UK company final salary pension...

[ketherin]

Hi all..

Could someone please help me out.

I'm a 58 year old male from the UK.

Worked all my life for one company currently receiving a final salary pension.

Took an early retirement pension.

And this is my 3rd year in Thailand.

Currently paying 40% tax on this pension.

Go back home twice a year for approx 60 or 70 days a year.

What I'm wondering is can I declare myself as living abroad and not pay tax on my company pension.

I understand that this would make me ineligible for any NHS treatment.

Could someone give me some pointers if this is a good idea / feasible.. Or a big No No

Thank you for your help.

[Ronuk]

It is classed as a UK based income so unfortunately, you will need to be paying UK based Income Tax. Tell them nothing and keep smiling because they could stop your NHS treatments although there are different criteria's before they can stop it.
If only we could ditch that 40% Income Tax

[johnatong]

You must have a big fat pension if paying 40% tax !

Unfortunately all income arising from within the UK is taxable. I doubt there is much if anything you can do about it.

You should also check on what you believe to be an on-going entitlement to NHS care/treatment.

[GuestHouse]

Ketherin,

as you have been advised above, you can't escape the tax liability once you are drawing your pension from the UK.

You perhaps need to look at the basis of the tax calculation, make sure you have the correct tax code and that your pension provider has been informed of this code.

On the upside, a 40% tax liability suggests you have a very good pension that will keep you well in Thailand.

Think of the poor s0d's who transferred their company pensions into QROPS and have been robbed blind and left pennyless in their old age,

[theoldgit]

To put things into perspective you won't be paying 40% on all your pension will you, only on that which is above the above £43,000 threshold?

As you will probably be aware the first £11,000 is tax free as your personal allowance, the next £32,000 will "only" be taxed at 20%, and you will only pay 40% on any pension above that £43,000 figure - until your earning hit £150,000, then you will pay 45%.

If you make any charitable donations in the UK you can offset these against you higher rate tax liability.

[Familyonthemove]

Ketherin,

as you have been advised above, you can't escape the tax liability once you are drawing your pension from the UK.

You perhaps need to look at the basis of the tax calculation, make sure you have the correct tax code and that your pension provider has been informed of this code.

On the upside, a 40% tax liability suggests you have a very good pension that will keep you well in Thailand.

Think of the poor s0d's who transferred their company pensions into QROPS and have been robbed blind and left pennyless in their old age,

Are you referring to the high cost of managing QROPS as compared to UK based schemes, or are you aware of other issues, or is this just scare mongering?

I had thought that if you were not considering going back to the UK, then a QROPS in one of the HMG approved countries was an option, although set up and management costs can be an issue?

But leaving funds in a final salary scheme can also be a risk these days with over subscribed pensions. It's an area I need to plan so I'm interested in the options.

[ketherin]

Hi Everyone

Thank you for your help

As I suspected I've gotta pay income tax on my pension.

And yes I'm aware that I'm fortunate to have a good pension, one of the reasons I stayed at the same company for 36 years!

Also aware that I've gotta be careful regarding the NHS I go home twice a year and always go to see my GP, also still have my property so paying Council tax etc.

But again thank you for the replies.

[GuestHouse]

Ketherin,

as you have been advised above, you can't escape the tax liability once you are drawing your pension from the UK.

You perhaps need to look at the basis of the tax calculation, make sure you have the correct tax code and that your pension provider has been informed of this code.

On the upside, a 40% tax liability suggests you have a very good pension that will keep you well in Thailand.

Think of the poor s0d's who transferred their company pensions into QROPS and have been robbed blind and left pennyless in their old age,

Are you referring to the high cost of managing QROPS as compared to UK based schemes, or are you aware of other issues, or is this just scare mongering?

I had thought that if you were not considering going back to the UK, then a QROPS in one of the HMG approved countries was an option, although set up and management costs can be an issue?

But leaving funds in a final salary scheme can also be a risk these days with over subscribed pensions. It's an area I need to plan so I'm interested in the options.

Before you make any contact with any QROPS salemen or providers spend a great deal of time on tour own research.

If you are using the services of a Thailand based adisor then you really need to be aware of the very high risks you are taking.

If you are not already aware of these risks you have not done enogh research.

[partington]

Hi Everyone

Thank you for your help

As I suspected I've gotta pay income tax on my pension.

And yes I'm aware that I'm fortunate to have a good pension, one of the reasons I stayed at the same company for 36 years!

Also aware that I've gotta be careful regarding the NHS I go home twice a year and always go to see my GP, also still have my property so paying Council tax etc.

But again thank you for the replies.

Be aware that the things that you think may entitle you to NHS treatment actually don't (this refers to hospitals-GP visits are still free for everyone, although I can see this being abandoned very soon).

In short you have to be a long term permanent resident in the UK to be entitled. So of course don't ever declare you're not living there permanently. Owning property, paying council tax, or even paying NI contributions doesn't give you entitlement-simply living in the UK does.

In the Queen's speech a few days ago the Tories declared that they would bring in measures to tighten up on the checkups on patients' residence status, to make sure of eligibility.

See the NHS website : http://www.nhs.uk/NH...om-the-eea.aspx

"The NHS operates a residence-based healthcare system and not every person is entitled to free NHS treatment in England. Provision of free NHS treatment is on the basis of being ordinarily resident and is not dependent upon nationality, payment of UK taxes, national insurance (NI) contributions, being registered with a GP, having an NHS number or owning property in the UK. Ordinarily resident means, broadly speaking, living in the UK on a lawful and properly settled basis for the time being.

If you are not ordinarily resident in the UK, you are considered to be an overseas visitor and may be charged for NHS hospital services. It is strongly recommended that you take out sufficient health insurance to cover your stay."

Edited May 21, 2016 by partington