UK Tax Question

[nigelforbes]

This year will be the first time I file a UK tax return where the UK State Pension has been remitted directly to my bank in Thailand.

 

My question is: which figure to use for the return, the actual amount received (which is minus any bank charges) or does DWP send something out that shows the total figure?

 

TIA

 

 

[Eff1n2ret]

I honestly don't know, I think you'd have to ask HMRC to get the definitive answer. My pension is paid into my UK bank, so the gross amount is what I am assessed on, regardless of any bank charges or variations on the exchange rate that I pay when I transfer money here. If you can persuade them that those charges should be rebated against your tax liability, good luck to you.

As regards DWP informing HMRC of what they pay you, it doesn't happen, because every year I have to remind HMRC that my state pension is not going to increase - their assessment assumes that it will.

Edited January 24, 2023 by Eff1n2ret

[Will B Good]

You will, I think, need to declare the GBP amount paid to you as it is that amount that will be used for calculating tax due.........unless you are a Tory voter, then you can just be careless and not tell them.

[Jumbo1968]

HMRC will be aware how much State Pension you receive, your tax allowance means you should not pay tax on it albeit I don’t know where you stand if you live in Thailand permanently.

[prakhonchai nick]

1 hour ago, Will B Good said:

ry

 

13 minutes ago, Jumbo1968 said:

HMRC will be aware how much State Pension you receive, your tax allowance means you should not pay tax on it albeit I don’t know where you stand if you live in Thailand permanently.

The gross amount of state pension is added to any other income your receive from the UK, and anything above the personal allowance is taxed.

[Dogbarker]

12 minutes ago, Jumbo1968 said:

HMRC will be aware how much State Pension you receive, your tax allowance means you should not pay tax on it albeit I don’t know where you stand if you live in Thailand permanently.

 Only the first  £12570 lower tax threshold  is tax free . If your income including  your pension exceeds that you will pay tax . I have been paying tax on my investments and with the pension HMRC quickly increased my tax payment and gave me an X code grrr.

[Jumbo1968]

3 minutes ago, Dogbarker said:

 Only the first  £12570 lower tax threshold  is tax free . If your income including  your pension exceeds that you will pay tax . I have been paying tax on my investments and with the pension HMRC quickly increased my tax payment and gave me an X code grrr.

If you only received the State Pension with no other investments you wouldn’t pay tax on it, there will be a 10% increase this year due to the triple lock, unfortunately that decreases the amount left on your personal allowance meaning you wil pay more tax on you investments.

[billd766]

It will depend on your total annual income,

 

https://www.bbc.com/news/explainers-63635185

 

 

You should pay no income tax on your state pension provided that it does not exceed the £12,500 threshold. The difference between the two is applied to any other income you may earn.

 

Between the £12,500 and £50,271 you will be taxed at 20% etc.

 

Edited January 24, 2023 by billd766
added punctuation marks

[Jumbo1968]

13 minutes ago, billd766 said:

It will depend on your total annual income,

 

https://www.bbc.com/news/explainers-63635185

 

 

You should pay no income tax on your state pension provided that it does not exceed the 12,500 threshold. The difference between the two is applied to any other income you may earn.

 

Between the 12,500 and 50,271 you will be taxed at 20% etc.

 

No one receives more State Pension than their tax allowance, the U.K. State Pension is that poor. the equivalent of around £4/5 an hour.

[billd766]

11 minutes ago, Jumbo1968 said:

No one receives more State Pension than their tax allowance, the U.K. State Pension is that poor. the equivalent of around £4/5 an hour.

I have no real idea as my state pension was frozen at the 2009 rate as I live in Thailand'

 

Having said that, then this....

 

https://www.ageuk.org.uk/information-advice/money-legal/pensions/state-pension/new-state-pension/#:~:text=The full rate of the,paper statement if you prefer.

 

 

How much State Pension will I get?
The full rate of the new State Pension will be £185.15 per week (in 2022/23) but what you will get could be more or less, depending on your National Insurance (NI) record.

You can check how much State Pension you could get on the government website or, you can request a paper statement if you prefer.

 

That comes to around £9,627.80 for 52 weeks of payment currently.

 

 

 

Edited January 24, 2023 by billd766

[nigelforbes]

Great answers guys thanks, but ya'll need to go back and read the question again!

[Jumbo1968]

5 minutes ago, nigelforbes said:

Great answers guys thanks, but ya'll need to go back and read the question again!

I do my tax online, HMRC are aware how much my State Pension is and how much my private pensions are, I don’t have to inform HMRC, they issue a tax statement informing me how much tax the private pension company has to deduct from my private pension. 
If I have any additional investments I have to inform them by completing a tax return.

