OMW adds feature to settle annual allowance breaches

OMW said that, with the new feature, clients will be able to use their personal pensions to pay their annual allowance tax charge. It will also allow them to settle annual allowance tax charges for any pension scheme.

The feature was developed in collaboration with Quilter's national advice business and will be available to clients of all financial advisers. Once the new feature has been activated by a client, the CRA will pay HM Revenue & Customs as soon as possible.

The feature was brought in following issues surrounding the tapered annual allowance. On Friday (10 January), the British Medical Association revealed the government planned to review the controversial tax charge, the results of which would be revealed in the 11 March Budget. 

Quilter pensions expert Ian Browne said: "Providers need to come to the fore with innovative solutions that make it easier to pay for tax charge many are unaware they have triggered.

"This new feature will help remove the stress of paying any annual allowance tax charges, as well as minimise the risk of incurring penalties for late payment. This is also a simple and easy to use service, which only requires the information you already need for a self-assessment. As a result we think this will give clients and their advisers a wide range of options when it comes to giving pension advice and planning."

The addition of the tool comes as the company prepares to finish its £500m re-platforming move. Last November OMW head of proposition marketing Jeremy Mugridge said the team were "not scared" as it prepares to re-platform from one technology to another. Mugridge told Professional Adviser that, if they were not prepared for the migration and had not learnt lessons from other firms who have re-platformed, then he probably would be cautious.

In terms of Quilter's move, a date for the migration has purposefully not yet been set. Mugridge has seen the trouble that setting a date has caused for previous people. 

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