paid for their time and expertise. If trustees receive remuneration for the work they do, this is considered an allowable expense. The payment must be reasonable and proportionate to the responsibilities and work undertaken by the trustee.


For example, if you’re a trustee who spends significant time managing the investments or attending board meetings, the fee you receive for this can be deducted from the pension scheme’s income as an allowable expense. However, if the trustee’s fee is disproportionately high for the amount of work being done, HMRC may question whether it’s genuinely an allowable cost.


Investment Management Fees: Keeping the Pension Pot Growing

Investment management is a critical aspect of running a pension scheme. Professional investment managers are often hired to ensure that the pension fund’s assets are being invested wisely. Naturally, the fees paid to these professionals qualify as an allowable expense, as they are incurred directly for the purpose of managing the scheme’s funds.

For instance, if the pension scheme invests in stocks, bonds, or real estate, the fees paid to brokers, financial advisors, or investment managers to oversee these assets can be deducted. These costs are fundamental to the scheme’s financial health, making them fully deductible. Just remember, the key is that these fees are related to the management of investments held by the scheme. If you, as a trustee, decide to pay for speculative advice on other non-pension-related investments, this would not be allowed.


Professional Fees: Accountants and Lawyers

Running a pension scheme often involves navigating complex legal and tax issues. It’s common for trustees to hire professional advisors, such as accountants, auditors, or solicitors, to ensure that everything is in order. Thankfully, the fees you pay to these professionals are considered allowable expenses, provided they relate to the pension scheme’s activities.


For example, if you hire an accountant to prepare the scheme’s financial statements or an auditor to audit the pension fund’s accounts, their fees can be deducted from the scheme’s income. Similarly, if you need legal advice on the scheme’s trust deed or have to deal with a dispute related to the scheme, the solicitor’s fees will also be allowable. However, legal costs incurred for non-scheme-related issues (e.g., personal disputes between trustees) won’t make the cut.


Administrative Costs: Keeping the Scheme Running Smoothly

A well-run pension scheme doesn’t just manage its investments; it also needs to handle various administrative tasks to stay compliant with regulations. The costs associated with administering the scheme, such as office supplies, postage, telephone bills, or software subscriptions used for pension administration, can also be allowable expenses.


For example, if your scheme uses an online platform to manage member contributions and disbursements, the fees associated with this software can be claimed. Likewise, if you send out annual benefit statements to members, the cost of printing and postage can be deducted. These are necessary day-to-day expenses required to ensure the scheme runs smoothly, making them eligible for tax relief.


Regulatory Fees: Keeping in Line with the Law

Every pension scheme must adhere to a raft of regulations, and compliance doesn’t come for free. Regulatory bodies often charge fees, such as the Pensions Regulator’s levies or registration fees. Fortunately, these costs are also considered allowable expenses. The pension scheme must comply with various legal requirements to remain operational, so any costs directly associated with maintaining that compliance are deductible.


For example, if you pay a registration fee to the Pensions Regulator or incur a levy for maintaining scheme protection, these expenses can be deducted as they are necessary for the scheme’s regulatory compliance.


Bank Charges: Handling the Fund’s Finances

Bank charges associated with managing the pension scheme’s funds are another category of allowable expenses. Whether it’s the cost of maintaining an account specifically for the pension scheme, transaction fees for managing investments, or charges for international transfers, these expenses can be claimed as a deduction.


For example, if your pension scheme maintains an account to handle contributions and payouts, the monthly bank fees for maintaining this account can be considered an allowable expense. Similarly, any fees incurred while transferring funds to international investments can also be deducted, provided they are directly related to the pension scheme’s operations.


Scheme-Specific Insurance Premiums: Protecting the Fund

Trustees often take out insurance policies to protect the pension scheme from potential liabilities. Whether it’s trustee liability insurance or insurance to protect the scheme’s assets, these premiums are generally allowable expenses. The key here is that the insurance must be taken out to protect the scheme itself, not the personal interests of the trustees.


