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cliff1961 - UK Pension and moving to USA

cliff1961 - UK Pension and moving to USA

Old Mar 19th 2015, 8:03 pm
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Default cliff1961 - UK Pension and moving to USA

Do you have to contact the "International Pension Centre" related to State pension before you leave for the US or can it wait near the time of Retirement and contact them in the US.

Not sure if there are any forms to complete in advance before you leave for the US ?
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Old Mar 19th 2015, 9:54 pm
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Default Re: cliff1961 - UK Pension and moving to USA

If you've been paying income tax and are expecting to be out of the UK for at least three years it's worth filing a P85 with HMRC - unless you happen to move right at the end of the UK tax year you'll probably get some sort of refund.

You can also elect to pay voluntary NI contributions to be able to receive your full state UK pension when you reach UK state pension age. If you've already got 35 years of contributions though that would be unnecessary.

Other than those, no you don't have to contact HMRC / DWP until you need to, to claim your pension.

Last edited by rpjs; Mar 19th 2015 at 9:56 pm.
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Old Mar 20th 2015, 9:40 am
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Default Re: cliff1961 - UK Pension and moving to USA

Unfortunately due to my health I had been on and of Employment and on Disability for the last several years but that still counts as contributions and have reached 35 years of contributions. Now 54 years old . . . I understand I have to contact the DWP so at this stage I do not have to contact the Pension Centre !

Last edited by cliff1961; Mar 20th 2015 at 9:44 am.
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Old Mar 20th 2015, 10:29 am
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Default Re: cliff1961 - UK Pension and moving to USA

If you are intending to move permanently to USA then yes, fill in a P85.
When the DWP send you the forms to claim your state Pension, and if you can prove you are registered for tax in the US, then under the double taxation agreement you can claim the State Pension tax free - assuming it is over your UK tax free allowance. The USA is one of only two countries where the agreement allows this. all other double taxation agreements specifically EXCLUDE State and Government pensions from being paid free of UK tax. Let the DWP know you are leaving and when the time is right, it will be the International Pensions dept who will send you the claim forms.
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Old Mar 20th 2015, 11:14 am
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Default Re: cliff1961 - UK Pension and moving to USA

Many Thanks for your Replies !
Contacted International Pension Centre,
Explained I had been claiming Welfare and they did not have a clue ?

Last edited by cliff1961; Mar 20th 2015 at 11:16 am.
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Old Mar 20th 2015, 10:46 pm
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Default Re: cliff1961 - UK Pension and moving to USA

Many Thanks for your Replies !

Contacted International Pension Centre,
Explained I had been claiming Welfare and they did not have a clue if I required to fill out anything as been on welfare and never asked that question before, only asked the question related to someone employed.
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Old Mar 20th 2015, 11:54 pm
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Default Re: cliff1961 - UK Pension and moving to USA

If you are asking about claiming benefits and who to notify you are leaving the UK this might answer your question. https://www.gov.uk/claim-benefits-abroad
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Old Mar 21st 2015, 12:51 am
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Default Re: cliff1961 - UK Pension and moving to USA

Originally Posted by lansbury
If you are asking about claiming benefits and who to notify you are leaving the UK this might answer your question. https://www.gov.uk/claim-benefits-abroad

Many Thanks for your reply Lansbury !

I just contacted the international pension centre explaining for the past several years as I had been claiming welfare due to my Disability do I still need to fill out any form in advance for me to be eligible to claim my State Pension over in the U.S ?

Some members explain P85 which the pension centre stated was mainly for people who had been in employment.
Not sure what about someone on welfare.

I guess when I go to JCP / Job Centre plus before I leave it will get sorted out there as all their systems are linked as he told me.
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Old Mar 21st 2015, 12:55 am
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Default Re: cliff1961 - UK Pension and moving to USA

Originally Posted by lansbury
If you are asking about claiming benefits and who to notify you are leaving the UK this might answer your question. https://www.gov.uk/claim-benefits-abroad

I was told by email enquiries "YES" you can claim your benefit due to the Regulations the UK has with the U.S only if you went through an assessment from one benefit onto the new one.

In my opinion appears too good to be true !

When I phoned the Centre, the very same person who answered my emails spoke to me and over the phone stated "NO"
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Old Mar 28th 2015, 6:22 pm
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Default Re: cliff1961 - UK Pension and moving to USA

All I know that you do not have to contact the international pension centre related to your state pension until you approach your retirement age.
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Old Mar 28th 2015, 9:36 pm
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Default Re: cliff1961 - UK Pension and moving to USA

What will your status in the US be?

If you leave the UK file a P85 so you can get your HMRC tax code correct. I'd file a change of address with HMRC and DWP, banks, pension providers etc. Check with your benefits people if you can continue to claim anything while in the US. If not you might qualify for benefits where you are moving......it will vary greatly depending on which state.

Take a look at "US Individual 2002" and make sure you understand the US rules regarding health insurance and whether you qualify to buy an ACA plan....again the particulars will vary greatly with state.
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Old Mar 28th 2015, 9:42 pm
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Default Re: cliff1961 - UK Pension and moving to USA

Originally Posted by quiltman
When the DWP send you the forms to claim your state Pension, and if you can prove you are registered for tax in the US, then under the double taxation agreement you can claim the State Pension tax free - assuming it is over your UK tax free allowance. The USA is one of only two countries where the agreement allows this. all other double taxation agreements specifically EXCLUDE State and Government pensions from being paid free of UK tax. Let the DWP know you are leaving and when the time is right, it will be the International Pensions dept who will send you the claim forms.
When paid to a US tax resident the UK state pension is only taxable in the US...so it isn't exactly tax free, you'll have to pay both Federal and State tax on it. Social Security type payments are treated differently from Government pensions as their taxation depends on both residency and citizenship.
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Old Mar 28th 2015, 10:11 pm
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Default Re: cliff1961 - UK Pension and moving to USA

Originally Posted by nun
When paid to a US tax resident the UK state pension is only taxable in the US...so it isn't exactly tax free, you'll have to pay both Federal and State tax on it. Social Security type payments are treated differently from Government pensions as their taxation depends on both residency and citizenship.
The UK state pension is never taxed in the UK as it is below the tax allowance.
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Old Mar 29th 2015, 2:11 am
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Default Re: cliff1961 - UK Pension and moving to USA

Originally Posted by mikelincs
The UK state pension is never taxed in the UK as it is below the tax allowance.
Any amount less than the personal allowance is UK tax free, unfortunately in the US the UK state pension is taxed as a foreign pension and not like US social security.
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Old Jul 11th 2015, 9:33 pm
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Default Re: cliff1961 - UK Pension and moving to USA

This is a very tedious first post! Apologies. Has anyone got any experience of whether they've been asked to file a 3520 for their pension? I am not receiving any payments - it was a pension attached to my university job - nothing interesting but their seems to be very convoluted advice about this. I'm also beginning to see the discussions about ISAs. Do we now consider that cash isa's ate not a problem for reporting but stocks and share's isa's are. The USA seems to have been one pile of FATCA and red tape since i've arrived!
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