British Expats

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-   -   Winter fuel allowance (https://britishexpats.com/forum/spain-75/winter-fuel-allowance-772879/)

Domino Sep 29th 2012 7:56 am

Re: Winter fuel allowance
 

Originally Posted by CapnBilly (Post 10306097)
But the UK state pension is not taxed at source, so the allowances will generally cover it. This means that its other income that might be taxable, and you're right that any tax paid will be offset, in terms of not paying twice. However, a couple of observations

1. There are recent reports that the Hacienda are insisting that you pay the full amount of tax , and claim back what you have paid in the UK, which you can do, with certain exceptions.

2. I think choose is the wrong word, because it implies that once you have made the choice you don't have to pay tax in Spain, which as we know is now causing people problems.

The UK general retirement pension is not a tax free payment. It is subject to tax evaluation the same as all other income. That the pension is below the tax free allowance is another matter - but the pension is still taxable, and if (some hopes) it should rise to above the tax free allowance then it will be subject to tax being charged.

Leither Sep 29th 2012 7:59 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306095)
isnt that "the question"??

when that nice man Jock Salmond gets to rule his own country what will happen when he finds that the payment per head from London (which is lower than the payment for anyone in England or Wales) will cease to come into his coffers every month. Then he will suddenly find that all the subsidised freebies he is giving his people will suddenly cease as he will have no money. Worse he will not automatically be granted membership of the EU and will fail the fiscal tests of the Eurozone.

Then all his home loving eejuts strutting around in their kilts will suddenly find their sporans are empty and start travelling South into England.:eek:
Where the Army will be able to practice their Afghanistan anti-terrorist tactics as they try to come over Hadrian's Wall.
:thumbsup:

That makes no sense. Have you been on the Buckfast?

CapnBilly Sep 29th 2012 8:09 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306101)
so far unsubstantiated so please provide the reference otherwise it is hearsay and untrue.

There was a post by someone it had happened to on another forum of which I am a member

Supplementary post

I've just remembered there was a letter in the Costa Blanca News a couple of weeks ago about this.
Someone who said they'd been asked to pay the full amount of tax and claim back from the UK, even though it was a police pension, and therefore incorrect, as its treated as a government pension under the DTA.

CapnBilly Sep 29th 2012 8:13 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306104)
The UK general retirement pension is not a tax free payment. It is subject to tax evaluation the same as all other income. That the pension is below the tax free allowance is another matter - but the pension is still taxable, and if (some hopes) it should rise to above the tax free allowance then it will be subject to tax being charged.

I'm not saying it is tax free, you need to read my post in the context of the other posts it refers to.

Fred James Sep 29th 2012 8:14 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306101)
so far unsubstantiated so please provide the reference otherwise it is hearsay and untrue.

It is perfectly true.

You must pay tax in Spain on your UK state pension.

If you have been taxed on it in the UK you can claim that back against your Spanish tax.

UK tax is never deducted from the UK pension at source but if you have other income any tax due on the state pension will be deducted from the other income via your tax coding.

If this is the case you can ask HMRC to pay your pension income (state and private pension) tax free in the UK.

lynnxa Sep 29th 2012 8:21 am

Re: Winter fuel allowance
 

Originally Posted by CapnBilly (Post 10306097)
But the UK state pension is not taxed at source, so the allowances will generally cover it. This means that its other income that might be taxable, and you're right that any tax paid will be offset, in terms of not paying twice. However, a couple of observations

1. There are recent reports that the Hacienda are insisting that you pay the full amount of tax , and claim back what you have paid in the UK, which you can do, with certain exceptions.

2. I think choose is the wrong word, because it implies that once you have made the choice you don't have to pay tax in Spain, which as we know is now causing people problems.

I didn't say you could choose exactly, - but yes, I see what you mean

I did say that you have to make a tax declaration in Spain, which should clear up any confusion

bobd22 Sep 29th 2012 8:54 am

Re: Winter fuel allowance
 

Originally Posted by feelbritish (Post 10306094)
Fair enough :) Again it is just another one of those "entitlements" that everyone wants even if they do not need it! Ask the younger people in UK who will be funding this how they feel? Especially those who have had the child credit cut because they earn over the threshold? Knowing that when they get to retirement age there may not be anything for them? Paying taxes is two fold, one to manage the country, and keep it safe, and fund the NHS and the Old Age Pension (which should just be a supliment not the main pension) second as an insurance for people against loss of employment, financial disasters etc. and for the truly needy in their old age. Do the EU members (Spain for example) have to give heating allowances to their citizens living in UK, or does the UK do that too out of all the taxes they collect?

