We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
When would I need to submit a tax return?
Brie
Posts: 12,417 Ambassador
in Cutting tax
Never done a tax return in the UK. Where I used to live, yes, as there was no easy PAYG system.
So now that life is getting a bit more complicated how do I know if I need to submit a return?
I have a salary from a part time job, monthly income from a DB scheme, about to have SP kick into payment, looking at what I'll do potentially with some DC funds (buying an annuity is likely). I think that all of those are pretty normal.
But I also have what is essentially a SP from another country. I suspect that tax will be payable there - except it won't because I don't get very much paid to me. But will have to submit a tax return there (I think, not sure). But if I don't pay tax there and I do pay tax here do I have to submit something about this foreign income? I mean, how would the UK government even know about it unless I told them (or they're spying on me......)
So now that life is getting a bit more complicated how do I know if I need to submit a return?
I have a salary from a part time job, monthly income from a DB scheme, about to have SP kick into payment, looking at what I'll do potentially with some DC funds (buying an annuity is likely). I think that all of those are pretty normal.
But I also have what is essentially a SP from another country. I suspect that tax will be payable there - except it won't because I don't get very much paid to me. But will have to submit a tax return there (I think, not sure). But if I don't pay tax there and I do pay tax here do I have to submit something about this foreign income? I mean, how would the UK government even know about it unless I told them (or they're spying on me......)
I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
0
Comments
-
Brie said:I mean, how would the UK government even know about it unless I told them (or they're spying on me......)
I think the reasoning for that question is so that DWP can identify if you are possibly eligible for a foreign pension and if so to liaise with their counterparts in those countries...
0 -
p00hsticks said:Brie said:I mean, how would the UK government even know about it unless I told them (or they're spying on me......)
I think the reasoning for that question is so that DWP can identify if you are possibly eligible for a foreign pension and if so to liaise with their counterparts in those countries...I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
With regard to where you will pay tax on the overseas state pension, this is usually defined in a Double Tax Agreement (DTA) between the two countries. Generally, but not always, if you are UK resident you will pay tax in the UK, but you will receive a credit for any tax you had to pay in the other country.
You usually need to fill in a Self Assessment form if you’re a UK resident with foreign income. You should be aware that there is a lot of information exchanged between countries, so it’s a risk to assume that HMRC won’t know about your overseas income.
1 -
KathysBoy said:With regard to where you will pay tax on the overseas state pension, this is usually defined in a Double Tax Agreement (DTA) between the two countries. Generally, but not always, if you are UK resident you will pay tax in the UK, but you will receive a credit for any tax you had to pay in the other country.
You usually need to fill in a Self Assessment form if you’re a UK resident with foreign income. You should be aware that there is a lot of information exchanged between countries, so it’s a risk to assume that HMRC won’t know about your overseas income.
I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
Brie said:KathysBoy said:With regard to where you will pay tax on the overseas state pension, this is usually defined in a Double Tax Agreement (DTA) between the two countries. Generally, but not always, if you are UK resident you will pay tax in the UK, but you will receive a credit for any tax you had to pay in the other country.
You usually need to fill in a Self Assessment form if you’re a UK resident with foreign income. You should be aware that there is a lot of information exchanged between countries, so it’s a risk to assume that HMRC won’t know about your overseas income.0 -
Another question for you......how do I know what amount to put on a tax return? My pension that is being paid is not in ££. So do I take the set monthly amount I'm getting, translate that once into ££ and then just give them that? Or do I wait to 5 April and use the FX rate at that date? Or use the FX rate when I move the money to the UK? (I've yet to get my bank to allow that to happen....but that's another boring story)I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
All entries on a self assessment tax return must be in pounds sterling.
To convert from a foreign currency to pounds sterling, please use the official rate of exchange at the time of the exchange.
You are free to use the yearly rate, the monthly rate or the spot rate.
If a conversion was undertaken to deposit the money into a UK bank account, then this figure can be used.
1 -
I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
1
-
[Deleted User] said:Historic rates here:I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0
Categories
- All Categories
- 346.6K Banking & Borrowing
- 251.4K Reduce Debt & Boost Income
- 451.4K Spending & Discounts
- 238.8K Work, Benefits & Business
- 614.3K Mortgages, Homes & Bills
- 174.8K Life & Family
- 252K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards