When the government prints a wealth warning on the list of QROPS providers open to transfers from UK pension schemes, then it’s a message you ignore at your own peril.
Every month, HM Revenue and Customs updates the list of worldwide QROPS (Qualifying Recognised Overseas Pension Scheme) providers and adds some riders that are designed to make anyone opening a QROP scheme sit up and pay attention.
The list is available for download in Adobe Acrobat PDF format from the HMRC web site.
The list includes about 1,500 QROPS schemes from across the world.
This is what the disclaimer is saying to you as an investor:
Providers are on the scheme by consent, so not every provider is listed. This begs the question of how do you know if a scheme is not a scam if the details are not on the list. That’s down to the fund managers of your current pension scheme. They are not allowed to transfer a penny to any scheme that is not an authorised QROPS. If the scheme you want to join is not on the list, then your current pension provider has to get a letter from the QROPS fund manager of the scheme they are transferring to giving permission for HMRC to confirm the provider has told HMRC that their scheme meets all QROPS provisions. For transfers from multiple schemes, each current fund manager has to do this. If they transfer your money without this confirmation and the scheme is not a QROPS, then the transferring fund manager is in breach of the QROPS rules and that can lead to sanctions against his firm and an authorised withdrawal charge penalty against you. None of the providers on the list are approved or recommended in any way by HMRC HMRC regulates QROPS schemes but will not give advice, hints or tips about investments. QROPS are ‘buyer beware’ products. Investors and their advisors are expected to make all appropriate due diligence inquiries before committing themselves to any contract. Providers notify HMRC that their schemes meet all the requirements of a QROPS scheme but HMRC does not verify the notification. Watch out for any financial advisor or provider selling ‘HMRC approved’ schemes because there is no such thing. The transfer could also give rise to a scheme sanction charge on the scheme and to an unauthorised payments surcharge on the member. This is why you should look for QROPS advice from a UK regulated independent financial advisor with experience in offshore pensions. The advisor should also have no ‘ties’ or affiliations with a limited number of QROPS firms – best advice comes from an advisor who can shop round the ‘whole of the market’ for a tailored scheme that suits your needs. What is an unauthorised payments surcharge? An authorised payment is when money is paid out of a pension scheme in a way that breaks the rules. Examples are paying money in to account that is not a QROPS scheme, paying more than the allowed tax-free lump sum or paying benefits to a pension scheme member before they have reached retirement age. An unauthorised withdrawal charge can also be applied if money is transferred to a QROPS then transferred on to a non-QROPS scheme. The potential penalty is 40% tax on the unauthorised withdrawal plus a 15% surcharge penalty.
Archive for September, 2008
Qrops, Don’t Ignore the Taxman’s Wealth Warning
Wednesday, September 24th, 2008Getting Same Day Pay Day Loans UK
Tuesday, September 23rd, 2008
In the age of rapid decision makings, the technology has allowed people to get same day pay day loans online through the Internet. Many payday loan lenders in the UK today provide electronic facility to allow borrowers to submit their application form and process it in the same day. This is a real advantage as no one wants to wait for days when they have a financial emergency to be tackled.
Unlike traditional loans, payday loans are planned and structured to help people in urgent need of cash to get money quickly without much paperwork to be furnished. Although the industry is fairly new in the UK, the fact is it is getting more and more popular as it offers online facility that cuts off the need to go to a local loan shop and the hassle of waiting in a line. With simple application and no credit check required, it is possible to get the money in your hands within the same day.
Easy Money in 24 Hours
Payday loans, also called cash advances, offer short-term loans between two and four weeks period with the amount involved from ?100 and ?1000 or more. You need no collateral to become illegible for the loans. The only form of security is your next pay. In fact, in the application form you must state your employer and the date you usually receive your salary.
Another important thing is that you must have an active bank account that allows direct deposits and authorized withdrawals. This is to enable the payday lender to wire the funds directly into your bank account once your application is approved. When the loan is due to be repaid, you must make sure that there are enough funds on your account so the lender can simply withdraw the repayment amount plus interest automatically.
Speedy Approval Process
Using online facility, most payday loan lenders are able to process your application in the same day or at least within 24 hour turnaround. A loan applied for, from Monday to Thursday gets cleared the same or next day, while those applied on Friday is delayed till next Monday. The delay is further increased to Tuesday in case of a loan applied on Saturday or Sunday. This speedy approval process is a real advantage compared to loans from banks which often take several days to get an approval.
Same day payday loans are drafted to cater your immediate cash requirements. They fully assimilate the fact that it is not always possible to go through a lengthy administration process and wait for days when the need for cash is just so urgent. The lenders in the UK operate online that make people’s life easier when it comes to applying for a small loan.