I think that is why the current government or at least Mr Duncan Smith wants the increased but standardised pension to do away with all these add on's.

I also take your point re the younger ones and what will it be like for them. However I also believed that I would get a pension at 65 and my wife at 60. In a very short space of time we now find mine is ok as I get it at 65 and 1/2 my wife though has to wait extra 6 years. Her loss of pension for that period is over £38,000. Given that we have both worked and paid our dues I'm afraid if I am entitled to something from my contributions then I will obviously claim it.

I do take also your point that it is ridiculous that people come to the UK and are entitled to claim everything that we that have paid NI for, when they haven't paid into it. However that is down to it being residence based system, maybe that is more the reason there will be very little in the pot for our children more than expats claiming a few 100 quid. Of course our great leaders would never admit to that.

bobd22 Sep 29th 2012 9:00 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306095)
isnt that "the question"??

when that nice man Jock Salmond gets to rule his own country what will happen when he finds that the payment per head from London (which is lower than the payment for anyone in England or Wales) will cease to come into his coffers every month. Then he will suddenly find that all the subsidised freebies he is giving his people will suddenly cease as he will have no money. Worse he will not automatically be granted membership of the EU and will fail the fiscal tests of the Eurozone.

Then all his home loving eejuts strutting around in their kilts will suddenly find their sporans are empty and start travelling South into England.:eek:
Where the Army will be able to practice their Afghanistan anti-terrorist tactics as they try to come over Hadrian's Wall.
:thumbsup:

Domino I hope they get them before Hadrians Wall as I live a little bit north of that can I suggest Berwick please.

feelbritish Sep 29th 2012 9:12 am

Re: Winter fuel allowance
 

Originally Posted by Domino (Post 10306100)
what a load of unwarrented old tosh :thumbdown:
suggest you contact Sue and tell her you want to hand in your membership of BE. I am sure she will accept :fingerscrossed:

When I was a younger person in the UK I was paying in to keep the elderly living around the world. I was also paying for schoold children to be (poorly) educated even though at the time I didn't have any children.

I have made a note to send you a PM when it gets really cold here, currently a balmy 14c, no sun visible for 2.5 days. But last winter we had weeks of nights at -10c, something quite unusual except in the upper reaches of Scotland.
So you tell me again why when I was paying taxes and ni why it was being given to Poles who were receiving Child Benefit for children where the UK had no record of their birth and no way of checking for sure they actually existed.

Get a life and go and annoy some other forum, not the nice people of BE

kind regards

ok fair enough, my apologies, they will just have to find the money, maybe they can take it away from those benefit defraudsters and not just the Poles. Our pension will not even be indexed as we are not in the EC and we have also paid into the system! Maybe a fairer system would be to up the pension amount payable and leave off all those bits and pieces like the different benefits thereby everyone who paid gets the same wherever they are living!

bobd22 Sep 29th 2012 9:19 am

Re: Winter fuel allowance
 

Originally Posted by feelbritish (Post 10306204)
ok fair enough, my apologies, they will just have to find the money, maybe they can take it away from those benefit defraudsters and not just the Poles. Our pension will not even be indexed as we are not in the EC and we have also paid into the system! Maybe a fairer system would be to up the pension amount payable and leave off all those bits and pieces like the different benefits thereby everyone who paid gets the same wherever they are living!

I think that is the plan of Ian Duncan Smith however my understanding of what they plan is that it will not affect those already in receipt so I'm afraid unfortunately you will dip out. Also one thing if they do do this what about all those that have paid SERPs for a bit better pension they will have paid for nothing. Still I suppose nobody said life was fair hence if I am entitled I will make sure I claim it lol

megmet Sep 29th 2012 12:45 pm

Re: Winter fuel allowance
 

Originally Posted by Lynn R (Post 10305991)
This is no more ludicrous than paying child benefit for the children of citizens from other EU countries who are working in Britain, although the children themselves may not be resident there. Not that they are doing anything wrong, because the system allows it.

