Military Pension
Dec 10th 2006, 9:51 pm
#1
Forum Regular
Thread Starter
Joined: Apr 2006
Posts: 31
Military Pension
Hi people out there, I have a military pension from the RAF. Anyone know the best thing to do with it?, do I get it paid into my uk account and withdraw it as and when I need it, or do I invest it in the NZ banking system. I just want to get the best value for money/ tax 
ed the least amount, any ideas will be most appreciated.
ed the least amount, any ideas will be most appreciated.
Dec 11th 2006, 3:30 am
#2
Forum Regular
Joined: Aug 2006
Location: Tauranga, Bay of Plenty
Posts: 117
Re: Military Pension
Originally Posted by robbish
Hi people out there, I have a military pension from the RAF. Anyone know the best thing to do with it?, do I get it paid into my uk account and withdraw it as and when I need it, or do I invest it in the NZ banking system. I just want to get the best value for money/ tax ed the least amount, any ideas will be most appreciated.
ed the least amount, any ideas will be most appreciated.Hi Robbish
I get a pension from my previous employer in UK. It is paid in to my UK bank account from choice as I am working in NZ and have a mortgage to pay in uk. There is a reciprocal agreement between UK and NZ so that you only have to pay income tax on pensions once. I have applied for this but not had it yet.
The process, I hope, is that you declare it in UK and NZ for income tax and then you fill out a form which the overseas resident department of the UK IR will give you. You then give this to thr NZ IR and they confirm that you have declared your UK pension in NZ and send it back to the UK IR people. Eventually they will issue your pension payer a coding notice that basically says that you do not have to pay any income tax on your pension in UK.
Other things to watch out for:
This ONLY applies to pensions. Any other UK income still has to be declared to both UK and NZ IR.
If you are under 65 then you can continue to pay your NI contribution while you are in NZ until you either retire or return to UK. That way you will get you UK state pension at 65. How much it costs to do this will depend on how long you have been working already in UK and therefore how much NI you have paid in the UK. I am 54 and been working for 37 years and paying full NI the whole time. My NI contribution per year to UK are now about 45 pounds. Worth it I reckon to make sure I get my UK state pension.
I hope this helps
Paul
Dec 11th 2006, 6:18 am
#3
Forum Regular
Thread Starter
Joined: Apr 2006
Posts: 31
Re: Military Pension
Originally Posted by PaulGent
Hi Robbish
I get a pension from my previous employer in UK. It is paid in to my UK bank account from choice as I am working in NZ and have a mortgage to pay in uk. There is a reciprocal agreement between UK and NZ so that you only have to pay income tax on pensions once. I have applied for this but not had it yet.
The process, I hope, is that you declare it in UK and NZ for income tax and then you fill out a form which the overseas resident department of the UK IR will give you. You then give this to thr NZ IR and they confirm that you have declared your UK pension in NZ and send it back to the UK IR people. Eventually they will issue your pension payer a coding notice that basically says that you do not have to pay any income tax on your pension in UK.
Other things to watch out for:
This ONLY applies to pensions. Any other UK income still has to be declared to both UK and NZ IR.
If you are under 65 then you can continue to pay your NI contribution while you are in NZ until you either retire or return to UK. That way you will get you UK state pension at 65. How much it costs to do this will depend on how long you have been working already in UK and therefore how much NI you have paid in the UK. I am 54 and been working for 37 years and paying full NI the whole time. My NI contribution per year to UK are now about 45 pounds. Worth it I reckon to make sure I get my UK state pension.
I hope this helps
Paul
I get a pension from my previous employer in UK. It is paid in to my UK bank account from choice as I am working in NZ and have a mortgage to pay in uk. There is a reciprocal agreement between UK and NZ so that you only have to pay income tax on pensions once. I have applied for this but not had it yet.
The process, I hope, is that you declare it in UK and NZ for income tax and then you fill out a form which the overseas resident department of the UK IR will give you. You then give this to thr NZ IR and they confirm that you have declared your UK pension in NZ and send it back to the UK IR people. Eventually they will issue your pension payer a coding notice that basically says that you do not have to pay any income tax on your pension in UK.
Other things to watch out for:
This ONLY applies to pensions. Any other UK income still has to be declared to both UK and NZ IR.
If you are under 65 then you can continue to pay your NI contribution while you are in NZ until you either retire or return to UK. That way you will get you UK state pension at 65. How much it costs to do this will depend on how long you have been working already in UK and therefore how much NI you have paid in the UK. I am 54 and been working for 37 years and paying full NI the whole time. My NI contribution per year to UK are now about 45 pounds. Worth it I reckon to make sure I get my UK state pension.
I hope this helps
Paul
