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Another Pension question.

Another Pension question.

Old Mar 19th 2019, 4:46 pm
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Default Another Pension question.

Did a search on this most talked about topic so forgive me if its already been mentioned. US based for many years and already receiving SS. Just received the first of my UK monthly state pension that went into my UK Bank account, plus a few weeks before that just over £9000.00 in one lump sum. Some may recall on a previous post of mine, there was confusion as my wife came under the old pension rules if she would receive 60% of my pension or nothing at all. Called them and received a text that its being looked at and they are writing to me with the details, so will know shortly.

Anyway, my question is this. I have a UK accountant who was doing my books for me up until last year regarding other UK income that was reported and all taxes have been paid, but he said that he would now remove me from the system as no income was coming in but since I decided to receive UK state pensions this year, and know that I will be reporting this income over here next year, but do I have to also employ him again to do our taxes in the UK? I reckon with my monthly pension for this year, including the lump sum, it would come to about £16500.00. I am not sure but the single man's UK allowance is around $11800.00. I know others here have their UK Pensions go to a UK Bank and wondered what you do in this situation for tax prposes? Perhaps not report this at all in the UK due to the reciprocal arrangement and not paying tax twice? Just want to do this right.

Many thx. Bran.

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Old Mar 19th 2019, 6:19 pm
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Default Re: Another Pension question.

You need to get the IRS to certify you are tax resident in the US, that will exempt you from UK taxes. Forms 8802 and 6166.

Instructions here https://www.irs.gov/individuals/international-taxpayers/form-8802-application-for-united-states-residency-certification-additional-certification-requests

and here https://www.irs.gov/individuals/inte...-tax-residency

Last edited by lansbury; Mar 19th 2019 at 6:46 pm.
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Old Mar 20th 2019, 4:02 pm
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Default Re: Another Pension question.

Thx Lansbury..

Should this be done immediately or can it wait nearer to 2019 tax season?
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Old Mar 20th 2019, 7:40 pm
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Default Re: Another Pension question.

Originally Posted by branmin View Post
Thx Lansbury..

Should this be done immediately or can it wait nearer to 2019 tax season?
It hinges more on the UK tax year. If you are going to receive payments before April 5th best to get it done quickly. If after that date it can wait, but if you don't do it tax might be deducted if due, and then refunded when HMRC give you no tax status in the UK.

If you income stays below the tax free allowance there isn't a real need to do it. The State pension is paid without tax deducted, but counts towards the tax free allowance. (Someone correct that if I'm wrong). Getting residency certification is a one off thing so once sorted it is done and dusted.

Last edited by lansbury; Mar 20th 2019 at 7:48 pm.
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Old Mar 20th 2019, 11:15 pm
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Default Re: Another Pension question.

Forgive my ignorance but what is the tax free allowance? Are you referring to the standard personal allowance of £11850.00? I think perhaps you are.....regardless, again many thx.
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Old Mar 21st 2019, 3:15 am
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Default Re: Another Pension question.

Originally Posted by branmin View Post
Forgive my ignorance but what is the tax free allowance? Are you referring to the standard personal allowance of £11850.00? I think perhaps you are.....regardless, again many thx.
Yes sorry the personal allowance. Showing my age there/
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