Claim UK State pension in Canada
#17
Re: Claim UK State pension in Canada
One thing I'm not clear on but must be common enough, I can't find anything on CRA or other googling about backpay of UK Pension.
For example, mine was due 2023 and they had plenty of time to have done it by now. I was rather hoping I'd have received the back pay so I could just attribute it appropriately for the part of 2023 it was due for.
But for whatever reason they've been slow and it's not done.
I would still be hopeful it gets done by the tax return deadline and do the same - if allowed - but if it's not done until after that and there's no pension received (yet) to report do I then do a "correction" or whatever it's called when I do get it or does the back pay, along with the regular payment then get reported for the tax year 2024?
Perhaps it makes little difference overall (double tax issues aside) but that inflated income for 2024 would likely wipe out the GIS part of my Canadian income and that has some implications for my Senior's Prescription coverage.
Anyone had the same or can point me in the right direction?
For example, mine was due 2023 and they had plenty of time to have done it by now. I was rather hoping I'd have received the back pay so I could just attribute it appropriately for the part of 2023 it was due for.
But for whatever reason they've been slow and it's not done.
I would still be hopeful it gets done by the tax return deadline and do the same - if allowed - but if it's not done until after that and there's no pension received (yet) to report do I then do a "correction" or whatever it's called when I do get it or does the back pay, along with the regular payment then get reported for the tax year 2024?
Perhaps it makes little difference overall (double tax issues aside) but that inflated income for 2024 would likely wipe out the GIS part of my Canadian income and that has some implications for my Senior's Prescription coverage.
Anyone had the same or can point me in the right direction?
#18
Forum Regular
Joined: May 2021
Location: Stony Plain, AB
Posts: 102
Re: Claim UK State pension in Canada
One thing I'm not clear on but must be common enough, I can't find anything on CRA or other googling about backpay of UK Pension.
For example, mine was due 2023 and they had plenty of time to have done it by now. I was rather hoping I'd have received the back pay so I could just attribute it appropriately for the part of 2023 it was due for.
But for whatever reason they've been slow and it's not done.
I would still be hopeful it gets done by the tax return deadline and do the same - if allowed - but if it's not done until after that and there's no pension received (yet) to report do I then do a "correction" or whatever it's called when I do get it or does the back pay, along with the regular payment then get reported for the tax year 2024?
Perhaps it makes little difference overall (double tax issues aside) but that inflated income for 2024 would likely wipe out the GIS part of my Canadian income and that has some implications for my Senior's Prescription coverage.
Anyone had the same or can point me in the right direction?
For example, mine was due 2023 and they had plenty of time to have done it by now. I was rather hoping I'd have received the back pay so I could just attribute it appropriately for the part of 2023 it was due for.
But for whatever reason they've been slow and it's not done.
I would still be hopeful it gets done by the tax return deadline and do the same - if allowed - but if it's not done until after that and there's no pension received (yet) to report do I then do a "correction" or whatever it's called when I do get it or does the back pay, along with the regular payment then get reported for the tax year 2024?
Perhaps it makes little difference overall (double tax issues aside) but that inflated income for 2024 would likely wipe out the GIS part of my Canadian income and that has some implications for my Senior's Prescription coverage.
Anyone had the same or can point me in the right direction?
The UK state pension will be back dated to when you first became eligible but for CRA purposes it does not count as back pay. It is simply counted as pension income in the year it is ACTUALLY received. My birthday is in February but it was January of the following year after my 65th bday that I received my 'back pay' but it was not reported to CRA until the next tax year - around 2 years after I reached state pension age.
#19
Re: Claim UK State pension in Canada
Hey Bristol, Happy New Year.
The UK state pension will be back dated to when you first became eligible but for CRA purposes it does not count as back pay. It is simply counted as pension income in the year it is ACTUALLY received. My birthday is in February but it was January of the following year after my 65th bday that I received my 'back pay' but it was not reported to CRA until the next tax year - around 2 years after I reached state pension age.
The UK state pension will be back dated to when you first became eligible but for CRA purposes it does not count as back pay. It is simply counted as pension income in the year it is ACTUALLY received. My birthday is in February but it was January of the following year after my 65th bday that I received my 'back pay' but it was not reported to CRA until the next tax year - around 2 years after I reached state pension age.
In this province - maybe others too - GIS (just the existence, no matter how much) is a passport to Seniors drug coverage which is a mere $5 per drug (I have 10). By my calculations had my state pension been processed timeously I'd be keeping GIS and, thus, Seniors drug coverage.
If I lose GIS I might end up having to pay in excess of $100 monthly premiums and $20 per prescription.
Just because they're late and the same amount of money is paid in one year instead of when it would have been but for the lateness. I could be worse off by a couple of thousand $$
#21
#22
limey party pooper
Joined: Jul 2012
Posts: 9,982
#23
Re: Claim UK State pension in Canada
I found calling surprisingly easy and I was not on hold for long. But I know what you mean: I usually have to spend several days working up to it.
#25
limey party pooper
Joined: Jul 2012
Posts: 9,982
Re: Claim UK State pension in Canada
#26
Re: Claim UK State pension in Canada
Repaying seems a bit odd given the July adjustments based on the prior tax year's income. That's a double penalty isn't it? Repaying what you had and not getting future payments?
My MIL cashed in an RRSP or whatever it was and that amount stopped her GIS the following July for one year but there was no repayment. She lost her Seniors drug coverage for a year and I saw the difference that made.
Fortunately there have been some improvements in NB since then but the difference in the Seniors costs and the improved system for everyone else can still be a big one and it would be for me.
#27
BE Forum Addict
Joined: Jan 2008
Location: Near Kingston, Ontario
Posts: 1,318
Re: Claim UK State pension in Canada
#30
Re: Claim UK State pension in Canada
I had several goes at it on different mornings...endless repeated recorded messages about being connected (not) ASAP. .
Today I tried half an hour before their going home time and got straight through.
Only to be told by a lovely Geordie accent with profuse apologies that he couldn't see any reason why it hadn't been done. Just sitting there.
So I might get a call back. Probably just after I've left the house.