Just reading something elsewhere about the situation whereby the UK state pension is frozen at the rate when you left the country. This I know and I've got another 10 yrs until state pension but one thing just sprang to mind.
Surely this can only apply if you get permanent residence abroad. Otherwise you could just be on long holidays as long as you keep an address, bank account, Gp etc in the UK.
Or am I bieng naive ?
UK State Pension
UK State Pension
if you are an expat, it depends on the country that you live in. if Thailand then your state pension is frozen at the rate when you receive your pension (65) not at the rate when you left the U.K.
if you make out that you are still a U.k. resident then you will not be able to claim the tax that has been deducted when they pay the pension. if you live here then just complete a U.K. tax return once a year. providing your u.k. earnings do not exceed your personal allownce, something like £5,100 pounds a year, the tax paid will be returned to you.
mike
if you make out that you are still a U.k. resident then you will not be able to claim the tax that has been deducted when they pay the pension. if you live here then just complete a U.K. tax return once a year. providing your u.k. earnings do not exceed your personal allownce, something like £5,100 pounds a year, the tax paid will be returned to you.
mike
UK State Pension
something i forgot to say. from 2010 the number of years payments to qualify for a full state pension will reduce from 44 to 30 years. if you are in the U.k. and working this will make no difference to you. however if you are an expat and you are say 55 and have 30 or more years of full payments then stop your payments now. you will get 100% pension at 65.
mike
mike
miked I believe you are incorrect on getting tax back on any pension that arises in the UK 
For the first 2 years heare i paid no tax then i was forced to pay it ever since
if you would be so kind as to inform me of how i go about it give a link or somewhere i can research this i would be grateful but as far as i am aware all income from the UK is taxable
7 years of tax back would make my life exceedingly comfortable
Oh and when i enquired a year ago about my soon to be wife recieving my pension AFTER my death i was told she will pay tax as the pension arises in the UK and she has never left thailand let alone placed a little pinky on english soil
For the first 2 years heare i paid no tax then i was forced to pay it ever since
if you would be so kind as to inform me of how i go about it give a link or somewhere i can research this i would be grateful but as far as i am aware all income from the UK is taxable
7 years of tax back would make my life exceedingly comfortable
Oh and when i enquired a year ago about my soon to be wife recieving my pension AFTER my death i was told she will pay tax as the pension arises in the UK and she has never left thailand let alone placed a little pinky on english soil
A Greatfull Guest of Thailand
UK State Pension
your personal tax allowance for the tax year 2007/8 is £5225 rising to £5435 for 2008/9.
lets take for examle 2007/8.
your state pension will be paid with tax deducted at 20%. the state pension is about £4,500. that means that £900 will be deducted in tax before you get it. but your tax allowance is £5225 so in fact you could earn another £725 before you are liable to pay tax. of course you can only claim for tax paid up to earnings of £5225. tax paid on earnings above this figure will of course not be able to reclaim.
if you complete a U.K. tax return and submit before 31st january your rebate will be credited in due course.
if you decide to complete a U.K. tax return then be sure to include all your earnings including interest from offshore bank accounts. the interest from offshore banks is not liable for U.K. tax providing that you spend no more than 90 days in the u.k. in anyone tax year. be aware that all offshore bank accounts are now checked on by the revenue. if you are an expat and submit a tax return and do not include your offshore earnings then you are liable to receive a penalty.
as regards back years i am fairly sure that you cannot reclaim the tax for those years.
mike
lets take for examle 2007/8.
your state pension will be paid with tax deducted at 20%. the state pension is about £4,500. that means that £900 will be deducted in tax before you get it. but your tax allowance is £5225 so in fact you could earn another £725 before you are liable to pay tax. of course you can only claim for tax paid up to earnings of £5225. tax paid on earnings above this figure will of course not be able to reclaim.
if you complete a U.K. tax return and submit before 31st january your rebate will be credited in due course.
if you decide to complete a U.K. tax return then be sure to include all your earnings including interest from offshore bank accounts. the interest from offshore banks is not liable for U.K. tax providing that you spend no more than 90 days in the u.k. in anyone tax year. be aware that all offshore bank accounts are now checked on by the revenue. if you are an expat and submit a tax return and do not include your offshore earnings then you are liable to receive a penalty.
as regards back years i am fairly sure that you cannot reclaim the tax for those years.
mike
Re: UK State Pension
Thats rather concerning ... I thought one of the major advantages to offshore banks was that they were "offshore" and IR can't go snooping around in there.miked wrote:be aware that all offshore bank accounts are now checked on by the revenue. if you are an expat and submit a tax return and do not include your offshore earnings then you are liable to receive a penalty.
