This charge applies to ‘surchargeable’ unauthorised member payments and ‘surchargeable’ unauthorised employer payments (FA 2004, s. 209(2)).

The rate of charge is 15 per cent, but the rate may be changed by Treasury Order (FA 2004, s. 209(6), (7)).

Surchargeable unauthorised member payments

An unauthorised member payment is surchargeable if it and any other unauthorised member payments made in a ‘surcharge period’ of less than 12 months, equals or exceeds the ‘surcharge threshold’ (FA 2004, s. 210(1), (2)).

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