Stokkevn

Better not be the reciprocal tax agreement, that will hurt.

Philosophical 11

I suspect it is...that's the only reciprocal agreement I know of.

If it is, not sure how that will affect me for instance. I have my pension paid into my UK account and transfer money from that to here.

Millhouse

keep it that way.

Stay under the radar.

Stokkevn

It could mean that your pension ( that part above the UK tax threshold ) will be taxed in the UK and then everything above the Philippine tax threshold as it enters the Philippines ( somewhere near the 32% mark ).

Stokkevn

The real nasty fighting will start in the EU now. France has said that now the UK is leaving there is no longer any requirement to speak English in the EU parliament, this should be replaced by - yes you have guessed it French.

Gazza-d

Lucky the tax levied on pensions in the Philippines is 0%.....although I'm sure they could make an exception for foriegners. At present you can opt to have your Uk pension paid in the Philippines which leaves your UK tax threshold for other income. If the reciprical arrangement is removed UK tax rule will apply to the whole amount.

Philosophical 11

Hi Gazza,

Which pension(s) is this applicable to..... I have state pension, military pension and private pension. I also believe Philippine status comes into this also, ie I do not think it is applicable to those with a tourist visa.


Regards

Pete

Gazza-d

I beleive only the state pension. as for tourists if you choose to have your pension paid in the Philippines I believe you only have to elect to have it paid there, as there is no requirement of the tourists in the Philippines to return ever to their own country so you could stay indefinitly.

Stokkevn

What is the age when you are a pensioner here, just asked the missus, she does not know.

Gazza-d

I think it is 60.

Stokkevn

Good, just a pensioner then. Thanks

quiltman

Pete,
your state and Military pensions are classed as government pensions. These are excluded from the double taxation treaty. your private pension is not and can be paid gross - you have to download and fill in the DTT individual forms from HMRC and send them back. I have 2 private pensions and get them paid gross. my State pensions are over the tax free limit so i do an annual self assessment and pay HMRC what I owe.

quiltman

I assume this is the Social Security reciprocal agreement. The UK allows the NI etc that OFWs in the UK pay to be credited towards their Filipino pension.
OFWs can also access the NHS free, just as UK citizens. Here's the blurb:
https://www.gov.uk/national-insurance-if-you-go-abroad

It's because of this agreement that we get the annual increase in pensions.
There is also a double taxation agreement.

Gazza-d

I believe they can put the credits to a UK pension, I know Philippine SSS can be used as credits to a UK pension.

Raffin

It's very reassuring to know about that Social Security reciprocal agreement in relation to our annual pension increases. Thank you Quiltman.

And the British government is hardly likely to anger all those OFW nurses helping to prop up the NHS, especially as controls on EU nurses are likely to be coming in at some point.

British Expats residing in the EU have a bit more to worry about on this issue as a result of Brexit as there will probably be some renegotiation of their Social Security agreement(s). But even there I think they will be alright. A few years ago the British Government was taken to court over its policy of selective payment of pension increases around the world. They eventually won the case but may not like to defend that policy again against potentially larger groups of retired British Expats?