From 6 April 2014 Scheme Contracted-Out Numbers (SCON) will be mandatory in Full Payment Submissions if an employee is a member of a COSR (Contracted-out Salary Related) pension scheme.
Previously they were optional. These are used by HMRC to identify the pension scheme that an employee belongs to and to validate SCON data.
Employees in COSR schemes use NI category letters D, E or L. HMRC will contact employers that do not include a SCON in the FPS.
This message will be displayed: SCON must be provided for employees with NI category letter D, E or L.
Calculation Warning
The message will also be included on the report shown after a calculation is run for a pay period if employees with NI category letters D, E or L are found.
New Calculation Report message
Entering SCON Numbers
SCON numbers are recorded on these forms:
• On the Pension Scheme form (if ‘Advanced Pension Processing’ is in use) - accessed from the Payroll - Maintenance menu)
• On the Details & Bank form (if ‘Advanced Pension Processing’ is not in use) - accessed from the Payroll - Processing form).