For example, trustee indemnity insurance, which protects trustees from personal liability for decisions made in their capacity as trustees, qualifies as an allowable expense. However, if you took out personal life insurance as a trustee, that cost wouldn’t be allowed, as it’s not directly tied to the pension scheme.


Non-Allowable Expenses: What Doesn’t Qualify?

While it’s tempting to assume that any cost incurred by trustees could be deductible, HMRC is clear that not all expenses qualify. Here’s a quick rundown of what doesn’t count:


  1. Personal Expenses: Any costs that relate to personal matters rather than the administration of the pension scheme are not allowable. For example, travel expenses for a personal holiday that happens to coincide with a trustee meeting are not deductible.

  2. Fines or Penalties: If the pension scheme incurs fines or penalties for non-compliance with tax laws or other regulations, these costs are not allowable expenses. For instance, late filing penalties for missing the SA970 deadline won’t qualify.

  3. Speculative or Unrelated Investments: As mentioned earlier, expenses incurred for speculative advice or investments unrelated to the pension scheme’s activities won’t be allowable. If you hire a financial advisor for your personal investments, this expense can’t be deducted from the pension scheme’s income.


Real-Life Example: Tom’s Trustee Dilemma

Let’s look at an example to make this clearer. Tom is a trustee for a small pension scheme that holds several investment properties. Over the last year, he’s paid for property management services, accountancy fees, and trustee indemnity insurance. He’s also attended a seminar on investment strategies, which included travel and accommodation expenses.


Here’s how it plays out:

  • Property management fees: Allowable, as they are directly tied to managing the scheme’s assets.

  • Accountancy fees: Allowable, as they relate to the financial management of the scheme.

  • Trustee indemnity insurance: Allowable, as it protects the scheme and the trustees.

  • Travel and accommodation for the seminar: This one’s tricky. If the seminar was directly related to managing the scheme’s investments, it could potentially be allowable. However, if the seminar included personal development topics, it might not qualify.


In Tom’s case, most of his expenses would be allowable, but he would need to be careful about travel and accommodation to ensure they are justified as being “wholly and exclusively” for the scheme.


Allowable expenses for pension scheme trustees in the UK cover a wide range of costs, from trustee fees and investment management charges to administrative costs and regulatory fees. The golden rule is that these expenses must be incurred wholly and exclusively for the operation of the pension scheme. Understanding what qualifies—and what doesn’t—ensures that trustees can effectively manage the scheme’s finances and claim tax relief where appropriate. Just remember to keep detailed records of every expense, as HMRC may ask you to justify these deductions at any time.



What Types of Income Need to Be Reported on the SA970 Form?

When you're acting as a trustee for a registered pension scheme in the UK, completing the SA970 form is a crucial part of your role. This form is how trustees report the pension scheme’s income and capital gains to HM Revenue and Customs (HMRC), ensuring that all tax obligations are met. But what kinds of income need to be reported? You might think it’s just the obvious stuff, like interest from investments, but there’s a bit more to it. Let’s break down the various types of income you need to report on the SA970 form, with some examples to make things clearer.


Investment Income: The Bread and Butter

At the core of most pension schemes are investments—whether in stocks, bonds, or real estate. The income generated from these investments typically needs to be reported. This can include:


  1. Interest Income: If the pension scheme holds any interest-bearing assets, such as government bonds, corporate bonds, or even interest-earning savings accounts, the interest earned needs to be reported on the SA970 form. This is pretty straightforward: if the scheme earned interest from its financial assets, it counts as taxable income and must be declared.

    Example: Let’s say the pension scheme has invested £100,000 in government bonds, earning 1.5% annual interest. That’s £1,500 in interest income that the trustees would need to report.

  2. Dividend Income: If the scheme holds shares in companies that pay dividends, this income must also be reported. Dividends are distributions of a company’s profits to its shareholders, and if a pension scheme owns stocks that provide dividends, those payments are considered part of the scheme’s income.

