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Being asked to pay UK taxes on UK State Pension

Being asked to pay UK taxes on UK State Pension

Old Aug 9th 2019, 11:25 pm
  #16  
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Default Re: Being asked to pay UK taxes on UK State Pension

I think you would be fairly unique to receive a State Pension that exceeds the personal allowance.
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Old Aug 10th 2019, 7:48 am
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by SanDiegogirl
Thanks for this.

My State pension is over the personal allowance ..... worked for over 35 years in the UK .....
I figured that was the case once you said that HMRC had written to you about it.
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Old Aug 10th 2019, 7:53 am
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by sid nv
For UK State Pension, I did not file Form 2002 as this only appears to be necessary when, for example, receiving a Company Pension. I receive State Pension only, so I filed Self Assessment with Form SA109, ticked box 16 to claim personal allowance, filled out box 22 to claim pension relief under the Tax Treaty, and included Helpsheet 304 with section 3(a) (Full Relief for state pension) showing the same amount under DTA Article 17. HMRC have received the return and the HMRC website says I do not owe any tax.
Mind you, it would not surprise me if I had to do this again every year, so filing Form 2002 is probably the way to go.
If you are prepared to stump up a 1 time fee of $85 then filing form 2002 will save the hassle of doing a self assessment every year. If doing the SA costs you nothing and is easy to do then it may well be worth it to you to continue filing.
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Old Aug 10th 2019, 7:42 pm
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by SanDiegogirl
Thanks for this.

My State pension is over the personal allowance ..... worked for over 35 years in the UK .....
Not wanting to pry, but the numbers do not stack up.

Maximum state pension is 168.60 per week so 8767.60 per year.

Single personal allowance is currently 12,500

To get over the allowance threshold there must be something else involved...?
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Old Aug 10th 2019, 8:19 pm
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by celticgrid
Not wanting to pry,
Then don’t, she asked a reasonable question, we don’t need to know more details of her income to give the answer to her question.


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Old Aug 10th 2019, 8:30 pm
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by celticgrid
Not wanting to pry, but the numbers do not stack up.

Maximum state pension is 168.60 per week so 8767.60 per year.

Single personal allowance is currently 12,500

To get over the allowance threshold there must be something else involved...?
I did not start my pension until age 70 (equals 8 years deferment at 10.8% pa increase) and, during my working life I paid into the, then, and now defunct, SERPS scheme, from which I get an additional amount.

Hope this clears up any confusion......
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Old Aug 11th 2019, 12:42 am
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by SanDiegogirl
I did not start my pension until age 70 (equals 8 years deferment at 10.8% pa increase) and, during my working life I paid into the, then, and now defunct, SERPS scheme, from which I get an additional amount.

Hope this clears up any confusion......
Okay. Thanks for the clarification. If you've filled out the forms mentioned previously then you should be good to go - just a matter of waiting for it all to process. And like many of us you can start bemoaning the terrible exchange rate at the moment!

You'll know things are moving firstly as the check gets cashed, plus you'll get a copy of the IRS certificate sent to you - so you'll have a rough idea of when they have also sent the paperwork onwards to the Inland Revenue.
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Old Aug 11th 2019, 12:51 am
  #23  
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by sid nv
I think you would be fairly unique to receive a State Pension that exceeds the personal allowance.
I expect there are quite a few people who get over the allowance from delay in starting pension, additional state pension, state second pension, graduated retirement benefit, top-up class 3A contributions,..
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Old Aug 11th 2019, 12:54 am
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by celticgrid
Okay. Thanks for the clarification. If you've filled out the forms mentioned previously then you should be good to go - just a matter of waiting for it all to process. And like many of us you can start bemoaning the terrible exchange rate at the moment!

You'll know things are moving firstly as the check gets cashed, plus you'll get a copy of the IRS certificate sent to you - so you'll have a rough idea of when they have also sent the paperwork onwards to the Inland Revenue.

Thanks for this..... cheque and forms on their way to IRS as we speak....
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Old Nov 23rd 2019, 3:24 pm
  #25  
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Default Re: Being asked to pay UK taxes on UK State Pension

Originally Posted by celticgrid
Not wanting to pry, but the numbers do not stack up.

Maximum state pension is 168.60 per week so 8767.60 per year.

Single personal allowance is currently 12,500

To get over the allowance threshold there must be something else involved...?
My mum gets over 220 gbp a week in state pension. I think this is because my dad paid into SERPS (State earnings related pension scheme, replaced by the state second pension in 2002).
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Old Nov 23rd 2019, 3:29 pm
  #26  
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Default Re: Being asked to pay UK taxes on UK State Pension

I actually came here to see if I have to file form 2002 and pay $85 to the IRS each year to not get taxed on my paltry UK private pension.

Thank you posters on this forum for clarifying that it carries over from year to year.

I went through this process earlier this year and it took just under 3 months from sending the forms off to the IRS, to receiving the refund from the HMRC and getting the monthly amount paid gross.
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