HMRC have launched an online service for overseas scheme managers and UK scheme administrators of qualifying recognised overseas pension schemes (QROPS).
Users of the new offering can notify the Revenue that a scheme is a recognised overseas arrangement, and report payments made out of funds received from a UK pension scheme.
The system also allows managers to notify tax officials of fund value, change to details or status, and additional information required for schemes that were formerly QROPS.
HMRC have confirmed that taxpayers in Scotland with benefit from an income tax break on their pensions at the local rate.
The announcement follows work between the department and pensions industry to identify ways to deliver Scottish basic rate relief through the relief-at-source (RAS) process.
The Scottish rate of income tax (SRIT) is expected to be implemented in April 2016, after being introduced in the Scotland Act 2012.
Reader feedback
HMRC have made changes to the processes for pension registration and transfers between schemes. The new set up, which is effective from this month, is aimed at deterring pension liberation and safeguarding retirement savings.
The registration process is to move away from a ‘process now, check later’ approach, meaning registration will no longer be confirmed on successful submission of an online form.
HMRC have launched an online tool to help employees check whether or not they need to calculate their annual allowance tax liability, even if they have not received a pension statement.
Pension providers should have recently sent annual allowance statements for 2011/12 and 2012/13 to members who have contributed more than the maximum £50,000 a year to a scheme. The issue of statements was a legislative requirement of FA 2011.
By Robert Gaines; £87.50 (incl p&p); Claritax Books
HMRC have issued updated guidance, a new tool and form to allow pension scheme members to apply for fixed protection 2014.
Taxpayers will need to know their National Insurance number to use the form, which must to be completed in one attempt. It cannot be saved and reopened later. Onscreen assistance can be accessed via the question mark icons. (Those who prefer not to use the online service can complete a paper version.)
Stephen Charles Willey (TC2731)
A client has turned 60 and has been advised that he is entitled to a pension as a result of a relatively short period of employment in the civil service many years ago. He pays tax at 40% on earnings, meaning he would prefer to defer payment of the pension until he retires from full-time employment, but will the tax liability also be deferred?
The taxpayer has received a pension payment relating to the protected rights of his late wife. Tax has been deducted under PAYE, but does this income form part of relevant UK earnings?
Joost Lobler (TC2539)
The government provides valuable reliefs for pension premiums, but complications can arise