Pension sorted, deduction made.

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Dusak
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Pension sorted, deduction made.

Post by Dusak » Sat May 12, 2018 5:58 am

Finally, with the help from my friend in the UK I've got my pension sorted, goes in the bank here in May, but they have reduced it by £1,085 per year. Bit miffed at that, didn't mind loosing any increases or bonuses, but object to loosing something that I'm entitled to. They say I can appeal within four weeks, but the decision may actually reduce it even more. So decided to let it go. Maybe because I'm now divorced, or just cos I'm living in a non European country, who knows.


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Re: Pension sorted, deduction made.

Post by newcastle » Sat May 12, 2018 7:10 am

Any reduction in your pension should not have anything to do with the fact that, when receiving the pension, you are non-resident. The OAP is based on contribution history.

Why it's reduced (reduced from what?) I can't say.......but surely they would have explained this ?

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Re: Pension sorted, deduction made.

Post by Horus » Sat May 12, 2018 9:49 am

I agree with Newcastle and why the veiled threat that your pension may be further reduced if you make further enquiries? Believe me the pension department is not known for giving you something with a nod and a wink that it may be too much but with a “keep that to yourself” attitude, if they don’t owe it to you then they will not give it to you, or if they do so by mistake and they later find out then they will want it back. When I contacted them to stop my wife’s pension after her death, they wrote very quickly to ask for an overpayment of about two weeks pension to be repaid. You are entitled to whatever you are legally entitled to receive under your pension contributions and other than some pension conditions that apply to everyone living in certain countries such as no Winter Fuel payments or annual increases, then you are entitled to your correct pension with no unexplained deductions, I would be asking for a full breakdown.
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Re: Pension sorted, deduction made.

Post by newcastle » Sat May 12, 2018 10:45 am

I'm only guessing here....but if Dusak had a working history of employments/self-employments he may not have paid the full stamps entitling him to the full standard OAP.

When there is a reduction for insufficient contributions, I would expect the pensioner to be given the calculation.

There's no question of "discretion"....you're entitled to receive what is determined by your contribution record. No more - no less.

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Re: Pension sorted, deduction made.

Post by Dusak » Sat May 12, 2018 1:00 pm

I was a couple of credits short, which I could still pay if I wanted to, but to be honest the sum asked for and the difference it would make to my payout was very low and not worth the bother. This credit shortfall was itemized in my projection when I had filled in all the security questions and used the once only code they sent me via my phone. I then had sight of two weekly sums, one without the top up, one with. My friends husband in the UK that has sorted it out for me, same conditions as me, but obviously not divorced and living here, receives £50 per week more than myself. My friend upstairs has been talking to her retired English friend about her pension while living here, she had to accept 20% held back for as long as she resides here. She, like me, was told that if I return to the UK I would be reimbursed the short fall for a maximum of three years, plus any increases plus any bonuses paid out. My friend sent me the forms and this is what it stated. They also stated that currently the UK pensions are under review, but any changes will not affect those already in recite of their pension, this was about five weeks ago via my UK friend from the pensions department.
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Re: Pension sorted, deduction made.

Post by Horus » Sat May 12, 2018 1:45 pm

Dusak, I am not sure how your marital status comes into calculating your own pension? They are based upon your own contributions whilst working, but the reason may be that your friend has paid more into the now defunct SERPS part when they were working and that is being added to the basic state pension to give the extra amount they receive. I was wondering if it was to do with a pension credits shortfall, but they do usually offer you the opportunity to pay up any missing amounts, it may make little difference to you now but I would be tempted to pay those up if the amount is not great as often rules get changed and who knows if in the future it may affect the amount you receive in some way.
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Re: Pension sorted, deduction made.

Post by carrie » Sat May 12, 2018 2:00 pm

Like you Dusak I get a UK pension and it is frozen. However some time ago I went back to the UK and had to ring the pensions place, they asked where I was calling from and I told them the UK. They then asked how long I would be in the UK, I told them 2 weeks and they then informed me that I should inform them when I was back there because they would increase my pension and give me the increases that I would have been entitled to had I remained in the UK. The increases would only be for the two weeks I was in the UK when I returned to Egypt then the increases would be cancelled once again. Don't know if you intend returning for a visit in the years to come but it is worth bearing in mind.

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Re: Pension sorted, deduction made.

