Best time of year to move back for HMRC
#1
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Best time of year to move back for HMRC
Perhaps another retired ex-pat who has moved back to the UK with only pension income has faced my situation.
I'm wondering how long after moving back to the UK with only pension income (UK and Canada) a person should wait before contacting HMRC and announcing their return? Does the person wait for a year or so to go by so that HMRC can see that their residence has been primarily in the UK over the preceding year? Or should a person tell them within a few months of moving back to put HMRC on notice of the situation? If a person was returning to a job in the UK, HMRC would find out quickly via tax deductions by the UK employer. But with pensions that doesn't happen. I am presently classed as 'non-resident' by HMRC while a resident of Canada so no tax is being withheld on pension payments from a UK SIPP.
The Canadian tax form is filed by everyone in Canada at the start of each calendar year and has a place to enter a date for entering Canada or leaving Canada so it's relatively clear cut how you report to the Canadian tax people as to whether you have started/stopped being a resident of Canada. But as far as HMRC it seems vague as to when a retired ex-pat should tell them of resuming residence in the UK. I couldn't find anything on the HMRC website.
Has any other ex-pat gone through a similar situation? If so, I wonder how they handled it in regard to contacting HMRC.
I wonder if the UK tax year (April 6 to April 5) is relevant on when to contact HMRC? Maybe just after April 6 would be a good time?
I'd also be interested in whether anyone would have any thoughts as to whether there is a best time of year in regard tax and HMRC to move back to the UK -- given that a person has the choice of when to move back, i.e. no new job involved. Perhaps in April, given the UK tax year?
Thanks for any feedback!
I'm wondering how long after moving back to the UK with only pension income (UK and Canada) a person should wait before contacting HMRC and announcing their return? Does the person wait for a year or so to go by so that HMRC can see that their residence has been primarily in the UK over the preceding year? Or should a person tell them within a few months of moving back to put HMRC on notice of the situation? If a person was returning to a job in the UK, HMRC would find out quickly via tax deductions by the UK employer. But with pensions that doesn't happen. I am presently classed as 'non-resident' by HMRC while a resident of Canada so no tax is being withheld on pension payments from a UK SIPP.
The Canadian tax form is filed by everyone in Canada at the start of each calendar year and has a place to enter a date for entering Canada or leaving Canada so it's relatively clear cut how you report to the Canadian tax people as to whether you have started/stopped being a resident of Canada. But as far as HMRC it seems vague as to when a retired ex-pat should tell them of resuming residence in the UK. I couldn't find anything on the HMRC website.
Has any other ex-pat gone through a similar situation? If so, I wonder how they handled it in regard to contacting HMRC.
I wonder if the UK tax year (April 6 to April 5) is relevant on when to contact HMRC? Maybe just after April 6 would be a good time?
I'd also be interested in whether anyone would have any thoughts as to whether there is a best time of year in regard tax and HMRC to move back to the UK -- given that a person has the choice of when to move back, i.e. no new job involved. Perhaps in April, given the UK tax year?
Thanks for any feedback!
Last edited by Phil Jones; Mar 11th 2015 at 10:15 pm. Reason: adding
#2
Re: Best time of year to move back for HMRC
I'd also be interested in whether anyone would have any thoughts as to whether there is a best time of year in regard tax and HMRC to move back to the UK -- given that a person has the choice of when to move back, i.e. no new job involved. Perhaps in April, given the UK tax year?
Thanks for any feedback!
Just that the UK tax year is April 5 & as you know 'world income declaration' for Canada & the UK.
https://www.gov.uk/personal-tax/self-assessment
If you are cutting ties with Canada as far as 'non resident' just fill in the declaration paperwork, otherwise (I believe) you'll forever have to continue to file a Canadian tax return
T4058 - Non-Residents and Income Tax - 2014
Non-residents of Canada
As far as contacting the UK pension folks in the UK, do that prior to leaving Canada & immediately on your arrival to give them your UK address. Hopefully you will get a boost in your state pension that was not indexed in Canada
https://www.gov.uk/international-pension-centre
Last edited by not2old; Mar 11th 2015 at 11:27 pm.
#3
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Re: Best time of year to move back for HMRC
Thanks, not2old. So much paperwork involved in moving between countries, particularly in regard the tax people! A person doesn't want to do it too often! Thanks again.
#4
Re: Best time of year to move back for HMRC
If you have taxable income taxable in the UK move back such that your income before the end of the tax year is about the same as your annual tax allowance. So if your income per month is approximately one third of your annual tax allowance then look to return to the UK about three months before the end of the tax year (i.e. early January), thereby getting three months of tax free income.
#5
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Re: Best time of year to move back for HMRC
Thanks, Pulaski. That's helpful. It would tie in with the Canadian tax as well since Canada uses the calendar year for taxation. So if one put on the Canadian tax form that he had left Canada on 31 December (or a slightly earlier date), he wouldn't need to file a tax form for the next year (assuming Canada accepted the stated departure date -- as they did the last time I left). And then you also get the UK tax benefit that you mentioned.