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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13885
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have just taken retirement from the company I worked for

Customer Question

I have just taken retirement from the company I worked for in the uk and receive 26,000 per annum, I also work for a Russian oil company in Iraq spending 28 days in iRAQ AND THEN 28 DAYS IN THE uk and would like to know what my tax liability is.
Submitted: 4 years ago.
Category: Tax
Expert:  Sam replied 4 years ago.

Hi

 

Thanks for your question

 

Can you expand with further information please?

Did you work with the UK company and the Russian Oil company, or did one start after another. Please provide dates.

Did you receive a lump sum retirement pension from the UK company - how much was it, and how was the figure made up. Will this result in an annual pension.

What age are you.

 

Thanks

 

Sam

Customer: replied 4 years ago.


I worked for a UK company for 26 years and retired from the UK company on 23rd April 2013 and started to work for the Russian company on 24th April 2013.


I i received a tax free lump sum from the pension provider and a yearly pension of 26000 pounds paid monthly.


I am 62 years old.

Expert:  Sam replied 4 years ago.

Hi

 

Thanks for your response and clarifying the position.

 

Then your tax liability will be your annual pension plus the income from the Russian oil rig, ( less the personal allowances and the remaining liable to tax, at the appropriate rates)

The reason for this is because you will be treated as remaining resident in the UK as you will not actually be leaving the UK to take up permanent employment and life abroad but merely working out of the UK, on a rotational basis, and as you will spend more than 90 days a year in the UK, as things stand, then you will remain resident for UK tax purposes.

 

You should advise HMRC of this work abroad, so they can arrange to issue you with a self assessment tax return after each year end, and on this you can declare your pension, the Russian income and any foreign tax suffered (so you do not suffer double taxation on the same income)

 

They will then advise you what tax is due, which is then paid by the following 31st Jan, following the tax year end.

For example, first tax return will be issued after 05/04/2014, and this return needs to be back with HMRC by 31st Oct 2014 if filling in a paper copy, or by 31st Jan 2015 if filing online. Then any tax due has to be paid no later than 31st Jan 2015.

 

Feel free to ask any follow up questions, but if you could rate the level of service I have provided, it would be appreciated, as this ensures I am paid.


Thanks


Sam

 

 

 

 

 

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