UK pensions

[evadgib]

Links of interest:

1. Residency:

http://www.hmrc.gov.uk/international/residence.htm#5

2. Child Benefit/Protecting Pension:

http://www.hmrc.gov.uk/childbenefit/start/claiming/protect-pension.htm

Edited August 6, 2013 by evadgib

[nong38]

There has been an article in the Independent recently with an important statement by Lord Goddard QC I would ask you to take a look, go to the Idependent, then to money, then to pensions.

http://www.independent.co.uk/money/pensions/expats-call-for-fairer-pension-payouts-8659717.html

Edited September 10, 2013 by Lite Beer
Link Added

[nong38]

Bill you read some evil books, buy yourself an Atlas, you might be able to get it under the counter in Thailand.

Now I have just sent off my letter to Sir Peter Bottonley, how about you, how are you going?

[Lite Beer]

The full single-tier State Pension will be based on 35 years National Insurance (NI) contributions or credits.

http://www.ageuk.org.uk/money-matters/pensions/what-the-new-state-pension-reforms-mean-for-you/

[nong38]

Complicated, have a look here.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

Leaves gaps to be answered and no mention of " if you go abroad you may not get the annual increases as mentioned with the triple lock system" there is a hidden key somewhere that will wreck people's retirement forecast.

[evadgib]

Pensions analysis

[theoldgit]

It doesn't need to be done by Embassy staff, any qualified person can do it.

Declaration of existence

It is no longer required for you to have your declaration of existence witnesses by a Consular Officer. Certificates can be singed (sic - I think they meant signed) by the same person who can countersign passport photos

https://www.gov.uk/countersigning-passport-applications (/quote]

[evadgib]

It's here:

https://www.gov.uk/browse/working/state-pension

[Tafia]

The International Consortium of British Pensioners (ICBP)

Great coverage from the Telegraph: this will appear in the print edition tomorrow 1/3/14...and at last there is a photo of a real frozen pensioner.

http://www.telegraph.co.uk/finance/personalfinance/pensions/10665839/Frozen-pensions-force-expats-to-come-home.html

Edited February 28, 2014 by Tafia

[Rajab Al Zarahni]

Here is a quote attributed to the pensions minister when he was in opposition:

Steve Webb. 18 March 2004. Pension bill debate. Hansard,

"The moral claim rests on the fact that we have a contributory pension system. We ask people to make contributions all their life to accrue an entitlement. Why should that accrued entitlement vary according to where they choose to live? That does not sit well with the idea of a contributory system."

I PROMISE TO TELL THE TRUTH,THE WHOLE TRUTH AND NOTHING BUT THE TRUTH !

[Rajab Al Zarahni]

Detailed below are his contact details for those who want to help jog his memory with a helpful letter:

Steve Webb MP
Poole Court
Poole Court Drive
Yate
Bristol, BS37 5P

Phone: 01454 322 100
Fax: 01454 866 515

[evadgib]

These may be of interest too:

Public service pension reform nears conclusion

Public sector pay awards for 2014-15

[evadgib]

Chancellor George Osborne's Budget 2014 speech Budget 2014: support for savers announced Budget 2014: Key announcements

[evadgib]

Pensions strategy

[evadgib]

Published 08 Apr 14

New measures to protect the integrity of the benefits system

[Guest jonzboy]

I believe Chiang Mai should take a read of this on the subject of residence for tax purposes...

http://www.hmrc.gov.uk/international/rdr3.pdf

It seems geared towards the obvious customer trying to prove they are not resident for tax purposes rather than your suggested strategy. However, I suspect that HMRC will "use the rules" to favour the best financial outcome "for themselves"

[chiang mai]

https://www.gov.uk/calculate-state-pension

[Expattaff1308]

Join Today

http://pensionjustice.org/

[evadgib]

Queen’s Speech 2014: what it means for you

[Basil B]

Re: the proposed collective pension scheme.

I have tried to put my head round this and understand the basics but feel it is something for the younger generations as I doubt you could top it up with a lump sum, so with only less than 7 years to go it ain't going to be of much benefit to me.

Hopefully with more options it will be a kick up the backside to the current schemes run by under preforming fat cats.

http://www.bbc.co.uk/news/business-27665364

[evadgib]

Claim your State Pension online

HTH

[sandyf]

How your UK State Pension is made up

Basic State Pension

This is based on all National Insurance contributions paid or credited to your

account.

Additional State Pension or State Earnings Related pension (SERPS)

This is the part of your pension that was dependant on your earnings. The

SERPS scheme ran from 6 April 1978 to 5 April 2002 with a revision from 6 April

1997. From 6 April 2002 the State Earnings Related Pension Scheme was

reformed by the State Second Pension to give a more generous additional State

Pension for low and moderate earners, some carers and the long-term ill or

disabled who have had, but lost, their links with the labour market.

Additional State Pension

Based on any earnings you may have made during the dates the scheme ran (6

April 1978 to 5 April 1997). This is £000.00 but Contracted Out Deductions (COD)

of £0.00 have to be taken away as you have been in an employer's or a personal

pension scheme from 6 April 1978 to 5 April 1997.

Additional State Pension

Based on any earnings from 6 April 1997 to the date the scheme ended. which

are not subject to COD

Additional State Pension or State Second pension

Based on any earnings, caring or incapacity from 6 April 2002

Graduated Retirement Benefit

Based on contributions paid to the Graduated Retirement Benefit scheme, which

ran from 6 April 1961 to 5 April 1975, and any increases for putting off getting

your Graduated Retirement Benefit or delay in making a claim

[Jip99]

Here is a link to the Department of Health's response to the proposal:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/268630/Sustaining_services__ensuring_fairness_-_Government_response_to_consultation.pdf

60 pages is a lot to wade through. Key points are:-

98.

