double taxation
Apr 22nd 2011, 5:13 pm
#1
Just Joined
Thread Starter
Joined: Apr 2011
Posts: 1
double taxation
i am retired living here in Spain.for 8 years now paying my taxies as we should.
just had two letters from the UK tax office stating that they my mod pension is to small to tax on its own so they are going to add my private pension to it so it might be taxed,my private pension and my state pension is already being taxed here in Spain.my mod pension cannot be taxed here in Spain.so i have written to them telling them they are breaking the law .on double taxation.i really don't
know what's going on in Britain lately.has any other ex pats had the same trouble.
just had two letters from the UK tax office stating that they my mod pension is to small to tax on its own so they are going to add my private pension to it so it might be taxed,my private pension and my state pension is already being taxed here in Spain.my mod pension cannot be taxed here in Spain.so i have written to them telling them they are breaking the law .on double taxation.i really don't
know what's going on in Britain lately.has any other ex pats had the same trouble.
Apr 22nd 2011, 6:45 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: double taxation
HMRC have really screwed up over the last year or two with regard to people like you (ie with multiple pensions).
They have issued literally millions of incorrect notices of coding - they claim it is due to their new computer system.
I have paid tax in Spain on my pensions for some years but they sent me two notices saying that they would be taxed in the UK. I sorted it out by contacting them.
Not everyone spotted the potential problem and a friend of mine told me yesterday that his pension this month was £600 less than usual. On checking he found that it was now being taxed in the UK.
You need to contact your tax office, preferably by phone and get them to sort it out. They don't seem to be able to work out which codings are right or wrong and rely on the taxpayer noticing the change and contacting them.
They have issued literally millions of incorrect notices of coding - they claim it is due to their new computer system.
I have paid tax in Spain on my pensions for some years but they sent me two notices saying that they would be taxed in the UK. I sorted it out by contacting them.
Not everyone spotted the potential problem and a friend of mine told me yesterday that his pension this month was £600 less than usual. On checking he found that it was now being taxed in the UK.
You need to contact your tax office, preferably by phone and get them to sort it out. They don't seem to be able to work out which codings are right or wrong and rely on the taxpayer noticing the change and contacting them.
Apr 22nd 2011, 9:05 pm
#3
Lost in BE Cyberspace
Joined: Feb 2008
Posts: 5,615
Re: double taxation
i am retired living here in Spain.for 8 years now paying my taxies as we should.
just had two letters from the UK tax office stating that they my mod pension is to small to tax on its own so they are going to add my private pension to it so it might be taxed,my private pension and my state pension is already being taxed here in Spain.my mod pension cannot be taxed here in Spain.so i have written to them telling them they are breaking the law .on double taxation.i really don't know what's going on in Britain lately.has any other ex pats had the same trouble.
just had two letters from the UK tax office stating that they my mod pension is to small to tax on its own so they are going to add my private pension to it so it might be taxed,my private pension and my state pension is already being taxed here in Spain.my mod pension cannot be taxed here in Spain.so i have written to them telling them they are breaking the law .on double taxation.i really don't
know what's going on in Britain lately.has any other ex pats had the same trouble.
Apr 22nd 2011, 10:53 pm
#4
BE Forum Addict
Joined: Sep 2010
Location: Near Alora....but not too near. :)
Posts: 1,646
Re: double taxation
HMRC have really screwed up over the last year or two with regard to people like you (ie with multiple pensions).
They have issued literally millions of incorrect notices of coding - they claim it is due to their new computer system.
Not everyone spotted the potential problem
They have issued literally millions of incorrect notices of coding - they claim it is due to their new computer system.
Not everyone spotted the potential problem
The tax department is being run by a bunch of incompetents!
Apr 23rd 2011, 5:01 am
#5
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Joined: Apr 2010
Location: London (mainly)/Oliva
Posts: 2,137
Apr 23rd 2011, 7:04 am
#6
Forum Regular
Joined: May 2009
Location: Frigiliana
Posts: 97
Re: double taxation
You need to complete a form you can obtain on the HMRC website. Link attached http://www.hmrc.gov.uk/cnr/spain-individual.pdf
I am a resident in Spain and pay taxes in Spain. I have a UK government pension that is taxed in UK. Towards the end of last year I reached state pension age and I will declare the state pension with my other earnings in Spain for tax purposes next month.