Or paying state benefits to more than one wife and family of men in polygamous marriages, whilst bigamy is illegal in Britain.

My OH has been enabled to claim the WFA for the first time by the recent European Court ruling, and will certainly be claiming it. Having worked and paid taxes and NI in the UK for 40 years, then if a universal benefit it available to all UK pensioners then everyone eligible should certainly claim it.

:goodpost:
And of course we have paid taxes all our lives in the UK and many of us are still paying tax there as well as here!
As expats we will never get any of the benefits that pensioners in the UK get as a right (even those who have not contributed), so even when getting the WFA in Spain we are still saving the UK government money by living here!

Just for those who don't know.... Spain does in fact get cold in the winter, inland often gets to freezing and below, and many of us don't live on the coast!

feelbritish Sep 29th 2012 4:01 pm

Re: Winter fuel allowance
 

Originally Posted by bobd22 (Post 10306210)
I think that is the plan of Ian Duncan Smith however my understanding of what they plan is that it will not affect those already in receipt so I'm afraid unfortunately you will dip out. Also one thing if they do do this what about all those that have paid SERPs for a bit better pension they will have paid for nothing. Still I suppose nobody said life was fair hence if I am entitled I will make sure I claim it lol

I forgot yes when I was management I was also paying Serps with the hope of a better pension, but then I moved here and am paying voluntary NI so that is out the window and my retirement age also was moved back to 66!

Lynn R Sep 29th 2012 8:23 pm

Re: Winter fuel allowance
 

Originally Posted by feelbritish (Post 10306094)
Fair enough :) Again it is just another one of those "entitlements" that everyone wants even if they do not need it! Ask the younger people in UK who will be funding this how they feel? Especially those who have had the child credit cut because they earn over the threshold? Knowing that when they get to retirement age there may not be anything for them? Paying taxes is two fold, one to manage the country, and keep it safe, and fund the NHS and the Old Age Pension (which should just be a supliment not the main pension) second as an insurance for people against loss of employment, financial disasters etc. and for the truly needy in their old age. Do the EU members (Spain for example) have to give heating allowances to their citizens living in UK, or does the UK do that too out of all the taxes they collect?

Perhaps the younger people in the UK should be concentrating their ire on the 120,000 "problem families" who the Government says are costing the country £9 billion per year - against which the cost of paying a £200 WFA to expat pensioners is a drop in the ocean.

http://www.bbc.co.uk/news/uk-politics-18882389

If the benefit system as it currently exists did not make it a better option for people to have any number of children (often born into chaotic family circumstances) than to get a job, because they could never hope to earn as much as they receive on benefits, then there would be more money available to help those genuinely in need such as people who have been working but lose their jobs, those genuinely too sick to work, and the elderly.

The Government's plans to introduce the £140 per week flat rate pension, which will replace means-tested pension top ups and other allowances, are seriously flawed, both because it will not be paid to existing pensioners thus creating a two-tier system which will remain expensive to administer, and because it will just pay even more money to those who do not need it as they would not have qualified for pension credit. My OH will miss out on the new pension by a matter of months, whereas I, who will have ample pension provision from final salary schemes, will receive it, albeit that my state pension age has been moved back twice, once from 60 to 65 and then again to 66.

bobd22 Sep 29th 2012 9:09 pm

Re: Winter fuel allowance
 
spot on Lynn, it is not us that have worked and paid our dues that are the problem. although that seems to be what the government want to make out. I feel no shame in claiming for something when I am entitled. Feelbritish thing for you I,m afraid is entitlement living in Canada.

Jontee Sep 29th 2012 9:10 pm

Re: Winter fuel allowance
 
Well I've sent my claim off and looking forward to getting the WFA and maybe this year I will be able to spend a bit more on my heating and can stop wearing fleeces and two pairs of socks in the house through the winter. Personally I have never been as cold in UK as I have been here, indoors, in the winter. The locals realise it is often warmer outside than in and that is why you will see their doors left open through the day whilst they sit indoors in their winter woolies. The main problem is lack of insulation and double glazing which is now the norm in UK.


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