A pension scheme administrator is required to tell HMRC if they have claimed too much relief at source for pension scheme members. This must be done within 90 days of discovering that too much relief has been claimed. The administrator should:
- report the excess relief to HMRC on the interim claim;
- send information about the excess relief with that claim; and
- repay the excess amount
Guidance on the procedure to be followed, together with a template in spreadsheet format which can be used to send the information to HMRC, is available on the Gov.uk website.
If the excess relief is not repaid to HMRC within 90 days of discovering the error, interest will be charged from the date the excess relief was paid to the scheme administrator. However, there is no need to report details of Scottish taxpayers paying tax at the starter rate of 19% and who have received relief at source at 20%.