    Example: If the pension scheme holds £50,000 worth of shares in a company that pays a 4% annual dividend, that’s £2,000 in dividend income that needs to be reported on the SA970 form.

  3. Rental Income: Pension schemes often invest in property, and if the scheme owns commercial or residential real estate that generates rental income, that income must be declared.

    Example: Suppose the pension scheme owns a commercial property that brings in £20,000 in rent annually. The trustees will need to report this as income on the SA970.


Capital Gains: When You Sell Assets for Profit

If the pension scheme sells assets—whether they’re stocks, property, or other investments—for more than they were purchased, the resulting profit is considered a capital gain. Trustees must report any capital gains made during the tax year on the SA970 form, though it’s worth noting that pension schemes generally benefit from tax exemptions on certain capital gains.


  1. Sale of Stocks or Bonds: Let’s say the pension scheme bought shares in a company for £10,000 and sold them a few years later for £15,000. That’s a £5,000 capital gain that needs to be reported.

  2. Property Sales: The same applies to property. If the scheme owns real estate and sells it at a profit, the capital gain must be included on the SA970.

    Example: If the scheme purchased a property for £200,000 and later sold it for £250,000, that £50,000 gain would need to be reported.


While some capital gains may be exempt from taxation within a registered pension scheme, they still need to be declared to HMRC.


Repayments and Rebates

Pension schemes are often entitled to various tax repayments or rebates, which also need to be reported. For example, if the scheme overpaid tax on dividends or other income, it might be eligible for a tax repayment. These repayments should be reported on the SA970 form, as they reflect money coming back into the scheme.


Example: If the pension scheme was taxed at source on dividends but is eligible for a repayment of £500, the trustees must declare this repayment on the SA970.


Foreign Income: Don’t Forget Overseas Investments

Pension schemes often hold assets abroad, whether it’s foreign stocks, bonds, or property. If the scheme receives income from these foreign investments, that income must be reported on the SA970 form, even if it’s already been taxed in the country of origin.


  1. Foreign Dividends: If the pension scheme holds shares in overseas companies and earns dividends, those dividends need to be declared.

    Example: Suppose the scheme owns shares in a US-based company that pays £3,000 in dividends. Even though the US may have taxed the dividends at source, they still need to be reported to HMRC on the SA970 form.

  2. Foreign Rental Income: If the scheme owns property abroad and earns rental income from it, that also needs to be declared.

    Example: The pension scheme owns a holiday property in Spain and earns £10,000 in rent annually. This income must be reported on the SA970 form, even if it’s already subject to Spanish tax.


Foreign income can get a bit tricky because of double taxation treaties. The UK has treaties with many countries to prevent pension schemes from being taxed twice on the same income. However, the foreign income must still be declared, and HMRC will determine whether any relief is due.


Other Types of Income

While the most common types of income—interest, dividends, capital gains, and rental income—tend to dominate the SA970 form, there are other less common types of income that may also need to be reported.


  1. Royalties: If the pension scheme owns intellectual property (IP) rights, such as patents, trademarks, or copyrights, and earns royalties from licensing those rights, the royalties must be reported.

    Example: If a pension scheme owns a patent on a technology that earns £15,000 in royalties, that income must be declared.

  2. Partnership Income: If the pension scheme is part of a partnership or joint venture and receives a share of the profits, that income must also be reported.

    Example: Suppose the pension scheme is a partner in a business venture that earns £50,000, and the scheme’s share is £10,000. That £10,000 must be included as income on the SA970 form.

  3. Annuity Payments: If the pension scheme is entitled to annuity payments, those must be reported as income as well.

    Example: Let’s say the pension scheme receives annual annuity payments of £5,000 from an insurance product. This income should be declared on the SA970.


Income That Doesn’t Need to Be Reported

Although the SA970 form covers a wide range of income, not all income received by a pension scheme needs to be reported. For instance:


  • Contributions from Employers or Employees: Pension contributions made by an employer or employees into the scheme do not count as income and do not need to be declared on the SA970 form. These contributions are not taxable, so they’re excluded from the income reporting process.

    Example: If an employer contributes £20,000 into the pension scheme on behalf of its employees, this contribution does not need to be reported as income.

  • Tax-Exempt Investment Income: Certain types of income may be entirely tax-exempt for pension schemes. For example, in some cases, pension schemes can receive dividends from UK companies without any tax being due, and such income does not need to be reported.

    Example: If the scheme receives £3,000 in dividends from UK-listed companies that qualify for tax exemption, this income doesn’t need to be declared on the SA970 form.


How to Report the Income Correctly

Once you’ve gathered all the relevant income details, the next step is reporting them correctly on the SA970 form. Each type of income has its own section on the form, so it’s important to allocate the income to the correct category. This ensures that HMRC can assess the tax liability correctly and avoid any mistakes that could trigger penalties.


Example: You’ve received £2,000 in interest income, £5,000 in dividends, and £15,000 in rental income. When completing the SA970, you’ll need to report these amounts under the appropriate sections for “interest,” “dividends,” and “rental income.”


The SA970 form is a critical tool for trustees managing registered pension schemes, as it ensures that all relevant income is reported to HMRC. From investment income and foreign earnings to capital gains and rental income, a wide variety of income types must be declared. By staying on top of the pension scheme’s financial activities and reporting all taxable income correctly, trustees can avoid penalties and ensure that the scheme remains compliant with UK tax regulations. Keeping detailed records of all income sources will make the SA970 filing process much smoother and keep HMRC happy.



Explanation and Relevance of the Various Guides and Calculation Forms for the SA970 Form

When managing the tax affairs of a registered pension scheme in the UK, trustees are required to submit the SA970 form to HM Revenue & Customs (HMRC) to report the scheme's income, capital gains, and any tax liabilities. To assist trustees in this process, HMRC has published several guidance and calculation documents that provide step-by-step instructions, clarifications, and support in completing the form accurately. Here, we’ll explore the relevance of the specific guides and calculation forms for the SA970, including those from 2021 to 2024.


1. Tax Return for Trustees of Registered Pension Schemes Guide (2024) — SA975

  • Size: PDF, 1 MB, 12 pages

  • Purpose: The SA975 guide provides detailed instructions on how to complete the SA970 form. This guide breaks down the sections of the SA970 form, explaining the information that trustees need to include, such as reporting income, capital gains, and any tax repayments.

  • Relevance: Trustees can use this document as a step-by-step manual for accurately completing the SA970 form. It covers common queries that trustees may have while filling in details like dividends, property rental income, and allowable deductions. It is particularly relevant for trustees managing more complex schemes with varied sources of income.


2. Tax Return for Trustees of Registered Pension Schemes Calculation Guide (2024) — SA976

  • Size: PDF, 528 KB, 5 pages

  • Purpose: This guide provides the mathematical calculations needed to figure out the exact tax liability or repayment due for the pension scheme. The SA976 guide helps trustees understand how to apply the relevant tax rates, account for tax deductions, and calculate the final amounts that need to be reported on the SA970.

  • Relevance: For trustees who are responsible for performing their own tax calculations rather than relying on HMRC to do it, the SA976 guide is invaluable. It explains in detail how to calculate income tax, capital gains tax, and any adjustments related to overpayments or underpayments.


3. Tax Return for Trustees of Registered Pension Schemes (2023) — SA970

  • Size: PDF, 268 KB, 7 pages

  • Purpose: This is the actual tax return form that trustees must submit to HMRC. It captures all the relevant financial information of the pension scheme for the tax year.

  • Relevance: Trustees use this form to report the scheme’s financial transactions, including investment income, capital gains, and any tax payments made throughout the year. Submitting this form accurately and on time is critical to complying with tax regulations and avoiding penalties.


