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bigduckontax
bigduckontax, Accountant
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My mother recieves a sum of approx £600 every month from USA

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My mother recieves a sum of approx £600 every month from USA social security, as a pension from a time she lived there with my father but she didnt work and hasnt worked since she was about 31 and is now 83.
She has recently been sent a 'world wide disclosure form' asking her to declare assets and income from abroad (she doesnt have any assets). Prompted by the fact that she has this money paid into a nationwide account every month. Im not aware she has ever (in last 30 years) filled in a tax return as she has been a housewife and not earn't any money. Im unsure if I should just return the form saying we will bring her tax affairs up to date..which is one of the options on the form?
She has vascular dementia so I'm making this enquiry as to waht to do on her behalf.
Submitted: 2 months ago.
Category: Tax
Customer: replied 2 months ago.
Sorry its a LLoyds bank account she has the money transferred to.
Expert:  bigduckontax replied 2 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Yes , i would suggest that you do that. However welcome to an exercise in financial futility as 600 quid per month [7200 pa] is well below the Personal allowance level so would not be taxed in her hands anyway. However, beware of the ni**er in the wood pile, to use a non PC expression. That is the State Pension (SP), taxable, but paid gross. If she is in receipt of a SP then this could well push her into a taxable situation and she should be making an annual self assessment tax declaration every year. If the US federal tax authorities are deducting tax from her US Social Security payments then these are, under the Double Taxation Treaty between the UK and the US, and indeed with several individual States within the Union as well, allowed as a tax credit against UK liability on the same income stream.

I am so sorry to have to rain on your parade, the situation is not quite as simple as one might have thought.

Customer: replied 2 months ago.
Ok thanks, ***** ***** have to double check the figures and see if I can find out if the US social security is taxed as I know she also gets a small UK state pension
Expert:  bigduckontax replied 2 months ago.

If she scrapes under the Personal Allowance with the combined total all should be well. Otherwise HMRC will trample all over her for peanuts in unpaid taxes, interest and penalties. That is official policy as tangling with the big boys with their armies of lawyers and accountants is a waste of scarce resources.

\please be so kind as to rate me before you leave the Just Answer site.

Expert:  bigduckontax replied 2 months ago.

Sorry Just Answer is refusing to allow me to modify my last response.

After unpaid taxes add ',interest and penalties'

Customer: replied 2 months ago.
I've just rechecked - she gets £618.01 USA and £296.12 UK which means that she is under the tax allowance and even if they are taxing her before sending from the US she should be ok?So I assume I can fill in the world wide declaration saying nothing to be updated/declared
Expert:  bigduckontax replied 2 months ago.

Except for the US pension!

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Customer: replied 2 months ago.
understood. Thanks, ***** *****
Expert:  bigduckontax replied 2 months ago.

Delighted to have been of assistance.

Thank you for your support.