Entrepreneur Ivan Massow, fresh from launching his new venture which aims to refund 'unearned' trail commission to retail customers, said he is confident the process does not fall foul of HMRC tax rules where it involves pension plans.
Advisers said refunding commission to clients from a pension plan would likely be treated as an 'unauthorised payment' by the UK's customs and tax department, resulting in a minimum 40%, and possible 55%, tax charge. But Massow said as no 'new' commission is being generated and the rebate is purely a 'commercial arrangement', he has confirmation that the rules do not apply. His new business - paymemy.com - launched yesterday. It allows clients who discover they are paying renewal commission but receiving nothing in return to apply to get 80% of any future payments rebated to them. ...
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