Post by Major Thom » Sat May 12, 2018 3:09 pm

Yes Agree with all said, but the Pension system does depend on your payments. how long have you been out of the UK D, this may have a baring on the deduction. Oh! the beauty of living in the EU, the deduction of over 100 Squid a month though is a lot. Have you looked upon the Gov.uk site you can see how many contributions you have made, and it gives you an idea. I was fortunate to be able to top my contributions up while living in Luxor, and did so.

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Re: Pension sorted, deduction made.

Post by newcastle » Sat May 12, 2018 3:50 pm

Again...reading between the lines and a certain degree of guesswork....

A small shortfall in contributions will have a very small effect on pension.

The deduction to which Dusak refers may be tax......although he made no mention of this initially.

Even as a non-resident you're entitled to the Personal tax allowance which usually well exceeds the pension....BUT YOU HAVE TO CLAIM IT.

If you’re not a UK resident, you have to claim the Personal Allowance at the end of each tax year in which you have UK income. Send form R43 to HM Revenue and Customs (HMRC).

https://www.gov.uk/government/publicati ... the-uk-r43

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Re: Pension sorted, deduction made.

Post by Major Thom » Sun May 13, 2018 4:49 am

Yes that is correct Newc. The trouble is they do not inform you of this from the tax office, its on the Gov.uk site and if you miss it you then start paying. Pleased you got it sorted though D. It can be minefield though, and they keep moving the goalposts. The way things are going it looks like State Pension is on its way out and and private pension schemes will become the source of retirement pensions. Although we pay in all our working lives, with people living longer, the payment pot gets less and that is why people get their pensions (Depending on their age) later and later. It's a bit of a travesty really, and it would be interesting to know the percentage of people that do not live to claim their pension, to the percentage that do live to claim. You would think that the money paid in by people that do not claim would be paid to the remaining member of the family. But that may be asking too much. Say someone had paid contributions from 18 years old and passed or lost their life before retirement age, where does that money go, a Government make!!

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Re: Pension sorted, deduction made.

Post by Dusak » Sun May 13, 2018 5:34 am

newcastle wrote:Again...reading between the lines and a certain degree of guesswork....

A small shortfall in contributions will have a very small effect on pension.

The deduction to which Dusak refers may be tax......although he made no mention of this initially.

Even as a non-resident you're entitled to the Personal tax allowance which usually well exceeds the pension....BUT YOU HAVE TO CLAIM IT.

If you’re not a UK resident, you have to claim the Personal Allowance at the end of each tax year in which you have UK income. Send form R43 to HM Revenue and Customs (HMRC).

https://www.gov.uk/government/publicati ... the-uk-r43
Never thought about tax rebates, may be worth a look at, thanks for the link. The only ''income'' I've had here is my private pension, no declarable incomes in the UK and all my tax payable were paid well before I left the UK. I froze my pension payments just before we left.
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Re: Pension sorted, deduction made.

Post by Dusak » Sun May 13, 2018 10:49 am

just opened an attachment my friend sent me, the pensions department has done a reassessment, without being asked, and increased it by £10 per week, so I can live with that. Someone in the office must be a member on here :lol:
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Re: Pension sorted, deduction made.

Post by Horus » Sun May 13, 2018 11:22 am

As I stated earlier Dusak, they will only give you what you are entitled to, no more and no less, so if you think it is incorrect then challenge their figures you will usually find them very helpfull.
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Re: Pension sorted, deduction made.

Post by DJKeefy » Mon May 14, 2018 2:31 am

Dusak wrote:Someone in the office must be a member on here :lol:
You might be right there Dusak :st We do have a TAX MAN if you want to give up some of your money :mo
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Re: Pension sorted, deduction made.

Post by Dusak » Mon May 14, 2018 4:04 am

Like the rest of the planet keefy, I consider that I paid far to much tax in the past :lol:
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Re: Pension sorted, deduction made.

Post by Major Thom » Mon May 14, 2018 4:37 am

The only people that do not pay enough tax in the UK "D"are the rich, they rely on the poor to pay for them....

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Re: Pension sorted, deduction made.

Post by newcastle » Mon May 14, 2018 5:53 am

Dusak wrote:
newcastle wrote:Again...reading between the lines and a certain degree of guesswork....

A small shortfall in contributions will have a very small effect on pension.

The deduction to which Dusak refers may be tax......although he made no mention of this initially.

Even as a non-resident you're entitled to the Personal tax allowance which usually well exceeds the pension....BUT YOU HAVE TO CLAIM IT.

