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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am an irish resident pensioner aged 66 planning to live in

Resolved Question:

I am an irish resident pensioner aged 66 planning to live in the UK with my wife aged 65.

Our income (all pension based, occupational and state ) is approx. €96k or £80k pa.

In the Daily Telegraph last Thursday, Grant Thornton, following this weeks UK budget our after tax income would be approx £65,990 net from a gross figure of £80 k taxable.

When using a UK Tax Calculator website our income is significantly less than that quoted by GT. Can you explain the reason for the discrepancy.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Can you point me to a website page for the Daily Telegraph where your figures come from please. Would you also let me know the split of the total of £80,000 between you and your wife please. Are you UK or Irish nationals?
Customer: replied 3 years ago.
As I do not hve your email address I cannot photo copy Telegraph article to you.
We are Irish domicile but worked in the seventies in England and have small partial uk pensions included in our overall pension income
Customer: replied 3 years ago.
Both Irish citizens with Irish domicile.
My pension occupational is €68,000
State pension is € 20,000
My uk state pension is about €2,400
Wife's uk state pension is about €2,500

Telegraph article published on March 20 th using figures from Grant Thornton
Expert:  TonyTax replied 3 years ago.
Thanks.

Without acess to the Daily Telegraph article which I have looked for online I cannot comment on the apparent difference but I can tell you what I think you will pay in UK tax in 2014/15 if you wish me to carry on. If you do want me to given you an answer, I need to know if any of the pensions are derived from "government service" jobs (Irish or UK) such as the civil service or the military and in some cases teaching let me know how much?
Customer: replied 3 years ago.
Nothing from government.
Retired banker occupational pension.
Wife worked for three years as a student nurse in Northern Ireland and lived as my wife for six years in uk. Her small pension is an OAP.

I would intend to avail of the 90% scheme for uk non doms thus my gross for tax purposes should be approx. £72,000 with £8,000 in taxable.

If you give me an email Address I think I can take a photo of GT info and send it to you directly. I will understand if you do not wish to do so. Likewise, if you are only going to give me info that I can get from Uk Tax Calculator web site there is not much sense in continuing.
Regards
Dermot
Expert:  TonyTax replied 3 years ago.
If you could scan the page you can attach it to your message or you could copy it and send it to just answer in an email and they will forward it to me. I'm not allowed to give out my email address unfortunately.
Customer: replied 3 years ago.
Going to my daughters home to see if she can scan telegraph article to you .

May take some time before I revert to you.

Dermot
Expert:  TonyTax replied 3 years ago.
OK. I'll keep on searching for it online too.
Customer: replied 3 years ago.
Just sent photo of GT publication post budget. Sent to just answer.co.uk
Expert:  TonyTax replied 3 years ago.
Did you refer to this question so they can send it to me?
Customer: replied 3 years ago.
I asked that they send photos to tony tax
Expert:  TonyTax replied 3 years ago.
That should do it. Thanks.
Customer: replied 3 years ago.
Tony, I note that I have been charged €26.00 but I have yet had no answer to my question.
I thought that unless I was happy with the answer received no charge applied. Feel a bit turned over to say the least !.

Dermot
Expert:  TonyTax replied 3 years ago.
Just Answer take a deposit which is entirely refundable at any stage until you indicate that you are happy with the answer. I won't get paid until that happens. Your money is completely safe.

I've never asked a question here so I really don't know what a customer sees when they sign up. My understanding is that there is no obligation to pay a deposit, at least there never used to be.
Customer: replied 3 years ago.
Thanks for same.
I always felt a little apprehensive in using this service and whilst I expect nobody to work for nothing to date you have been unable to address my question.
I hope you get my photos. I also searched web for GT report without success. If you look at DT on March 20 th under budget search for article by Richard Dyson who used the GT figures as part of his article.
Expert:  TonyTax replied 3 years ago.
I will extend my search.

I am in the UK and am a UK tax expert. The only link I have with just answer is as a self-employed contractor expert. They are based in San Francisco and have experts in hundreds of different areas including car mechanics, the law, computers, tax, etc. If you have any problem with the payment system, you should take it up with just answer as I have nothing to do with it. I only get paid if the customer accepts my answer no matter how long I spend on it.

If you like I can give you some figures that you can compare to the DT article.
Customer: replied 3 years ago.
Did you receive DT article ?.

Are you in estimating my uk tax liability factoring in the non dom reduction for which I understand I will qualify.
Expert:  TonyTax replied 3 years ago.
I don't have the article yet.

My calculations which I am working on now will be based on UK tax law. That will give you a 10% deduction off your Irish pensions, not the UK state pension.
Customer: replied 3 years ago.
Thanks Tony
Expert:  TonyTax replied 3 years ago.
I think I've found the article. It includes a list of tables. I'm working on my answer.
Customer: replied 3 years ago.
Great stuff
Expert:  TonyTax replied 3 years ago.

Hi again.

I have used a rate of 1.2 to convert Euros to British Pounds. Your non-UK pensions total £88,000 Euros which equates to £73,333. Deduct 10% and you are left with £66,000 subject to UK tax. Add the UK state pension of £2,000 and you have income before the deduction of the personal allowance of £68,000. As your income is well above the point at which you cease to be entitled to age allowance, you will have a personal allowance for 2014/15 of £10,000. Deduct that from your total income of £68,000 and you are left with taxable income of £58,000.

The first £31,865 will be taxed at 20% (£6,373) and the balance of £26,135 will be taxed at 40% (£10,454). Your total UK tax liability will be £16,827.

Your wife's income will be £2,083 per annum. As that is way below the personal allowance she will pay no UK tax.

In summary, your total joint income will be £77,417. Deduct the UK income tax of £16,827 and you are left with a net of UK tax joint income of £60,590.

I don't know what assumptions were made as to the division of income between a married couple for the purposes of the DT calculations and it is always dangerous to assume that such figures are how it should be. Clearly, as your wife has a low income, she is not using most of her personal allowance. From 2015/16, however, it will be possible for her to transfer to you £1,000 of her personal allowance. That is, of course, subject to the potential for a change in government in May 2015.

I'm not an expert on Irish tax but according to the UK/Eire tax treaty, you should only be liable to UK tax on your pensions assuming you are resident in the UK.

I hope this helps but let me know if you have nay further questions.

TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15883
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Expert:  TonyTax replied 3 years ago.
Thanks for your patience and for accepting my answer.
Customer: replied 3 years ago.
You are welcome. I will use the service again based on your performance.

Many thanks,

Dermot
Expert:  TonyTax replied 3 years ago.
Thanks.

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