23 September 2025
If your contributions in the previous tax year were higher than the standard annual allowance (AA), Fidelity will send you a Pension Savings Statement in October.
You might have to pay a tax charge to HMRC if this happens – usually through Self-Assessment, but you can also ask the Fund to pay the charge on your behalf, provided certain conditions are met.
If it’s allowed, an amount equal to the charge will be paid by the Fund directly to HMRC. This is known as ‘Scheme Pays’, and it will reduce the size of your benefit from the Fund at retirement.
If you’ve exceeded the standard AA in 2024/25 and a tax charge is due, you have until 31 July 2026 to apply for Scheme Pays. If you qualify for Voluntary Scheme Pays (where the charge is less than £2,000) or exceed the tapered or money purchase annual allowance, we must get your Voluntary Scheme Pays form by 30 November 2025.