Netherlands state pension

Aldi1234

I've always enjoyed the convenience of being on PAYE, my finances being fairly uncomplicated having always been an employee. I receive a company pension and a state pension.

As I worked and paid tax in the Netherlands many years ago for 4 years I've now been awarded a small Netherlands state pension (79 euros per month in fact). Does this mean I'll have to 'give up' my PAYE status and register to complete an annual tax return?

If so, I almost feel like asking them not to pay it as it's hardly worth complicating my life, (particularly if I have to get an accountant to do it on my behalf!)

I notice that there's a option on my Gov.uk PAYE account to 'add' a pension, can it not be included here?

Brie

Following to see what answers are given on this as I've been told I will need to submit a tax return for my Canadian pension.  It's not quite as tiddly as yours but is low enough that I wouldn't have to pay any tax if I was in Canada and it was my only income.  (but I'm not and it's isn't...)

Must admit this is the first time I've heard of giving up my PAYE status - I didn't know that that was a thing!!

xylophone

Does this mean I'll have to 'give up' my PAYE status and register to complete an annual tax return?

Completing a tax return does not mean giving up PAYE status?

You can complete SA online- relative had resisted this for years in favour of paper return but has finally yielded - he says he found it quite painless in the end.

https://community.hmrc.gov.uk/customerforums/pt/4e17081c-e9f0-ed11-913b-00155d9c6b71

https://www.litrg.org.uk/tax-guides/migrants/what-uk-tax-do-i-pay-my-overseas-pension

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

Brie

@xylophone
Thanks for those links - they are incredibly helpful.  

pinnks

As you receive foreign income you must complete a tax return (receipt of foreign income is one of the criteria that means you must complete a return) but you will not need an accountant.  As others have said, you can do this online and from my experience (I get a foreign pension) it will take you less than an hour to complete and submit.

You must inform HMRC that you have this new source of income and they will set you up on SA and send you an annual notice to file a return.  You then have from 6 April to 31 January to complete the return.  You will run through the questionnaire to make sure you get only the pages you need (the main form, the employment pages and the foreign income pages).  You will enter the information from your P60 (income and tax deducted), your bank etc interest and then on the foreign page, your NL pension.  And that's it!

By the way, you might also want to consider keeping the NL pension in € by having it paid into a Starling Bank account - just a thought 

eastcorkram

pinnks said:

As you receive foreign income you must complete a tax return (receipt of foreign income is one of the criteria that means you must complete a return) but you will not need an accountant.  As others have said, you can do this online and from my experience (I get a foreign pension) it will take you less than an hour to complete and submit.

You must inform HMRC that you have this new source of income and they will set you up on SA and send you an annual notice to file a return.  You then have from 6 April to 31 January to complete the return.  You will run through the questionnaire to make sure you get only the pages you need (the main form, the employment pages and the foreign income pages).  You will enter the information from your P60 (income and tax deducted), your bank etc interest and then on the foreign page, your NL pension.  And that's it!

By the way, you might also want to consider keeping the NL pension in € by having it paid into a Starling Bank account - just a thought 

I hadn't realised I'd have to do this  
I'll be in receipt of a pension in Euro . I thought I could just log in to the online account and inform them once it started payment. Though I wasn't sure whether I'm supposed to tell them the euro amount or the sterling equivalent. I'd presume the sterling, but that's going to vary a bit. 

pinnks

Have a read of Tell HMRC about a change to your personal details: Income changes - GOV.UK (www.gov.uk).  It doesn't specifically mention foreign income but the same rules apply.

HMRC publicises official exchange rates.  As far as I can tell, you are free to use monthly or yearly rates, though I assume HMRC would want you to be consistent, year on year...

Have a look at Average for the year exchange rate for Self Assement - Community Forum - GOV.UK (hmrc.gov.uk) and perhaps register on the forum and pose your own question if you cannot find a definitive answer...

Aldi1234

Many thanks for all your comments (particularly pinnks, very helpful).