A Free Standing Additional Voluntary Contributions Scheme (FSAVCS) is a retirement benefits scheme established solely to accept contributions from employees to top up benefits provided by their employers' pension schemes.
The right to pay additional voluntary contributions (AVCs) to an FSAVCS is available only to employees while they are accruing benefits under an approved retirement benefits scheme (or such a scheme being considered for approval) or a relevant statutory scheme of their present employer or to which that employer contributes. This requirement will be regarded as met even if the individual is covered only for death in service benefits under his employer's approved retirement benefits or relevant statutory scheme(s). If the member withdraws from all such schemes of the employer while still in service, contributions to the FSAVCS must cease. Contributions may continue, or even commence, after the normal retirement date provided that benefits continue to accrue under the main scheme. No contributions may be paid after the relevant date.
An employee must not contribute to more than one FSAVCS in respect of the same employment in any one tax year. This requirement does not affect the individual's right to pay, at the same time, AVCs to an approved retirement benefits scheme or a relevant statutory scheme of the employer, provided the limit of the member's earnings from the employment for that year is not exceeded.
Controlling directors must be excluded from membership. If a member becomes a controlling director contributions must cease at once. Conversely, if he or she ceases to be a controlling director, contributions may be started or resumed.
For more information on Free standing Voluntary contribution please see http://www.hmrc.gov.uk/pensionschemes/ir12_supp.pdf
To access this utility, click Employer:
1) Click Add within the Pension Schemes section on the menu toolbar
2) Enter your Employer Contracted-Out Number (ECON) in the field provided at the top of the screen, if applicable
3) Under Name, enter the name of the policy and the reference number provided by the pension company
4) Type of Scheme - select Free Standing Additional Voluntary Contribution Scheme from the drop down menu
5) Reduction - if applicable, tick the box to reduce contributions by the basic tax rate
6) Within the Contact and Payment section, enter the contact details of the FSAVCS pension provider
7) Under Payment, select the method of payment for remitting the pension contributions to the pension provider. If the method of payment is credit transfer, enter the pension provider's bank account details accordingly. A bank payment file facility is available within Payroll for the payment of pensions to the pension provider
8) Click Save
To apply the FSAVC to an employee, click Payroll:
TO ENTER A PENSION DEDUCTION BY AMOUNT:
1) Under Additions & Deductions click the Add icon
2) Under Deductions > Pension, select the FSAVC
3) Select the £ sign from the drop down menu and enter the Employee Contribution
TO ENTER A PERCENTAGE-BASED PENSION:
1) Under Additions & Deductions click the Add icon
2) Under Deductions > Pension, select the FSAVC
3) Select the % sign from the drop down menu and enter the Employee Contribution percentage amount
To access this utility, click Payroll:
1) Select the employees you wish to include in the bank payment file
2) To create the Bank Payments File, click Create BACS File
3) Select the Bank Account you wish to pay from and select the appropriate bank File Format
4) Click Save As to save the bank file to a location of your choice. The bank payment file is now created and can be uploaded through your bank facility when ready.
5) To print the Pension Payment Report, simply click Print
6) To export the Pensions Payment Report, click Export (the report can be copied to excel, CSV, XPS or copied to clipboard.)
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