Unexplained tax refund 27 July 2022 at 4:10PM in Cutting tax 8 replies 183 views

retiredinfrance

I ama retired teacher with a Northern Ireland teachers pension. I live and am taxed in France. I understood that my Uk pension was taxed at Uk source and has been . Last year 29-21 I was refunded the tax and despite me writing to HMRC to explain , they have again refunded the 21-22 tax. Can anyone help as I’ve been waiting six months for a reply from HMRC. Thanks

Jeremy535897

Do you pay French tax on your pension? Have you retained your UK nationality?

See Articles 18 and 19(2) of the UK-France double tax agreement:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/496672/france_dtc_-_in_force.pdf

retiredinfrance

I will look that up. We are credited with Uk tax paid under the double tax agreement. We have British nationality . We are French tax residents and pay French tax on all other income- state pension. savings interest. Thanks for helping. Btw tax is taken off at source every month . 

retiredinfrance

I have read the relevant sections and it seems to me that I should be paying tax to the UK on this pension and that HMRC seem to be refunding me in error. 
I will write to them again and await a reply.
Thanks .

Dazed_and_C0nfused

Maybe they have this recorded on your tax record by mistake meaning all the tax is getting refunded in error?

https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye64040

retiredinfrance

Thanks, I appreciate this link. I am reasonably sure that this is an error. I’m still waiting waiting for the reply to sort last year’s error, but I will write in about this new one. They used to overtax me in error regularly, so this is a change.
Thanks again

sheramber

As there has been delay in answering you you could make a complaint

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/complain-about-hmrc

Jeremy535897

I think you are right, as article 19(2) states that the UK has the sole taxing rights where you are a UK national. Presumably the tax deducted reflects the personal allowance available.

retiredinfrance

Thanks, Sheramber and Jeremy. I will make a complaint at the same time as I notify them. Every time I write it costs about 5 pounds as I send all such letters recorded delivery- just in case!Jeremy, yes, you are correct. Thanks again.