UK Sate Pension

Old Feb 12th 2016, 11:47 pm
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Default UK Sate Pension

Moving to NZ end April, my UK state pension is due to start 1st May, when should I inform the UK Pension Dept to make sure I get it in my Westpac account on 1st May? Also my wife already receives hers, so same question really.

Thanks.
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Old Feb 14th 2016, 7:16 am
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Default Re: UK Sate Pension

think you would be best speaking to a professional regarding this. the exchange rate is fairly good at the moment so that will have to be factored in but also possibly the 4 year waiver timeline?
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Old Feb 14th 2016, 3:20 pm
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Default Re: UK Sate Pension

Thanks, what is the 4 year waiver all about?
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Old Feb 14th 2016, 6:01 pm
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Default Re: UK Sate Pension

its quite complicated and not sure if it applies to you but think it might.

you have 4 years grace on paying tax on monies bought over from the UK when you first enter.

as I say all quite complicated and I believe there has been some changes so you really do need to speak to a qualified pension consultant who will be up on all the new changes and tax implications, which obviously will be personal to your own particular situation.
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Old Feb 14th 2016, 6:53 pm
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Default Re: UK Sate Pension

Originally Posted by Davidje View Post
Moving to NZ end April, my UK state pension is due to start 1st May, when should I inform the UK Pension Dept to make sure I get it in my Westpac account on 1st May? Also my wife already receives hers, so same question really.

Thanks.
Please see link below -

https://www.gov.uk/international-pension-centre
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Old Feb 14th 2016, 7:26 pm
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Default Re: UK Sate Pension

Originally Posted by Davidje View Post
Thanks, what is the 4 year waiver all about?
Normally in NZ you have to declare all global income, however migrants get a four-year grace period where you don't have to declare it (you may still have to pay tax in the country of origin). There are some exceptions to this though and it can affect your ability to obtain tax credits so I recommend you check into it if you have overseas income.
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Old Feb 14th 2016, 7:58 pm
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Default Re: UK Sate Pension

I set up an Offshore account on the IOM with Lloyds and my state pension is paid into that weekly. I have then set up a standing monthly transfer from Lloyds IOM to BNZ Chch. You will have to complete all appropriate forms with HM and IRD tax offices (NZ approves your living in NZ status and sends form to HMRC) you will then be exempt paying tax to the UK and NZ on that pension. You will still be hounded by HM tax man yearly to complete a self assessment form so you will have to fill in the appropriate forms every year.
This in reply to your question about a simple state pension and does not take into account any other incomes such as UK property rental income. The forms are quite easy to download from HMRC and very informative. The one big failing with HMRC is they send mail out by slow boat from Malta and it takes 28-30 days to arrive at your NZ home so beware. Do as much as you can to get online with HMRC BEFORE you leave.......
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Old Feb 14th 2016, 8:06 pm
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Default Re: UK Sate Pension

Originally Posted by MrsFychan View Post
The exchange rate is fairly good at the moment so that will have to be factored in .....
Factored in by who? And for what purpose? ..... Tell the DWP that you're overseas and give them your bank details and your pension arrives automatically in local currency.
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Old Feb 15th 2016, 4:58 am
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Default Re: UK Sate Pension

This seems to be going off topic. The OP asked when he has to inform the International Pensions Service, my advice would be to wait a few months to let everything settle down then inform them that you have really decided to move for good ie not a fact finding mission :-) Your State Pension will go into your UK account in the interim.

Most of the comments refer to decisions you will have to make later eg whether you want your uk pension to stay in uk (with you transferring it as needed) or whether you want it paid by the uk to an NZ account directly.

Given the tax holiday you probably want to stay with the uk pension for 4 years at which point you might want to swap to the NZ one which is (currently) higher and will be index linked.

Peter
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Old Feb 15th 2016, 5:38 am
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Default Re: UK Sate Pension

NO get the pensions sorted NOW for your wife and make sure you can access HMRC on line site before you leave the shores as I have said mail will take 28-30 days to reach NZ and to register for online self assessment you will need a validation code that has to be entered within 30 days.....and you will struggle to achieve that from here....believe me....NOT off topic. I have spent 4 years in NZ getting to deal with HMRC get Gateway entry now.

Look at SI 1984 Number 365 and Protocol.(double taxation form so the UK will not tax your state pension for 48 months,you submit this to IRD and this is then sent to HMRC to leave your money alone)

Have a look at SA 109 and HS 304 forms they will be required on your self assessment yearly submission, when you complete these you leave your pension incomes as nil. This will also apply to any private pensions coming your or your wife's way.
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Old Feb 15th 2016, 6:02 am
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Default Re: UK Sate Pension

Originally Posted by Stormer999 View Post
NO get the pensions sorted NOW for your wife and make sure you can access HMRC on line site before you leave the shores as I have said mail will take 28-30 days to reach NZ and to register for online self assessment you will need a validation code that has to be entered within 30 days.....and you will struggle to achieve that from here....believe me....NOT off topic. I have spent 4 years in NZ getting to deal with HMRC get Gateway entry now.

Look at SI 1984 Number 365 and Protocol.(double taxation form so the UK will not tax your state pension for 48 months,you submit this to IRD and this is then sent to HMRC to leave your money alone)

Have a look at SA 109 and HS 304 forms they will be required on your self assessment yearly submission, when you complete these you leave your pension incomes as nil. This will also apply to any private pensions coming your or your wife's way.
The OP will be panicking when he reads this. His wife already receives the State Pension and I assume he has already applied for his (payable on 1 May). The UK State pension is paid tax free in UK and he won't pay any more tax if he moves to NZ (this disregards any other income of course). I have been down this route twice. He will have to of course complete both NZ and UK tax returns for this year.

Yes it is sensible to register with the National Gateway etc before leaving but only because trying to do anything with HMRC by letter can take several months (I don't exaggerate).

If you have complicated private/occupational pensions to deal with then get expert advice, but if basic govt pensions (mil/teachers etc already being paid) then it is straight forward).
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Old Feb 15th 2016, 7:18 am
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Default Re: UK Sate Pension

He will NOT have to fill in NZ tax forms on either his or his wife's pensions. After he fills in the double tax agreement forms IRD will tell him no contact is necessary for 48 months. I doubt after reading my post he will be panacking. Being paid UK state pensions in NZ is straight forward. If he is not earning NZ dollars he will NOT be subject to IRD tax returns. I am not writing this to score points but to HELP the OP. I do not think I have ever heard of the "International Pensions Service" that would be unhelpful. The OP can contact me .
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Old Feb 15th 2016, 7:38 am
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Default Re: UK Sate Pension

OK I will opt out - the fact I have done it twice without trouble is no doubt meaningless - though I will admit I didn't get the tax holiday the second time around.

Edited to add quite correct - International Pension Centre (not Service)

You will need to do a uk tax return for your uk income before becoming NZ tax resident ( nz will give you a Certificate of tax residency)
You will need to do a nz tax return of any nz derived income if any.

Have a nice day and good luck.

Peter

Last edited by Kotare; Feb 15th 2016 at 7:59 am.
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Old Feb 15th 2016, 12:50 pm
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Default Re: UK Sate Pension

WoW, well that clears that up! Thanks for all your replies.
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Old Feb 15th 2016, 5:38 pm
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Default Re: UK Sate Pension

as I said can be complicated, please gain professional advice on this matter where they will ask you for all the relevant information and give you an informed answer on your particular situation.
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