Towards the end of last year, HMRC received criticism for its draft guidance over how consultancy charges would be applied if only a portion of employees advised agree on joining a pension scheme. However, following the criticism, HMRC have updated the guidelines, which now state that the cost of the advice fro setting up a personal pension scheme or a group personal pension scheme would be met from the funds of those employees who join.
Following the publication of the revised guidelines, a spokesperson for HMRC said: “The pensions industry raised concerns with HMRC about guidance it had published at the end of last year about the impacts of adviser charging on members of registered pension schemes.
“As requested by the pensions industry, the updated guidance also gives customers additional assurance on the treatment of consultancy charges, which are paid to firms advising employers on pension provision for employees.”
The new guidelines on adviser charging for personal and group pensions also advises that adviser charges payable in connection with annuity purchases would not affect the maximum tax free lump sum payable.
For more information, please visit www.milsted-langdon.co.uk
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