Annual allowance tax charges
If you are a high earner you may exceed your annual allowance and be liable for a tax charge. Your Personal Pension Statement (PPS) will indicate how much you owe.
If you are liable you have two options for payment, either direct to HMRC or via USS 'Scheme Pays'.
Payment using Scheme Pays
You can elect to have USS pay the tax charge direct from your pension pot. Further details are available in the USS leaflet 'Limits to tax relief and tax-free benefits'.
Tax year 2012/13 onwards
For USS to pay your liability for years 2012/13 onwards you must advise USS no later than 31 July. For example, if you exceeded your allowance in 2012/13 pension input period, USS must receive an election for Scheme Pays by 31 July 2014
Please note: USS are aware that there are a small number of outstanding queries with regard to tax statements and annual allowance calculations. If these remain unresolved, members are asked to submit the Scheme Pays election based on the original figures. If required, they will make an amendment after the deadline date. It is important that the original notice is still received by USS before 31 July 2014
If you have any questions about your Annual Allowance or Scheme pays, in the first instance, please contact USS.