Pension schemes and unauthorised payments
Payments made outside the tax rules are classed as unauthorised and tax charges are payable.
Official website: gov.uk00
How to use the service
If you’re a scheme administrator read the guidance on how to pay tax HMRC.
Fees
The tax rules specify the conditions that need to be met for payments to be authorised. Any payment that does not meet these conditions is an unauthorised payment. Common examples of situations where payments are classed as unauthorised include: trivial lump sums in excess of £30,000 continued payments of pension after the member’s death when a scheme realises it incorrectly calculated the amount of the member’s pension pot following a transfer of funds or purchase of an annuity and the balancing payment is made directly to the member most lump sum payments to cash-in or access pension funds before age 55 except when: the member retires due to ill health if before 6 April 2006 the member had the right under the pension scheme to take their pension before age 55 Certain movements of pension funds within a pension scheme are also classed as unauthorised payments. Scheme administrators must report all unauthorised payments on an event report for that scheme.
Official source
Pension schemes and unauthorised payments
retrieved: