Re: Hello HMRC ... anyone there?
Don't forget that part of the US SS is essentially 'tax tree' in the UK as they only tax 90% of the benefit.
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Re: Hello HMRC ... anyone there?
Originally Posted by Vadio
(Post 11723526)
Don't forget that part of the US SS is essentially 'tax tree' in the UK as they only tax 90% of the benefit.
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Re: Hello HMRC ... anyone there?
Originally Posted by Vadio
(Post 11723526)
Don't forget that part of the US SS is essentially 'tax tree' in the UK as they only tax 90% of the benefit.
For those questioning whether the 10% reduction really exists: go to the following GOV.UK page and download the Foreign Notes (2015). In the PDF which opens, go to page FN 7. You will find the following: Overseas pensions, social security benefits and royalties, etc. Fill in columns A to F if you received a pension or social security benefits from overseas during 2014–15. (Bold Mine) and 10% deduction You can take 10% off the value of overseas pensions, annuities and social security pensions so that only 90% of the amount you receive is taxable in the UK. (Bold Mine) https://www.gov.uk/government/public...-foreign-sa106 https://www.gov.uk/government/upload...notes-2015.pdf If filing on paper, Column B is the gross amount and Column F is the 90% taxable amount. I believe Vadio indicated on the on-line filing, only the 90% taxable is included. Vadio to confirm. And from HMRC directly: Section 575 (as amended by IT(TOI)A 2005) provides that the taxable amount of a foreign pension is 90% of the actual amount arising in the tax year unless the income is charged in accordance with Section 832 of IT(TOI)A (relevant foreign income charged on the remittance basis). http://www.hmrc.gov.uk/manuals/eimanual/eim74500.htm |
Re: Hello HMRC ... anyone there?
I've done my UK SA on-line for the past 2 years. Each time I initially put in 100% of my SS benefit, to test whether the taxable amount was adjusted to reflect the 10% reduction. The UK tax due was calculated based on the exact amount I put on the form. Went back, reduced the SS amount to 90%, and Eureka...the tax agreed with the calculations on my Excel spreadsheet.
Same with hubby's UK SA; did it both ways, and concluded that I needed to put in the (lower) taxable amount, not the total actually received. Interesting question re: total benefit or benefit less Medicare B premiums. Neither of us signed up for Medicare B, so I never gave that much thought. One thing is for sure....if you call HMRC, they (likely) won't have a clue. |
Re: Hello HMRC ... anyone there?
Originally Posted by Vadio
(Post 11723719)
I've done my UK SA on-line for the past 2 years. Each time I initially put in 100% of my SS benefit, to test whether the taxable amount was adjusted to reflect the 10% reduction. The UK tax due was calculated based on the exact amount I put on the form. Went back, reduced the SS amount to 90%, and Eureka...the tax agreed with the calculations on my Excel spreadsheet.
Same with hubby's UK SA; did it both ways, and concluded that I needed to put in the (lower) taxable amount, not the total actually received. Interesting question re: total benefit or benefit less Medicare B premiums. Neither of us signed up for Medicare B, so I never gave that much thought. One thing is for sure....if you call HMRC, they (likely) won't have a clue. |
Re: Hello HMRC ... anyone there?
I really really need to educate myself on pensions/ss etc before I move back.. didn't know UK even taxed social security. anyway.
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Re: Hello HMRC ... anyone there?
Originally Posted by fulwood
(Post 11724059)
I really really need to educate myself on pensions/ss etc before I move back.. didn't know UK even taxed social security. anyway.
It's the tax issues that I need to understand. I have a U.S. accountant but I understand what Nun is saying in her comments to my inquiry above and am now wondering if I will also need a UK accountant who deals with dual citizens. I really hate to think what they will charge, though. It's been about 30 years or more since I prepared my own tax returns in the U.S. and combined with UK returns, I think I might lose my mind. :ohmy: |
Re: Hello HMRC ... anyone there?
Yes the whole taxes issue makes you feel like you're losing your mind, but I can't thank the members who share information enough for helping to ease my mind and steer me in the right direction.
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Re: Hello HMRC ... anyone there?
Originally Posted by Janelle
(Post 11724263)
Yes the whole taxes issue makes you feel like you're losing your mind, but I can't thank the members who share information enough for helping to ease my mind and steer me in the right direction.
We move back next year and I find these threads invaluable. |
Re: Hello HMRC ... anyone there?
Originally Posted by windsong
(Post 11724093)
Me, too.
It's the tax issues that I need to understand. I have a U.S. accountant but I understand what Nun is saying in her comments to my inquiry above and am now wondering if I will also need a UK accountant who deals with dual citizens. I really hate to think what they will charge, though. It's been about 30 years or more since I prepared my own tax returns in the U.S. and combined with UK returns, I think I might lose my mind. :ohmy: I feel UK practice will be a learning curve for me, and one phone call to HMRC will be enough to last me a very long time. Agreed, many thanks to those who've posted in this thread and other threads, with good insights and information. |
Re: Hello HMRC ... anyone there?
Originally Posted by robin1234
(Post 11724319)
Agreed, many thanks to those who've posted in this thread and other threads, with good insights and information. And just like real life, it's always good to say thanks to those who help.;) |
Re: Hello HMRC ... anyone there?
IMHO, most accountants err on the side of caution - and if they aren't sure, they play it safe. After all, you are paying the tax, not them.
It is a minefield, but even in the first year, it's more a tolerance for paperwork than anything else unless your situation is very complicated. Hiring a dual-qualified accountant could cost more than paying tax to 2 countries, and ignoring treaty benefits altogether. I tend to avoid accountants also. The only one who ever gave me good advice was a personal friend....who said "we charge a minimum fee to prepare a return; yours is simple - do it yourself." |
Re: Hello HMRC ... anyone there?
I miss JAJ.
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Re: Hello HMRC ... anyone there?
Originally Posted by theOAP
(Post 11724503)
I miss JAJ.
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Re: Hello HMRC ... anyone there?
Originally Posted by nun
(Post 11724554)
Where has he/she gone?
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