HMRC are now introducing an online registration process, in order both to streamline its function, as well as to comply with new anti-money-laundering legislation – called the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017 (Molatof, anyone?)
Trustees have an obligation to keep good records and accounts, not only for beneficiaries, but also for the Inland Revenue (HMRC).
Until recently, trustees did not have to supply details to the Inland Revenue of who was going to receive money from a trust – but this has changed.
Trustees have always been under an obligation to report income and gains, as well as reporting on the 10 year anniversary Inheritance Tax charge – if you are a trustee and you think you may not have failed to keep up to date, then your solicitor or accountant can help you keep on track, with a “trusts checkup”.
HMRC are now introducing an online registration process, in order both to streamline its function, as well as to comply with new anti-money-laundering legislation – called the Money Laundering Terrorist Financing and Transfer of Funds Regulations 2017 (Molatof, anyone?). HMRC issued a newsletter about the upcoming changes in April – and suggested that the system would be online this month. The Molatof regulations were published today, and it seems that it will be a few more weeks whilst HMRC tests the system to see whether it is working correctly.
The Molatof regulations mean that not only do trustees have to supply their details, but also they have to supply the names of beneficiaries and how they benefit – and in addition to their names, will also ask for National Insurance Numbers – and if a National Insurance Number is not available, addresses and passport details may be required.
HMRC have set themselves a deadline of the system going live by 5th October 2017 – for all trusts which have a tax consequence, information on the existence of the trust must be provided on or before 31 January 2018
New tax proposed for the middle-aged middle-class – Nunn Hayward, UK.
Deep joy. I don’t deny that there are deep problems with the way things are done now – I have never met a client who wants to go into a nursing home – and I fully understand that the vulnerable person neither wants to be separated from their home and their nest, where they have lived for most of their happiest years, despite impairments. And the self interest of many children in the family, as they see their inheritance being eroded is also strong.
But how is it expected that pensioners will pay national insurance? I’m fairly sure that the proportion of higher income pensioners is small, compared to most, who will experience a loss in income as opposed to a salaried income. And if you deduct national insurance from those who are already streamlining their budget for retirement – well, there will be some hardship.
I know that not all pensioners are poor – those retiring now might be the last of the salary-scheme pensioners, and that now, the generation might be able to afford to pay NI, if their pension gives them an income of over £20,000 a year, between them. But even if this is achievable with the current pensioners, by the time such a policy is put in place (say 5 years time, at least), this might not be the case – the pensioner population might soon start to show people who were not on final salary schemes as a larger proportion of the whole.
And I suspect there is a huge gap to be bridged between even those pensioners and the generation retiring in 15-20 years time, who may have very little, if any supplementary pension, given the proportionate increase in expenditure on housing costs and childcare that generation has experienced.