If you’re not a UK resident, you have to claim the Personal Allowance at the end of each tax year in which you have UK income. Send form R43 to HM Revenue and Customs (HMRC).

https://www.gov.uk/government/publicati ... the-uk-r43
Never thought about tax rebates, may be worth a look at, thanks for the link. The only ''income'' I've had here is my private pension, no declarable incomes in the UK and all my tax payable were paid well before I left the UK. I froze my pension payments just before we left.
Any private pension received from UK remains taxable in UK, notwithstanding that you are non-resident.

If you draw any private pension it will normally be taxed under the PAYE system.

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Re: Pension sorted, deduction made.

Post by Major Thom » Mon May 14, 2018 1:53 pm

Again correct Newc. That is why I have changed all my tax to Cyprus, to gain a further 6000 Squid of Tax free money and then after that taxed at 5%. I have three Pensions and in the UK or outside of where we are living my tax would have been approx 4000 Squid a year. It's flaming horrendous. Living in Luxor though your tax relief would come from the prices you have to pay for things, even though prices have doubled the price and tax relief from the UK blend and adds more spendable cash.
On saying all about the pensions a monthly incomes I have noticed that property rentals have gone up a lot in Luxor. An Apartment like we live in with communal pool, (Ours is 40 metres x 24 Metres) fully furnished with with excellent modern furniture, and white goods, dream beds with Orthopedic mattress's, Lovely gardens to walk through with built in BBQ's for sultry evenings, we rent at about the same cost as one similar on the WB, maybe the only difference is the water and electric, we pay every 2 months. Water 25 Euros and Electric between 75 and 150 Euros depending on the season. That is with Solar Panel help too. I can hardley think of a local being able to afford what they are asking in Luxor. The average wage in Paphos is between 800 and 1000 Euros a month (A lot less than Luxor) and the young people are struggling already for their homes. The older type properties cost a lot less though, but young people all over the world want it now and cannot wait, they seem to be very impressionable, like most of the young people. We did have a friend who we paid for his rent while we were there, he and his family did not want anything over the top and got a ground floor apartment no ceramics, water heater hanging off the wall, he never sought to do anything about it, an old door that would not keep a 2 year old out, was pathetic really, but that's what he wanted so who am I to say different. 350LE a month. To be honest I offered to buy him a tent, it would have been far better.

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Re: Pension sorted, deduction made.

Post by newcastle » Mon May 14, 2018 3:03 pm

@ Duaak

As you appear to be tax resident in Egypt, but not in UK, you could claim treatment under the UK/Egypt Double Tax treaty.

This provides that the UK pension of an individual resident in Egypt is taxable only in Egypt, and so can be paid without deduction of UK tax.

Unfortunately, whilst pensions of Egyptian tax residents are generally exempt from Egyptian tax, this does not apply to the pension of expats. Accordingly, although you'll be exempt from UK tax on your State, and private, pensions you would be liable to Egyptian tax....which is more than the tax payable in UK.

Not only that, you'd have to deal with the full gamut of Egyptian tax bureaucracy.....a daunting prospect.

I suspect most UK expats in Egypt are happy to continue paying UK tax on their UK pensions and do not claim to be tax resident in Egypt (even though, technically, they are).

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Re: Pension sorted, deduction made.

Post by Yildez » Mon May 14, 2018 3:33 pm

newcastle wrote:@ Duaak

As you appear to be tax resident in Egypt, but not in UK, you could claim treatment under the UK/Egypt Double Tax treaty.

This provides that the UK pension of an individual resident in Egypt is taxable only in Egypt, and so can be paid without deduction of UK tax.

Unfortunately, whilst pensions of Egyptian tax residents are generally exempt from Egyptian tax, this does not apply to the pension of expats. Accordingly, although you'll be exempt from UK tax on your State, and private, pensions you would be liable to Egyptian tax....which is more than the tax payable in UK.

Not only that, you'd have to deal with the full gamut of Egyptian tax bureaucracy.....a daunting prospect.

I suspect most UK expats in Egypt are happy to continue paying UK tax on their UK pensions and do not claim to be tax resident in Egypt (even though, technically, they are).

A good reason for living in Turkey!! The UK has a Dual Tax Agreement with Turkey, which allows for British residents to choose where they pay tax. As the majority of pensions are tax free in Turkey ( until you get into extreme levels of income ) it's a great option. I have both State and private pensions and pay no tax at all! It took a year to sort it out with the UK tax office, who kept losing my documents :urm: , but it was certainly worth the effort!

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