Currently many, but not all, expatriates are chargeable for healthcare when returning to the

UK to visit and they are immediately exempt if they resume permanent residence.

The consultation responses acknowledged that current rules are poorly understood and difficult to enforce.

Responses broadly supported the idea that those with a previous long-term relationship with the country should be able to continue to access free NHS care when they are here. However others argue that full exemption (that could have significant potential cost implications) should be

limited to those who have left the UK more recently or who have previously worked for the majority of their life here.

99.

The Government supports the principle of those who have previously made a fair contribution continuing to be entitled to free NHS treatment and this should be consistent with the principles of ex-pat eligibility for UK pensions and other state benefits. We will therefore undertake further analysis and financial appraisal before confirming the details of any proposed new eligibility rules. We anticipate that these would come into force later in 2014 at the same time as other changes are made to introduce the new migrant health surcharge.

[topt]

Being Non Resident and Not Ordinarily Resident does not exempt you from

tax on income arising in the UK.

e.g. The OAP

Private Pensions etc

Yes, there is still a liability for tax but exemption can be claimed if you meet the Not Ordinarily Resident requirements.

Can you provide an authoritative link which would confirm this ?

I would doubt it as - http://www.hmrc.gov.uk/international/remittance.htm

"Before 6 April 2013, you could also choose to be taxed on the remittance basis if you had foreign income and you were resident but not ordinarily resident in the UK. However, from that date the concept of ordinary residence has largely been abolished for tax purposes."

Here is a quote from the RDR1 which apparently sort of replaces HMRC6 from that date. Note it says "most pensions" which means some are exempt?

"Pensions

6.21 When you are not UK resident you are liable to UK tax on most pensions

from sources in the UK. You will not pay UK tax on pensions from sources

outside the UK."

Apologies if it has already been posted but I have attached the copy of RDR1 for those that may not have seen it.rdr1 replaces HMRC6.pdf

[Guest jonzboy]

I know I am not alone in being short of the 35 years of NI contributions to qualify for the full single tier pension for those retiring from April 2016.

I wrote to HMRC on the day that the new Pensions Act received Royal assent requesting to recommence paying voluntary Class 3 contributions because I stopped in 2007 when reaching the 30 year maximum at that time.

I just got a reply stating that my application has been processed and they start taking monthly payments by direct debit next month.

The letter also includes details of how to buy back missing years. I have a table of costs to buy back any of the past seven years of my missing payments, with deadlines for payment. I am able to buy back any of these years at the stated amount by 5 April 2019, but there is provision for an extension to this date for all the years until 5 April 2023 although it states that the amount payable may increase. Some of the missing years are payable at only £12.05 per week instead of the current £13.90. It seems to make sense to save and pay off these missing years before the 2019 deadline rather than paying for future years.

[Guest jonzboy]

Did you email them? If so please post the address as i'm in the same boat & had been told to do nothing until 2016.

I wrote a letter and sent original direct debit instructions. As far as I am aware they discourage email communication and do not include email addresses on any correspondence I have seen.

HM Revenue & Customs

NIC & EO

International Caseworker

Benton Park View

Newcastle-upon-Tyne

NE98 1ZZ

ENGLAND

[evadgib]

Published this morning:

"Pensions Minister Steve Webb to continue with plans to overhaul the private pensions market".

Public backing means full steam ahead for pension reforms

Edited June 26, 2014 by evadgib

[Old Guy]

A few wekks ago I opened a discussion on the British Government's intention to look at the possibility of abolishing Income Tax Personal Allowances for Britons living abroad, except for certain favoured individuals. In most cases it is the pensioner who will suffer.

Hoever, since writing that and whilst mulling on it, I recalled a letter I received a short while ago from the Inland Revenue suggesting that, as a resident of Thailand, I might like to consider paying Thai tax instead of the U.K. as the two countries have a reciprocal agreement. (I wonder if they had foreknowledge of the Government proposals ?!). At the time I replied that it would be to my advantage to stay with the U.K. system as things then stood.

However the position will change if this horrendous new proposal goes through. I have done a rough estimate of the figures for myself and find that my tax would increase from the current 1,900 pounds p.a. to 4,000 p.a., or even to 4,800 p.a. if the marriage allowance is included in the abolition. Paying Thai tax would be 3,700 p.a. (conversion at 55 to the pound). Other expats here might want to consider this alternative.

Earlier I wrote to Hilary Benn (my M.P. if forced to return to the U.K.) and he has had a reply to my original comments from Chancellor George Osborne who has not contributed much to the discussion other than to ask Mr. Benn to inform me that every decision as to which few favoured individuals will still enjoy Personal Allowances will be open and above board.

Might be worth while for some of you to do a few sums.

[chiang mai]

My desire to live part of each year in the UK has nothing to do with the NHS, you assume too much and incorrectly also.

But let's assume for a moment that was the case, at age 65 having paid NI for 35 years and being in receipt of state pension,I am entitled to use it, or do you see the world differently to government and the rest of the country? And I certainly didn't mention that I was taking a family with me, do you know something I don't?

As for pension increases, I suppose that is a bi-product of what I'm doing but it certainly isn't a motivator, ask yourself, would somebody really reorganize their life so dramatically for the sake of an additional two Pounds a week, I really don't think so!

But the bigger question resulting from your post is where you're coming from, you're anti something, older people perhaps or people who have become financially successful and retired early. Given that I have generated and paid more UK tax revenue in my lifetime than most people I don't see how the scrounger angle applies, dunno, tell us more perhaps, get it off your chest, you'll feel better for it and we need to be entertained!

Edited June 29, 2014 by CharlieH

[ppmacready]

Did you know from April,

Ex pats will also be liable to pay Capital gains tax on selling propertys.