You must use the residency status information provided by HMRC. You can find this in your annual notification of residency status report for existing members. It can take up to 2 tax years for a new member to be included on your annual report. Find the residency status of new members The guidance includes the news that a service will be available in the near future which you’ll be able to use in order to look up the residency status of any member not on the annual report.
Until the look up service is available, use the ‘rest of UK’ residency status for new members.
Access the guidance through the link below:
Check a pension scheme member's residency status for relief at source
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Government removes ‘auto guidance’ from Financial Guidance and Claims Bill 2 February 2018
The government has removed an amendment to the Financial Guidance and Claims Bill which would have automatically enrolled people into guidance as they seek to access their pension pots or transfer benefits.
Pensions Expert has reported that due to the amendment of the bill, providers will instead have to ask customers wanting to make use of the pension freedoms whether they have received ‘appropriate pensions guidance or appropriate independent financial advice’. If neither guidance nor advice has been received, the provider will have to recommend obtaining guidance or advice. Providers will also be required to ask the member if they wish to wait until receiving guidance or advice before accessing their pot or transferring, or proceed without it. The Work and Pensions Committee had previously recommended mandatory guidance, while pensions minister Guy Opperman had highlighted the need “for people to receive a further nudge” towards guidance, during a recent debate in the House of Commons. "I am really disappointed the government seems to have bowed to industry pressure and proposes to weaken consumer protection for pension customers. By removing a clause introduced in the House of Lords, designed to protect consumers' pensions better, more people are at risk of losing their hard-earned savings in scams, frauds and unwise pension withdrawals. The scrapped amendment would have seen people automatically enrolled into guidance if they were taking benefits under pension freedom or were transferring benefits. Instead, providers will now be tasked with asking customers whether they have received "appropriate pensions guidance or appropriate independent financial advice", whether they would like to wait to have some, or whether they would prefer to continue without any. According to an article by Professional Adviser , Ros Altmann, the former pensions minister said:
The government wants to water down the consumer protection and just require providers to tell people about the guidance, rather than make an appointment for them. Providers already have a duty to 'signpost' people.”
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Pension schemes newsletter 95 - January 2018 2 February 2018
HMRC’s latest pension schemes newsletter includes further information on relief at source for Scottish income tax, including the promise of another progress report mid-February.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 472 of 516
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