4. Tax Return for Trustees of Registered Pension Schemes Guide (2023) — SA975

  • Size: PDF, 569 KB, 12 pages

  • Purpose: Similar to the 2024 version, this guide helps trustees navigate the process of completing the SA970 form for the 2023 tax year. It offers insights into reporting the scheme’s income, expenses, and any tax credits.

  • Relevance: This guide ensures that trustees don’t miss any critical information when completing the SA970 for the 2023 tax year. It’s a comprehensive reference to help trustees meet all reporting obligations and ensure compliance.


5. Tax Return for Trustees of Registered Pension Schemes Calculation Guide (2023) — SA976

  • Size: PDF, 307 KB, 5 pages

  • Purpose: The SA976 guide for 2023 lays out the specific tax calculation methods trustees need to follow when completing the SA970 form. It covers how to calculate taxes on income and capital gains based on the specific circumstances of the pension scheme.

  • Relevance: This document helps trustees perform accurate tax calculations for their pension scheme. It’s particularly useful for ensuring that trustees don’t underpay or overpay taxes, both of which can lead to penalties or unnecessary tax burdens.


6. Tax Return for Trustees of Registered Pension Schemes (2022) — SA970

  • Size: PDF, 616 KB, 7 pages

  • Purpose: The SA970 form for the 2022 tax year is used to report the pension scheme’s financial information to HMRC.

  • Relevance: As the primary document for reporting income, capital gains, and tax liabilities, this form is critical for ensuring that the pension scheme complies with UK tax laws. Any discrepancies or failures to report accurately can lead to penalties.


7. Tax Return for Trustees of Registered Pension Schemes Guide (2022) — SA975

  • Size: PDF, 583 KB, 12 pages

  • Purpose: The 2022 version of the SA975 guide serves the same purpose as its successors—helping trustees complete the SA970 form. It offers instructions on filling out the form and highlights any changes in the tax treatment of pension schemes for that year.

  • Relevance: Trustees managing pension schemes for the 2022 tax year would rely on this guide to ensure that they’re meeting all HMRC reporting requirements. The guidance provided helps to avoid common mistakes and missed deductions.


8. Tax Return for Trustees of Registered Pension Schemes Calculation Guide (2022) — SA976

  • Size: PDF, 311 KB, 5 pages

  • Purpose: This guide outlines the specific calculations trustees need to make when determining their tax liabilities for the 2022 tax year.

  • Relevance: Just like the 2023 and 2024 versions, this guide is key for trustees who need to calculate their scheme’s tax liabilities accurately. Mistakes in calculations could result in overpayments or penalties for underpayment.


9. Tax Return for Trustees of Registered Pension Schemes (2021) — SA970

  • Size: PDF, 250 KB, 7 pages

  • Purpose: The SA970 form for the 2021 tax year is used to report the financial status of the pension scheme.

  • Relevance: Trustees must complete this form for the 2021 tax year, ensuring all income and gains are reported correctly. Failure to submit an accurate form can result in significant penalties.


10. Tax Return for Trustees of Registered Pension Schemes Guide (2021) — SA975

  • Size: PDF, 561 KB, 12 pages

  • Purpose: The 2021 version of the SA975 guide provides detailed instructions on how to complete the SA970 form for that tax year.

  • Relevance: Trustees managing pension schemes in the 2021 tax year would find this guide essential for navigating the complexities of tax reporting.


11. Tax Return for Trustees of Registered Pension Schemes Calculation Guide (2021) — SA976

  • Size: PDF, 302 KB, 5 pages

  • Purpose: This guide focuses on tax calculations for the 2021 tax year and explains how to determine the correct amount of tax due.

  • Relevance: Trustees relying on accurate calculations for their tax submissions in 2021 would use this guide to ensure compliance with HMRC’s expectations.


