Being taxed on UK State pension
Apr 22nd 2023, 5:27 pm
#31
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: Being taxed on UK State pension
Hello everyone,
Here I am again in the other world realm of dealing with HMRC....
As this thread explains, in 2021 I had many calls with HMRC, and sent documentation to them 3 times regarding my 20 year residency in the US - this all due to them sending me tax demands for my UK State pension which I started in Jan 2018.
In December 2021 I received a phone call from a 'specialist' in HMRC saying she had cancelled my tax demands and changed my tax code to NT.
In Jan 2022 I received HMRC Simple Assessment forms confirming 0 tax payable. I, of course, declare my UK State Pension on my US tax returns.
All good I thought, until now when I take my Private pension from my SIPPS.
HMRC have now issued me an emergency tax code ( due to my SIPPS provider informing them of me taking my private pension payments) and refers to outstanding tax demands of over $6,000 !!!
So, it looks like we shall be having many phone calls again.
Doing further research into how to obtain a NT code, we have come across Form P85 (something which no-one in HMRC has ever mentioned to us) which informs HMRC of your non residency status and situation.
I have never heard of this before. In all my dealings with HMRC they only referred to Form 8802 and certificate of US residency 6166 to confirm residency in the US. (both forms which we sent to HMRC several times)
Anyone else completed Form P85?
Here I am again in the other world realm of dealing with HMRC....
As this thread explains, in 2021 I had many calls with HMRC, and sent documentation to them 3 times regarding my 20 year residency in the US - this all due to them sending me tax demands for my UK State pension which I started in Jan 2018.
In December 2021 I received a phone call from a 'specialist' in HMRC saying she had cancelled my tax demands and changed my tax code to NT.
In Jan 2022 I received HMRC Simple Assessment forms confirming 0 tax payable. I, of course, declare my UK State Pension on my US tax returns.
All good I thought, until now when I take my Private pension from my SIPPS.
HMRC have now issued me an emergency tax code ( due to my SIPPS provider informing them of me taking my private pension payments) and refers to outstanding tax demands of over $6,000 !!!
So, it looks like we shall be having many phone calls again.
Doing further research into how to obtain a NT code, we have come across Form P85 (something which no-one in HMRC has ever mentioned to us) which informs HMRC of your non residency status and situation.
I have never heard of this before. In all my dealings with HMRC they only referred to Form 8802 and certificate of US residency 6166 to confirm residency in the US. (both forms which we sent to HMRC several times)
Anyone else completed Form P85?
Last edited by tht; Apr 22nd 2023 at 5:30 pm.
Apr 22nd 2023, 5:54 pm
#32
Lost in BE Cyberspace
Thread Starter
Joined: May 2010
Location: San Diego, California
Posts: 9,662
Re: Being taxed on UK State pension
We completed P85 yesterday on line. Don't know how much it will solve my issues, as we left the UK 20 years ago, but I'm trying all options at the moment to try and solve my tax problems.
Apr 22nd 2023, 10:19 pm
#33
Just Joined
Joined: Nov 2017
Posts: 15
Re: Being taxed on UK State pension
Yes I filled out the P85 and sent it off several months in advance of starting my UK private pension. Initially I got the Emergency tax code and did pay 3 months worth of UK taxes, but after about 2-3 months my company pension provider received the approval for HMRC to provide a NT code. Post receipt i got about 3 months refund of the taxes I had originally paid.
Apr 22nd 2023, 10:57 pm
#34
Lost in BE Cyberspace
Thread Starter
Joined: May 2010
Location: San Diego, California
Posts: 9,662
Re: Being taxed on UK State pension
Yes I filled out the P85 and sent it off several months in advance of starting my UK private pension. Initially I got the Emergency tax code and did pay 3 months worth of UK taxes, but after about 2-3 months my company pension provider received the approval for HMRC to provide a NT code. Post receipt i got about 3 months refund of the taxes I had originally paid.
Hi thank you for this.
I have just completed a P85 on line, but at no point did it ask for documentation proof of my living in the US.
When this whole saga started some 3 years ago I completed HMRC Form US-Individual 2002, Form 8802 for the US IRS, and the US IRS sent Certification of Residency (Form 6166) to HMRC to confirm my residency in the US - this is what I understood was need and others on the forum appear to have also used these forms to prevent dual taxation.
However, I've completed a P85 as another option to try and resolve my issues.
Apr 26th 2023, 9:22 pm
#35
Forum Regular
Joined: Mar 2021
Location: Newburyport, MA
Posts: 36
Re: Being taxed on UK State pension
Hello everyone,
Here I am again in the other world realm of dealing with HMRC....
As this thread explains, in 2021 I had many calls with HMRC, and sent documentation to them 3 times regarding my 20 year residency in the US - this all due to them sending me tax demands for my UK State pension which I started in Jan 2018.
In December 2021 I received a phone call from a 'specialist' in HMRC saying she had cancelled my tax demands and changed my tax code to NT.
In Jan 2022 I received HMRC Simple Assessment forms confirming 0 tax payable. I, of course, declare my UK State Pension on my US tax returns.
All good I thought, until now when I take my Private pension from my SIPPS.
HMRC have now issued me an emergency tax code ( due to my SIPPS provider informing them of me taking my private pension payments) and refers to outstanding tax demands of over $6,000 !!!
So, it looks like we shall be having many phone calls again.
Doing further research into how to obtain a NT code, we have come across Form P85 (something which no-one in HMRC has ever mentioned to us) which informs HMRC of your non residency status and situation.
I have never heard of this before. In all my dealings with HMRC they only referred to Form 8802 and certificate of US residency 6166 to confirm residency in the US. (both forms which we sent to HMRC several times)
Anyone else completed Form P85?
Here I am again in the other world realm of dealing with HMRC....
As this thread explains, in 2021 I had many calls with HMRC, and sent documentation to them 3 times regarding my 20 year residency in the US - this all due to them sending me tax demands for my UK State pension which I started in Jan 2018.
In December 2021 I received a phone call from a 'specialist' in HMRC saying she had cancelled my tax demands and changed my tax code to NT.
In Jan 2022 I received HMRC Simple Assessment forms confirming 0 tax payable. I, of course, declare my UK State Pension on my US tax returns.
All good I thought, until now when I take my Private pension from my SIPPS.
HMRC have now issued me an emergency tax code ( due to my SIPPS provider informing them of me taking my private pension payments) and refers to outstanding tax demands of over $6,000 !!!
So, it looks like we shall be having many phone calls again.
Doing further research into how to obtain a NT code, we have come across Form P85 (something which no-one in HMRC has ever mentioned to us) which informs HMRC of your non residency status and situation.
I have never heard of this before. In all my dealings with HMRC they only referred to Form 8802 and certificate of US residency 6166 to confirm residency in the US. (both forms which we sent to HMRC several times)
Anyone else completed Form P85?
I requested a P85 from the IRS about 2 years ago - it s costs about $85. I applied and received my UK state pension but they immediately gave me a NT status. This seemed very easy and partly due to COVID as I called up someone clearly at home who said that she could just click the right box instead of chasing paperwork - which presumably she did. Now I am drawing down a SIPP and will be allotted the emergency tax status - my SIPP provider asks why I don't take it tax free (under 25% rule) but that wouldn't give me any reason to chase HMRC. If I choose not to tax tax free they said that route is gone forever - not sure if thats true. I am electing to take small amount purely to get a NT status. I don't have a HMRC office as I haven't lived or earned in UK for 30 years so it is probably going to be painful. I do have the P85 as mentioned but the riule is that the IRS are supposed to supply that direct to HMRC, and I cant see that going to plan.
