If your schemes or the sponsoring employer of your scheme is struggling to meet the levy payment within the 28-day timeframe there are ways to extend your payment terms.
Under current legislation all pension schemes have to pay the levy within 28 days. An interest charge for late payment of the levy – currently five per cent above the Bank of England base rate – is payable if the 28 day term isn’t met. However we understand this may not be possible for some.
Apply for a payment plan
Our payment plan policy allows you to apply for a payment plan if you can prove you’re genuinely struggling to meet the levy payment within the 28 day timeframe.
A payment plan allows you to pay the levy in monthly instalments over a period of more than 90 days. Typically with reduced interest charges if a payment plan application is authorised.
You’ll need to provide evidence that proves financial hardship with an explanation of why the evidence is relevant.
Typically, zero interest will be accrued in the first 90 days. The following 60 days will accrue at a reduced rate of 3% and a standard rate of 5% above the Bank of England base rate applied thereafter.
You can only apply for a payment plan after you receive your levy invoice.
To apply please complete our payment plan request form. More information about payment plans can be found in our guidance.