Each of these forms and guides is designed to help trustees of registered pension schemes navigate the often complex tax reporting process. While the SA970 form is the primary document for reporting financial information to HMRC, the SA975 guides help trustees understand how to complete the form, and the SA976 guides assist with calculations. It’s crucial that trustees refer to the correct versions of these documents for the relevant tax year to ensure compliance and avoid penalties.


How Can a Personal Tax Accountant Help You with Self Assessment: Tax Return for Trustees of Registered Pension Schemes (SA970)


How Can a Personal Tax Accountant Help You with Self Assessment: Tax Return for Trustees of Registered Pension Schemes (SA970)?

Filing a Self Assessment tax return as a trustee of a registered pension scheme in the UK can be a daunting and complex task, especially when dealing with form SA970. Trustees have a legal responsibility to ensure the accurate reporting of the pension scheme’s income, gains, and other financial details to HMRC. A personal tax accountant can provide valuable assistance throughout this process, reducing stress and ensuring compliance with tax regulations. In this article, we'll explore the key ways a tax accountant can help trustees manage their SA970 obligations more effectively.


1. Expertise in Pension Scheme Taxation

One of the primary reasons to hire a tax accountant is their specialized knowledge of UK tax laws, particularly those relating to pension schemes. Taxation for registered pension schemes is governed by a complex set of rules, which often change from year to year. For example, trustees must navigate issues such as:


  • Income from investments and capital gains.

  • Tax relief on certain pension contributions and transactions.

  • Reporting obligations based on UK and foreign assets.


A tax accountant understands the intricacies of pension scheme taxation and can ensure that trustees are following the latest regulations. This expertise helps trustees avoid errors or omissions that could result in penalties, fines, or investigations by HMRC.


2. Accurate and Timely Completion of the SA970 Form

Form SA970 is the official document for reporting the financial activities of a registered pension scheme. This form must be filled out accurately and submitted by specific deadlines to avoid penalties. The information required on the SA970 form includes:


  • Income from UK and overseas investments.

  • Tax reclaimed or not reclaimed.

  • Trading income or income under a deed of covenant.

  • Taxable chargeable gains.


Each of these sections requires precise and detailed information. Even a small error in calculating taxable income or deductions can lead to delays, fines, or further scrutiny by HMRC. A personal tax accountant can ensure that all sections of the form are completed correctly and submitted before the deadlines, minimizing the risk of penalties.


3. Tax Planning and Efficiency

A personal tax accountant not only helps with tax reporting but also provides valuable advice on tax planning. Trustees can benefit from understanding how to manage the pension scheme’s investments in a tax-efficient way. This might include:


  • Maximizing tax relief on pension contributions.

  • Making the most of allowances available to registered pension schemes.

  • Structuring investments to minimize tax liability on income and capital gains.


For instance, trustees might invest in tax-efficient assets or adjust their timing of asset sales to benefit from favorable tax treatment. An accountant can help trustees devise a tax strategy that optimizes the pension scheme’s financial position while staying compliant with the law.


4. Handling Complex Financial Scenarios

Registered pension schemes often have complex financial arrangements, such as foreign investments, multiple income streams, or significant capital gains. Managing these complexities is a challenge for trustees without financial expertise. A personal tax accountant has the experience to handle such scenarios with confidence. Here’s how they can help:


  • Foreign income and tax treaties: Many pension schemes invest in foreign markets, leading to income from overseas dividends, interest, or property. Trustees must ensure that this foreign income is reported correctly and that any tax relief available under double taxation treaties is claimed. A tax accountant can navigate the rules on foreign income, ensuring proper documentation and reporting.

  • Capital gains: Pension schemes may realize significant gains from selling assets like property or investments. These gains need to be reported, and any exemptions or reliefs, such as Business Asset Disposal Relief (formerly Entrepreneurs' Relief), need to be calculated. A tax accountant helps trustees manage these gains and ensures compliance with tax reporting obligations.

