QROPS Online Service Created By HMRC
An online service has been made available by HM Revenue and Customs (HMRC), which allows scheme managers and administrators of QROPS (Qualifying Recognized Overseas Pension Schemes) to report information regarding taxation to the appropriate bodies.
Moving the process online has been motivated by speed and security, both of which are quicker and better online compared to the older paper alternative. For those still in the dark regarding QROPS, it allows the pension entitlements of UK taxpayers to be transferred to another jurisdiction on a tax-free basis, where that individual is now a permanent resident.
Shifting the process online has made everyone’s life who is concerned easier
The new system will have one big benefit. Allowing scheme managers from overseas to notify or re-notify HMRC that a scheme is a known overseas pension scheme. Furthermore, the online process will also allow payments made out of funds received from a pension scheme in the UK to be reported; any changes can be reported; and any additional information that is needed for the schemes that used to be QROPS can also have to be reported.
Having an online service in some respects makes life simpler and faster. This new service will make it considerably easier to send reports about multiple transfers or scheme members at the same time, which will obviously save time. Any scheme manager who in the past notified HMRC that a scheme was was recognized as an overseas pension scheme, will find a Scheme Manager ID and Activation Token will be sent to them in the post which will allow them to use the new service. Initially HMRC has said that the letters would be posted in advance of the scheme going live. But it has now come out and said that letters may not arrive until the new year.
UK scheme administrators are not exempt from using the new process. They will be able to use it to notify HMRC that a pension scheme registered in the UK has moved sums or assets to a QROPS. The Pension Schemes Online system is where the schemes homepage can be found, and administrators will be able to access this service using their current details.