MidAtlantic

Yes, you need to register. Strathclyde Pension Fund has no way of knowing your wife's taxation status. Without anything from HMRC they will place her on an emergency code. My experience is that I completed Form 2002 once, several years ago, and nothing further has been needed. When the Pension Fund receives the NT code they will refund all previous tax paid, provided it is within the same tax year.

tomwilley

Hi Guys,
Just received a letter today from the IRS stating that they have approved my Form 8802 and they have mailed the certification to the UK.
Now I will mail my Form 2002 to the IRS.

I'll keep you guys posted.

Tom

durham_lad

Thanks for the update - good luck.

Sirkingcat

on this form what is the irs account number, bearing in mind it also asks for the social security number?

durham_lad

Good question.

I just checked my copy of the form I filed and I used my SSN in that field as well, even though there is another field for SSN. I figured there may be instances of individuals that have an IRS account number as well as a SSN. That is certainly the case in the UK where those of us who do a self assessment tax return have an account number with HMRC (called a UTR) as well as a National Insurance number.

EdgeAA

I have a question off the back of this which will probably apply to a relative of mine next year, when you claim a pension from the UK (lets assume the not getting taxed in the UK part goes smoothly), do you have to do quarterly estimated payments to IRS for it to be taxed in the US or is there another way the tax is collected here rather than filing it all at the end of year tax return? These will be final salary pensions so just a fixed monthly income (with inflation adjustment once a year) for life without any lump sums or actual balances like a 401k here would have.

durham_lad

Short answer is “yes”. What I did was adjust my withholding from my pay, and later my US pension, by filing a W4 with payroll to add an extra monthly sum to cover the expected taxes.

Sirkingcat

Thank you,

TerryGoX

On the issue of tax, my tax code is 1275L so I have 12750 pounds tax free - if I make a withdrawal, how does AJBell determine if tax should be withheld? If I take 2000 pounds, do they attempt to see if my YTD tax is over the allowance or simply annualize so assume I will withdraw 24,0000 so tax me. I do want to pay tax as the logical next step to get NT status but not sure what amount will trigger the tax withdraw. I have taken out the 25% of one of one funds to simplify the situation and then took a further 1000 pounds but no tax was deducted. I don't need the money out yet but any advice on what amount to withdraw?

tomwilley

Hi Guys,
I've just received my certified Form 6166 from the IRS and they have also returned my original HMRC form which now has the official stamp at the bottom of page 1 in the box that says "For use by the United States Internal Revenue Service."

I am now assuming that the IRS have forwarded my application and the form 6166 to HMRC (as per the instructions to the IRS from HMRC in the box at the bottom of page 1. I now have to wait for HMRC to contact me. I'm assuming that I don't have to do anything else at this point?

It would be good, if someone would confirm this.

Thanks guys,
Tom

Sirkingcat

Sent the docs for double taxation to hrmc, and they sent them back to me stating I have to be drawing the pension before they will do anything, and I need to resubmit at that time. Has any one else come across this, as I am a bit frustrated by this as I have talked to several hrmc folks, who said it was fine to do this early but in same year….

Pierre_Tete

That is the way it works. One tactic you might consider is to draw only a small pension amount for the first several months during which time you can apply for a NT tax code without having too much withheld, then ramp up the withdrawals after you have the correct code.
On a related note, I've read here that some folks have apparently needed to apply for a NT code again when starting to draw a second pension which for some reason also had tax withheld. That was not the case for my wife - once she had the NT code from her first pension, when the time came to claim her second pension it went through the system correctly on the first payment with the NT code and no withholding. I've also read here that some folks got the NT code and yet it reverted back to emergency tax code after a few years - that's also never happened to my wife.

durham_lad

Not a surprise really. I was certainly drawing my pension when I applied for the NT code and it was a quick response, with the tax paid refunded on my next pension payment.

The NT code didn’t change when I moved back to England. The year after I moved back I started drawing a 2nd UK pension and it does have a tax code and I have taxes withheld on it, but my original pension still has an NT code and no withholding from it. It makes little difference to me since I pay via self assessment so pay estimated taxes to HMRC every January and July. I mention this only to point out that HMRC certainly only seems to assign tax codes at the time one starts drawing a pension.

SanDiegogirl

Just an update on my tax code situation.
Back in August '23 I said I had received a NO TAX tax code; but the code had an X on it and it meant that AJ Bell could not re-imburse my already paid tax.
After sending a couple more forms (think the one regarding dual taxation and another form(again) telling HMRC I had left UK in 2000, early February 2024 I received a NO TAX code without the X and have now received by back taxes.
Phew..... at last.......

durham_lad

What a journey! Well done.