  • Trading income: If a pension scheme has business-related income, it must be reported in the trading income section of the SA970 form. A tax accountant can accurately calculate the scheme’s profits and ensure that the right expenses are deducted to minimize tax liabilities.


5. Reducing the Risk of HMRC Penalties and Investigations

Filing incorrect or incomplete information on the SA970 form can trigger penalties from HMRC, starting with a £100 fine for late submission and escalating for extended delays. In more serious cases, providing false or inaccurate information could lead to an HMRC investigation. Penalties for inaccurate reporting can range from 20% to 100% of the underpaid tax, depending on the nature of the error (e.g., careless vs. deliberate).

By ensuring accurate and complete submissions, a personal tax accountant helps trustees avoid these costly errors. If there is any uncertainty regarding specific transactions or income types, the accountant can seek guidance from HMRC or other professionals, ensuring that all reporting obligations are met without risk of penalties.


6. Help with Record Keeping and Documentation

Accurate record-keeping is critical for trustees managing a pension scheme. Trustees must maintain records of all income, expenses, and financial transactions for at least six years. These records are essential for completing the SA970 form and for future audits or investigations by HMRC.


A tax accountant can assist trustees in setting up efficient record-keeping systems that ensure all necessary documentation is preserved. This might involve:


  • Setting up digital record systems that can be easily accessed and reviewed.

  • Ensuring that all investment documents, receipts, and tax-related correspondence are properly stored and categorized.

  • Advising on how to handle documentation for foreign investments, particularly where multiple currencies and tax jurisdictions are involved.


By maintaining well-organized and accurate records, trustees can complete their SA970 form with confidence, knowing that all required information is readily available.


7. Assistance with HMRC Queries and Audits

If HMRC has any questions about the information provided in the SA970 form or initiates an audit of the pension scheme’s tax affairs, having a tax accountant on board is a major advantage. A personal tax accountant can:


  • Act as a liaison between the trustees and HMRC.

  • Provide any additional documentation or clarification requested by HMRC.

  • Represent the pension scheme during an audit, ensuring that trustees comply with all legal requirements.


In cases where mistakes have been made, a tax accountant can help negotiate with HMRC to reduce penalties or correct any errors in the most favorable way possible.


8. Staying Updated with Regulatory Changes

Tax laws and regulations surrounding pension schemes frequently change. For example, recent years have seen adjustments to pension contribution limits, tax reliefs, and capital gains tax rules. A personal tax accountant keeps trustees updated on these changes, ensuring that the pension scheme remains compliant with current regulations. This helps trustees avoid unintentional breaches of the law and ensures that they are always working with the most up-to-date information.


9. Stress-Free Tax Filing Process

Finally, one of the biggest benefits of working with a personal tax accountant is the peace of mind it provides. Managing a pension scheme’s tax affairs is a serious responsibility, but with the support of an experienced accountant, trustees can be confident that everything is being handled correctly. Instead of worrying about meeting deadlines, navigating complex tax rules, or dealing with HMRC inquiries, trustees can focus on their core responsibilities of managing the pension scheme effectively.


A personal tax accountant is an invaluable resource for trustees of registered pension schemes when it comes to completing the SA970 form and managing tax obligations. From ensuring accurate reporting and maximizing tax efficiency to handling complex financial situations and minimizing the risk of penalties, a tax accountant provides the expertise and support trustees need. By working with an accountant, trustees can navigate the complexities of pension scheme taxation with confidence and ensure that their scheme remains fully compliant with HMRC requirements.



FAQs


1. What happens if a trustee fails to file the SA970 form on time?

If the SA970 form is not filed by the deadline, HMRC imposes an automatic penalty of £100. Further penalties are added for delays beyond three months, potentially reaching £1,600 for longer delays.


2. Can the SA970 form be filed online?

As of July 2024, the SA970 form cannot be filed online. Trustees must complete and submit the form via paper directly to HMRC.


