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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4985
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am wondering about my future situation when I take a small

Resolved Question:

I am wondering about my future situation when I take a small UK pension (state and teachers fund) it will be below the personal income threshold ..but I will be drawing the majority of my pension income from Australia and probably spending the greater proportion of my time over there, how should I arrange my tax? I currently pay tax in Australia too
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.

Hello and welcome to the site.
Thank you for requesting I help you with your question.

State pension although taxable income is paid gross to the pensioner. As far as teachers pension goes, you should request HMRC to give you a NT tax code for your teachers pension on the grounds that you will be non resident in the UK for tax purposes.

This way you would escape paying UK tax on UK earnings that would fall below your personal allowance here.

I hope this is helpful and answers your question.

Customer: replied 2 years ago.

Thank you I understand the first bit. However I have just been granted a lump sum benefit for deferred payment of the state pension. on a total of 11,277.07 I have had 2250 in tax deducted by the pension service. Should I be contacting the tax office in the hope of getting a refund of that?

Expert:  taxadvisor.uk replied 2 years ago.

Thank you for you reply.

Deferred payment of state pension is taxed at your marginal rate.
If without taking into account this income your income in the UK falls belows the personal allowance then you would not pay any tax...

You will find information here useful

http://www.litrg.org.uk/tax-guides/pensioners-tax/what-tax-do-i-pay-on-my-state-pension-lump-sum

You should contact the tax office and seek a refund.

I hopethis is helpful..

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Expert:  taxadvisor.uk replied 2 years ago.

I thank you for accepting my answer.

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Best wishes.