Not sure I need to worry though as I haven't been to the UK for 8 years.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
UK State Pension
if you complete a U.K. tax return then your tax authority is the U.K and as such you have a tax allowance of £5225 for the year 2007/8. U.K. earnings below this amount are not subject to tax and can be reclaimed if paid.
if you don't complete a tax return then the tax cannot be reclaimed.
mike
if you don't complete a tax return then the tax cannot be reclaimed.
mike
UK State Pension
regarding offshore banks be it retention or withholding tax all details are now given to the revenue. in 2005 the revenue had a court ruling in there favor and as such have the same powers to examine offshore banks as if it was a U.K. bank.
if you are an expat and not subject to U.K. tax its of no concern to you.
if you are an expat and not subject to U.K. tax its of no concern to you.
Re: UK State Pension
[quote="buksidaI thought one of the major advantages to offshore banks was that they were "offshore" and IR can't go snooping around in there.
They recently changed the rules for Isle of Man and the Channel Islands under some European directive and agreement. All interest in these offshore accounts is taxable if you are declared resident in an EU country at the appropriate rate. This is to stop EU residents ferreting their ill gotten gains offshore without governments knowing about it. I got hit for tax in July this year on my Jersey HSBC account as they had my residence recorded as UK, once I explained that I had not been resident for 10 years and now lived in Thailand they refunded the tax within a couple of weeks.
They recently changed the rules for Isle of Man and the Channel Islands under some European directive and agreement. All interest in these offshore accounts is taxable if you are declared resident in an EU country at the appropriate rate. This is to stop EU residents ferreting their ill gotten gains offshore without governments knowing about it. I got hit for tax in July this year on my Jersey HSBC account as they had my residence recorded as UK, once I explained that I had not been resident for 10 years and now lived in Thailand they refunded the tax within a couple of weeks.
I thought that both individuals and the revenue could go back 7 years for any claims for excess or shortfall of tax payments.miked wrote:as regards back years i am fairly sure that you cannot reclaim the tax for those years.
mike
"Sometimes I sits and thinks, and then again I just sits" Punch 24th Oct 1906
Re: UK State Pension
Same account as I have, if thats the case my residence is recorded as Thailand so they'll leave me alone .... hopefully !Condoking wrote:I got hit for tax in July this year on my Jersey HSBC account as they had my residence recorded as UK, once I explained that I had not been resident for 10 years and now lived in Thailand they refunded the tax within a couple of weeks.
Sorry for taking this one off topic!
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
UK State Pension
the revenue have the power on offshore bank accounts to go back 20 years. but what they are looking for is U.K. residents who are avoiding paying tax. if you are not resident in the U.K. you have nil tax to pay. nothing to worry about.
if however you complete a tax return do include any offshore earnings because they will find out about it.
mike
if however you complete a tax return do include any offshore earnings because they will find out about it.
mike
UK State Pension
all eec countries have signed up for the european tax directive 2005, together with the cayman islands, burmuda and lots of others. its all done to prevent money laundering.
india singapore and australia are the main offshore banks that have not signed the directive, although india has agreed to.
do a search for the eec tax directive 2005. its quite invoved but as i said before if you are not a resident in your own country and are outside of the directive area it does not cause you any concern.
mike
india singapore and australia are the main offshore banks that have not signed the directive, although india has agreed to.
do a search for the eec tax directive 2005. its quite invoved but as i said before if you are not a resident in your own country and are outside of the directive area it does not cause you any concern.
mike
Miked wrote :if you are an expat, it depends on the country that you live in. if Thailand then your state pension is frozen at the rate when you receive your pension (65) not at the rate when you left the U.K.
Mike, anyone claiming a state pension after 2010 will only need 30 years worth of payments as you have said,however, the age you claim your pension is rising to 66 and I believe 67 later.
I was born in 1960 and now will not be able to claim state pension until I am 66.
Also as for claiming tax back on your state pension because of your tax free allowance, they may have used their allowance on a company pension if they have one. The tax free allowance is on total income, not claimable for each pension.
Mike, anyone claiming a state pension after 2010 will only need 30 years worth of payments as you have said,however, the age you claim your pension is rising to 66 and I believe 67 later.
I was born in 1960 and now will not be able to claim state pension until I am 66.
Also as for claiming tax back on your state pension because of your tax free allowance, they may have used their allowance on a company pension if they have one. The tax free allowance is on total income, not claimable for each pension.
'If you didn't have a wasted youth you wasted your youth'
Man in pub circa 1987.
Man in pub circa 1987.