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work pension tax

work pension tax

Old May 26th 2019, 12:59 pm
  #1  
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hi, I have a work pension which I pay UK tax on. I understand that it is tax free as a resident in Hungary. Does anyone know how I do this? Will be arriving in Hungary in June.
Thanks
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Old May 26th 2019, 4:30 pm
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Default Re: work pension tax

Originally Posted by johneuro View Post
hi, I have a work pension which I pay UK tax on. I understand that it is tax free as a resident in Hungary. Does anyone know how I do this? Will be arriving in Hungary in June.
Thanks
Once you are resident in Hungary for tax purposes i.e you need your residency, you inform your pension provider that your pension should be paid gross (without tax deducted) as you are now resident in Hungary.
By the way if you have rental property in the UK there are provisions for this also (it will still come under UK tax), if you need to know this ask.

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Old May 26th 2019, 4:45 pm
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Default Re: work pension tax

thanks Peter. I have lived on Hungary before. Just would like to avoid HU UK tax forms translations etc. Hopefully my provider will do that without Revenue permission.
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Old May 26th 2019, 5:08 pm
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Default Re: work pension tax

Are you sure about that Peter? I have 2 work related pensions, both subject to UK taxes because they are UK based (& I couldn't move them).
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Old May 26th 2019, 5:16 pm
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Default Re: work pension tax

My understanding is that if the pensions are from the public sector then you have to pay uk tax on them...
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Old May 26th 2019, 5:19 pm
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Default Re: work pension tax

Originally Posted by cathyg View Post
My understanding is that if the pensions are from the public sector then you have to pay uk tax on them...
Yes, of course, one of mine is public sector. I think I always knew that, I just got over excited! I think I also misinterpreted Peter's answer!


Last edited by Expatrick; May 26th 2019 at 5:22 pm.
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Old May 26th 2019, 7:16 pm
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Default Re: work pension tax

Sorry for the confusion I assumed that johneuro's pension was a private sector pension. - Both Cathyg and Expatrick are correct, public sector pensions are taxed in the UK, private sector pensions are taxed in the country of residence. Property is taxed in the country where the property is located. But for UK income you get the UK personal tax allowance for both public sector pensions and property rental income. Oh and the UK state OAP is not taxed in the UK but falls under Hungarian rules which places it outside of taxable income.
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Old May 26th 2019, 7:57 pm
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Default Re: work pension tax

Thanks Peter!
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Old Jan 21st 2020, 6:03 pm
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Default Re: work pension tax

Thank You, very useful!
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Old Jan 21st 2020, 7:30 pm
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Default Re: work pension tax

Originally Posted by Peter_in_Hungary View Post
Once you are resident in Hungary for tax purposes i.e you need your residency, you inform your pension provider that your pension should be paid gross (without tax deducted) as you are now resident in Hungary.
By the way if you have rental property in the UK there are provisions for this also (it will still come under UK tax), if you need to know this ask.
My wife and I are both retired, resident in Hungary and receiving UK pensions. As such do we have to register with the Hungarian tax authorities? Regarding Peter_in_Hungary's comment above I was under the impression that HMRC decided whether pensions were subject to tax rather than the pension provider. Any clarification on these two points would be greatly appreciated.

Thank you,

Dicky









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Old Jan 21st 2020, 8:55 pm
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Default Re: work pension tax

According to a bilateral agreement - UK and Hungary - pensions are taxed in the country in which they are received and not in the country from where the pensions originate. This applies to both the UK OAP and any private and or work related pension. An exception to this is work related pensions that stem from state employment (e.g. civil service pension, teachers pension, local authority pension etc.) which are taxed in the UK but if you fall into this category I believe you get the personal allowance to set against such a pension as you do with any other UK income taxable in the UK e.g.rent income So pensions received here come under Hungarys rules which currently excludes pensions from tax. Even if Hungary later decided to tax pensions you should still receive your pensions gross (subject to exceptions above) and pay any tax here.

The bilateral agreement pre-dates Hungarys joining the EU and will survive Brexit. - so I an told.

If your pension provider has been deducting tax you will need to reclaim any deductions back from HMRC and tell your provider to pay the pension gross.

I'M afraid that I don't know if as a resident pensioner you are required to register with the tax authorities, but it is the tax authority that will issue a document that you are resident in Hungary for tax purposes which your pension provider may need before they pay pension gross - or they may accept your residency documentation.
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Old Jan 21st 2020, 9:20 pm
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Default Re: work pension tax

Even as a pensioner, regardless, I believe you should still register with the NAV.
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Old Jan 21st 2020, 9:37 pm
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Default Re: work pension tax

Thank you very much Peter_in_Hungary. Sage advice as always. I will contact HMRC in the first instance. Thank you for taking the time to reply.
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