Taking care of UK matters after obtaining permanent resident status
 

Hi all,
As previous posts show I entered the USA in an H1-b and then obtained permanent resident status. I will almost certainly look to become a citizen. I understand that there is a time requirement etc.
In reading this section of the forum I am wondering if there is anything I need to do relating to the uk for taxes or national insurance contributions etc.
Do I need to inform the uk that I am now a permanent resident of the USA?
Also if one day I move back to the UK would I be entitled to draw a pension based on the national insurance contributions I made before moving to the USA?
It seems from reading other topics in this forum that some people have continued to make some sort of contribution to the uk whilst being a permanent resident in the USA- is there a reason for this or am I reading it incorrectly.
Thank you for your replies in advance.

Re: Taking care of UK matters after obtaining permanent resident status
 

Others will be along with more detailed answers to your questions, but here's my twopennyworth to start:
1. Did you send HMRC a P85 to tell them you were leaving the UK?
2. Permanent residency. The P85 asks if this move is intended to be permanent.
3. Pension: Yes, you can draw a UK pension based on your contributions up to when you left. Nearer the time you can apply to the DWP for a pension estimate.
4. Currently you can make additional contributions although it is changing from Class 1 to Class 3 level, but is still very good value for money in terms of the extra pension it buys you.

The BE "experts" will doubtless give you much more detail in due course.
Hope this is of some help!

Re: Taking care of UK matters after obtaining permanent resident status
 

OP, you don't have to return to the UK in order to receive any pension you have accrued prior to leaving. You can claim from the US and it can be deposited directly into a US bank account if you wish.

Re: Taking care of UK matters after obtaining permanent resident status
 

You should have files a P85 to tell HMRC you are not a UK resident so they can adjust your tax code to NT. If you have UK source income you need to make sure that you pay the correct amounts of tax to the UK and the US. Those amounts will depend on the type of UK sourced income and gains you have.

As a UK non-resident citizen you might qualify to pay voluntary NI. This is a good deal as the Class 2 contributions are inexpensive and it's easy to have your UK state pension paid to you in the US if you make it your permanent home.

Re: Taking care of UK matters after obtaining permanent resident status
 

Not wishing to hijack the thread, but I didn't file a P85 when I left the UK and have been here more than 6 years now. Should I file that to avoid any problems with HMRC when future pensions become available? Not that long to go now!

Re: Taking care of UK matters after obtaining permanent resident status
 

Thank you for all of your responses. No I didn't file. P85 with HMRC. I will do that now.
How would filling a P85 affect me now though? I do not have any income from the UK.

Also, does anyone know how I would make voluntary N.I. contributions? Is there a website to sign up to do this?

Thank you again.

Re: Taking care of UK matters after obtaining permanent resident status
 

Uh, I didn't do (know) this - Can you get in trouble for not-notifying them till now?

Re: Taking care of UK matters after obtaining permanent resident status
 

In addition, the P85 is for claiming back any tax that you may have overpaid for the tax year in which you left. I received a cheque for about 2k two or three months after sending it in. I think there is a time limit. Dont claim you loose!

Re: Taking care of UK matters after obtaining permanent resident status
 

Firstly you have to apply to be allowed to, and it isn't done on line. The first step is to phone the DW&P international unit in Newcastle and they will send you the form to complete. It takes a couple of months to get the paperwork set up, so start soon, well ahead of the UK tax year end next April, 5th.

Re: Taking care of UK matters after obtaining permanent resident status
 

No, filing a P85 is quite optional, but it's a good idea for almost all ex-pats to do so as you'll probably get some UK income tax refunded.

Re: Taking care of UK matters after obtaining permanent resident status
 

Indeed. :) I filed a P85 a few years after I left the UK and got a nice deposit of quite a few thousand pounds, mostly due to not receiving the full personal allowance in the year that I left.

You become eligible for the full personal allowance at the start of the tax year, but if you're paid via PAYE, that personal allowance is generally split across the year (£11,000 / 12 = 916.67) via your tax code. If you leave the UK, say, half way through the year, you have potentially not received your full personal allowance, but been taxed as though you have. If there is overpaid tax, the HMRC can send you a refund in the form of BACS payment to a UK bank account or a cheque.

You have six years in which you can reclaim overpaid tax.

Re: Taking care of UK matters after obtaining permanent resident status
 

OK apologies in advance if this is a retarded question, but is it possible my former employer filed this on my behalf? The reason I ask is that the payroll officer came into my office during my notice period to discuss my moving to the USA, marriage.etc .etc .etc and around a month after I left said company, I got a tax refund, and a package from said employer detailing what happens with my pension with moving abroad.

Re: Taking care of UK matters after obtaining permanent resident status
 

Many thanks to everyone who answered my question! Just filled the form online. Not holding my breath as it's more than 6 years since we left, but at least they know I'm not resident for tax purposes any more.

Re: Taking care of UK matters after obtaining permanent resident status
 

Re: Taking care of UK matters after obtaining permanent resident status
 

Quite possibly if you got a refund. Just ring HMRC and ask.