But I got a letter from HMRC telling me they had reduced my Tax Code for 2011-2012. I phoned to explain the situation and they told me to complete this form. I will take it to my gestor to be passed to Hacienda, who in turn will confirm to HMRC that I pay tax in Spain and the tax code will be corrected and the extra tax that has been taken incorrectly from my government pension will be refunded.
I am a resident in Spain and pay taxes in Spain. I have a UK government pension that is taxed in UK. Towards the end of last year I reached state pension age and I will declare the state pension with my other earnings in Spain for tax purposes next month.
But I got a letter from HMRC telling me they had reduced my Tax Code for 2011-2012. I phoned to explain the situation and they told me to complete this form. I will take it to my gestor to be passed to Hacienda, who in turn will confirm to HMRC that I pay tax in Spain and the tax code will be corrected and the extra tax that has been taken incorrectly from my government pension will be refunded.
Apr 23rd 2011, 4:08 pm
#7
BE Forum Addict
Joined: Sep 2010
Location: Near Alora....but not too near. :)
Posts: 1,646
Re: double taxation
You need to complete a form you can obtain on the HMRC website. Link attached http://www.hmrc.gov.uk/cnr/spain-individual.pdf
I am a resident in Spain and pay taxes in Spain. I have a UK government pension that is taxed in UK. Towards the end of last year I reached state pension age and I will declare the state pension with my other earnings in Spain for tax purposes next month.
But I got a letter from HMRC telling me they had reduced my Tax Code for 2011-2012. I phoned to explain the situation and they told me to complete this form. I will take it to my gestor to be passed to Hacienda, who in turn will confirm to HMRC that I pay tax in Spain and the tax code will be corrected and the extra tax that has been taken incorrectly from my government pension will be refunded.
I am a resident in Spain and pay taxes in Spain. I have a UK government pension that is taxed in UK. Towards the end of last year I reached state pension age and I will declare the state pension with my other earnings in Spain for tax purposes next month.
But I got a letter from HMRC telling me they had reduced my Tax Code for 2011-2012. I phoned to explain the situation and they told me to complete this form. I will take it to my gestor to be passed to Hacienda, who in turn will confirm to HMRC that I pay tax in Spain and the tax code will be corrected and the extra tax that has been taken incorrectly from my government pension will be refunded.
Apr 23rd 2011, 4:51 pm
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,898
Re: double taxation
Like all things in Spain - it depends on the people in the office you visit.
There have been many reports of Hacienda refusing to handle the Form FD9 process that has been referred to - why should they involve themselves in extra work just because it is actually a legal requirement!
At the very worst, if you have paid tax in Spain and can prove it to HMRC by producing a Spanish tax declaration they will be happy to issue a zero tax code and refund any tax paid in the UK.
However the OP seems to have already been integrated into both systems in that he was paying tax in Spain and not having tax deducted in the UK.
What has happened is that HMRC have lost the plot yet again and are issuing crazy tax codes or demands.
As I said earlier, the only way to sort it is to talk to the relevant tax office in the UK. From my experience they fully realise what a cockup it is and are happy to sort it out.
There have been many reports of Hacienda refusing to handle the Form FD9 process that has been referred to - why should they involve themselves in extra work just because it is actually a legal requirement!
At the very worst, if you have paid tax in Spain and can prove it to HMRC by producing a Spanish tax declaration they will be happy to issue a zero tax code and refund any tax paid in the UK.
However the OP seems to have already been integrated into both systems in that he was paying tax in Spain and not having tax deducted in the UK.
What has happened is that HMRC have lost the plot yet again and are issuing crazy tax codes or demands.
As I said earlier, the only way to sort it is to talk to the relevant tax office in the UK. From my experience they fully realise what a cockup it is and are happy to sort it out.