3. What is the tax treatment of pension income within a registered pension scheme?

Income generated within a registered pension scheme is usually exempt from tax. However, trustees must report any income that exceeds the allowable thresholds and could attract tax liability.


4. How long must trustees keep financial records for a pension scheme?

Trustees are legally required to keep financial records for a minimum of six years, ensuring they can provide documentation if requested by HMRC.


5. What qualifies as an allowable expense for pension scheme trustees?

Allowable expenses include trustee fees, investment management fees, and administrative costs directly related to the management of the pension scheme.


6. How is tax calculated on capital gains within a pension scheme?

While pension schemes often benefit from tax exemptions on capital gains, any realized capital gains must be calculated by subtracting the purchase price and associated costs from the sale price.


7. Are there penalties for incorrect information provided on the SA970 form?

Yes, penalties for providing incorrect information depend on the severity of the error, ranging from 0% to 100% of the additional tax due, depending on whether the error was careless or deliberate.


8. What is a trustee’s fiduciary duty in relation to tax reporting?

A trustee’s fiduciary duty is to act in the best interests of pension beneficiaries, which includes accurately reporting and paying taxes related to the pension scheme’s activities.


9. Can a trustee appeal an HMRC penalty for late filing?

Trustees have the right to appeal penalties if they believe they have a reasonable excuse, but HMRC applies strict criteria to such appeals.


10. How does HMRC calculate late payment interest on unpaid tax?

HMRC applies daily compounded interest on any unpaid tax, starting from the payment deadline. The rate changes periodically and is based on market interest rates.


11. What are payments on account, and when must they be made?

Payments on account are advance tax payments for the current tax year, based on the previous year’s liability. They are due in two installments: by 31 January and 31 July.


12. Can trustees claim tax relief on pension scheme expenses?

Yes, trustees can claim tax relief on certain expenses related to the operation of the pension scheme, provided they are directly related to the scheme’s management.


13. Do trustees need to report investment income from tax-exempt assets?

Even if a pension scheme holds tax-exempt assets, trustees must report any income or gains from those assets to HMRC if they exceed exemption thresholds.


14. How can trustees avoid penalties for deliberate non-compliance?

Trustees can avoid penalties by ensuring they provide accurate and complete information, submit returns on time, and seek professional advice when necessary.


15. What types of income need to be reported on the SA970 form?

Trustees must report income from investments such as dividends, interest, rental income, and any other financial gains made by the pension scheme during the tax year.


16. Can trustees of a pension scheme make voluntary tax payments?

Yes, trustees can make voluntary payments on account to cover anticipated tax liabilities, which helps avoid interest charges and late payment penalties.


17. Are trustees required to report gains on foreign investments?

Yes, trustees must report any gains from foreign investments held within the pension scheme, and these gains may be subject to UK taxation.


18. How are errors on the SA970 form corrected after submission?

Trustees can correct errors on the SA970 form by filing an amended return with HMRC or contacting HMRC directly to resolve the issue.


19. What are the tax implications if a pension scheme is wound up?

When a pension scheme is wound up, trustees must report all outstanding tax liabilities and any final distributions or asset sales on the SA970 form.


20. What should trustees do if they do not receive a tax return request from HMRC?

If HMRC does not issue a request to file the SA970 form, but trustees believe they have a tax liability, they are still required to submit a return and must contact HMRC to obtain the necessary forms.


Disclaimer:

The information provided in our articles is for general informational purposes only and is not intended as professional advice. While we strive to keep the information up-to-date and correct, My Tax Accountant makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained in the articles for any purpose. Any reliance you place on such information is therefore strictly at your own risk.


We encourage all readers to consult with a qualified professional before making any decisions based on the information provided. The tax and accounting rules in the UK are subject to change and can vary depending on individual circumstances. Therefore, My Tax Accountant cannot be held liable for any errors, omissions, or inaccuracies published. The firm is not responsible for any losses, injuries, or damages arising from the display or use of this information.




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