[Dazkkk]

40 minutes ago, billd766 said:

I have no real idea as my state pension was frozen at the 2009 rate as I live in Thailand'

 

Having said that, then this....

 

https://www.ageuk.org.uk/information-advice/money-legal/pensions/state-pension/new-state-pension/#:~:text=The full rate of the,paper statement if you prefer.

 

 

How much State Pension will I get?
The full rate of the new State Pension will be £185.15 per week (in 2022/23) but what you will get could be more or less, depending on your National Insurance (NI) record.

You can check how much State Pension you could get on the government website or, you can request a paper statement if you prefer.

 

That comes to around £9,627.80 for 52 weeks of payment currently.

 

 

 

I get £240.49 UK State Pension every week, that comes to £12,505. Due a “pay rise” in April of 10%. ????

Edited January 24, 2023 by Dazkkk

[nigelforbes]

Just now, Jumbo1968 said:

I do my tax online, HMRC are aware how much my State Pension is and how much my private pensions are, I don’t have to inform HMRC, they issue a tax statement informing me how much tax the private pension company has to deduct from my private pension. 
If I have any additional investments I have to inform them by completing a tax return.

Thank you for your efforts but it seems you don't know either.

 

Let me repeat the question, slightly differently, just in case somebody else does know:

 

I receive my UK State pension every month, it is paid directly into my bank in Thailand, in Thai Baht, minus any bank charges. I do not know how much they send although I can calculate this approximately but this is not good enough for a tax return. I must file a tax return because I have other UK and non-UK income that I have to report but I cannot do this using online self assessment because I am not UK tax resident. Should I report the THB actually received, converted to GBP using HMRC conversion rates or will HMRC notify me of the amount they have paid me (US SSc does the latter).

 

 

[transam]

3 minutes ago, nigelforbes said:

Thank you for your efforts but it seems you don't know either.

 

Let me repeat the question, slightly differently, just in case somebody else does know:

 

I receive my UK State pension every month, it is paid directly into my bank in Thailand, in Thai Baht, minus any bank charges. I do not know how much they send although I can calculate this approximately but this is not good enough for a tax return. I must file a tax return because I have other UK and non-UK income that I have to report but I cannot do this using online self assessment because I am not UK tax resident. Should I report the THB actually received, converted to GBP using HMRC conversion rates or will HMRC notify me of the amount they have paid me (US SSc does the latter).

 

 

I believe your state pension is paid to Citibank Ireland, it is passed on to Citibank Thailand, where they convert it to baht and pass it on to your Thai bank...

[Flyfish]

I might be mistaken but…..I believe that despite the government knowing how much state pension I receive, the tax return always asks you to record the amount on your tax return. Strange but there it is? 
I am always baffled as to why they ask when they automatically fill in the retired company pension amounts automatically. 

[Jumbo1968]

2 minutes ago, Flyfish said:

I might be mistaken but…..I believe that despite the government knowing how much state pension I receive, the tax return always asks you to record the amount on your tax return. Strange but there it is? 
I am always baffled as to why they ask when they automatically fill in the retired company pension amounts automatically. 

Because you probably submitted your PP details when you cashed it in or the Pension company informed HMRC.

[nigelforbes]

6 minutes ago, transam said:

I believe your state pension is paid to Citibank Ireland, it is passed on to Citibank Thailand, where they convert it to baht and pass it on to your Thai bank...

Yes I agree, so logically, HMRC doesn't know how much I recieved, only how much they paid to Citibank. Cool, that's my answer....thanks, all done.

[bradiston]

12 minutes ago, nigelforbes said:

Thank you for your efforts but it seems you don't know either.

 

Let me repeat the question, slightly differently, just in case somebody else does know:

 

I receive my UK State pension every month, it is paid directly into my bank in Thailand, in Thai Baht, minus any bank charges. I do not know how much they send although I can calculate this approximately but this is not good enough for a tax return. I must file a tax return because I have other UK and non-UK income that I have to report but I cannot do this using online self assessment because I am not UK tax resident. Should I report the THB actually received, converted to GBP using HMRC conversion rates or will HMRC notify me of the amount they have paid me (US SSc does the latter).

 

 

You have to declare the gross amount. I suggest you contact the pensions helpline in the UK 0800 731 0469 (last time I checked) to find out what that is, or how to find it online (I couldn't). I calculate mine by adding up the monthly payments into my UK bank account. I move the £s from there on an occasional basis to my Wise account here, free of charge, and deposit into my Thai/Philippines bank whenever the exchange rate looks advantageous. I wouldn't pay into a foreign bank from the DWP.

[Rimmer]

Closed per OP request