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Peter
Peter, Chartered Tax Advisor
Category: Tax
Satisfied Customers: 151
Experience:  Director at PDS Tax Limited
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I have been living and working in Germany for almost 30

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Hi and good afternoon!
JA: Have you talked to a tax professional about this?
Customer: I have been living and working in Germany for almost 30 years now and have just had my UK pension pot paid out whereupon I was issued with an emergency tax code which meant an extremely high tax bill. I am entitled to a tax refund but being an expat here in Germany, I am very confused how I can apply for this as all the online forms at you.gov are for UK residents only. Can you help with this? Thank you. Sheldon Horner
JA: Which tax year is the refund for?
Customer: On the P45 it states the leaving date as 11.07.2019 so I assume 2019.
JA: Anything else you want the Accountant to know before I connect you?
Customer: Yes, I am still in full time German employment and living in Germany.

Hi, my name is ***** ***** I am a Chartered Tax Advisor. Please can you confirm

  • whether you have any other sources of UK income or capital gains?
  • is this your state pension?
  • is this a lump sum, drawdown or the start of an annuity?

I look forward to hearing from you.

Kind regards

Peter

Customer: replied 4 months ago.
Hello and thank you for replying. No, no other UK source of income. This is a private pension and nothing to do with the state pension and has been paid out as an "uncrystallised funds pension lump sum".

Thank you.

Under article 17 of the UK/Germany double tax treaty the pension should not have been taxed at all in the UK. Your pension provider should have applied a "NT" (no tax) PAYE code to account for your non UK/German tax residence status.

The preferred way to rectify this would be to amend any other PAYE codes to refund the overpaid tax on this pension, however that is not an option if you have no other UK PAYE income.

At worst you may have to wait until the end of the tax year i.e. 6 April 2020, and then write to HMRC:

  • Enclosing a copy of your P45
  • Explaining that you live abroad and have been non-UK resident for 30 years and have no other UK income/gains
  • Explaining that the income is not subject to UK tax under article 17 of the DTA
  • Asking for a refund by cheque

The address to do this is Self Assessment, HM Revenue and Customs, BX9 1AS, UK.

However, HMRC may be persuaded to give you a refund earlier than at the end of the tax year if you explain these circumstances to them. It seems unfair that would otherwise have to wait until next year to receive your refund which should not have been subject to tax in the first place.

The telephone number to call is +44(###) ###-####and you will need your national insurance number to hand so that they can identify you.

If you have any follow up questions, I am happy to help. Otherwise please consider a 5 star rating for my answer.

Kind regards, Peter

Peter and other Tax Specialists are ready to help you
Customer: replied 4 months ago.
Thank you Peter for this information. So I'll make the phone call and see what happens then get back to you. 5 stars?...of course!! :-)
Customer: replied 4 months ago.
Peter, they were very helpful and understanding. They took all the details and will get back to me by the 24th July 2019. Let's see what happens!!

Good to hear! Kind regards, Peter