Incorrect SSAS schemes could incur huge fines from regulators

Firms using small self administered schemes (SSAS) could be liable for substantial fines if they fail to abide by the rules. Fines can be issued by HMRC if there is no professional scheme administrator and formal duties of administering the scheme rest with members not carrying them out correctly.Fines can vary from £100 plus £60 a day for failing to submit a pension scheme return, up to £3,000 for providing incorrect information/ submitting incorrect pension scheme returns and 14 years in jail for money laundering.HMRC is not the only organisation to monitor SSASs. They are also regulated by the Pensions Regulator, Information Commission and anti-money laundering regulations.The Pensions Regulator can impose fines of £50,000 where regulation breaches have occurred while costs for data protection complaints can total £500,000.FAILINGS and PENALTIESFailure to provide information requested, £300 plus £60 a dayNegligent or fraudulent provision of incorrect information, Up to £3,000Failure to keep records or documents, Up to £3,000Failure to submit a Pension Scheme Return, £100 plus £60 a dayNegligent or fraudulent submission of an incorrect Pension Scheme Return, Up to £3,000Failure to produce documents requested, £300 plus £60 a dayNegligent or fraudulent production of incorrect documents, Up to £3,000Failure to submit an accounting for tax form, £100 per quarter for each ten reportable individualsNegligent or fraudulent production of an incorrect Accounting for Tax Return, the unpaid tax dueSerious breaches of regulations resulting in penalties imposed by HMRC Tribunal, 40% of the value of the fund, withdrawal of the pension scheme's registered status and the fund becomes fully taxable.Unauthorised payment charges for non-allowable investments or incorrectly calculated benefits, tax charges of between 55% and 70% imposed on the recipient of the funds and the Scheme Administrator. • Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.

Incorrect SSAS schemes could incur huge fines from regulators

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