Tax on Pensions.. - Page 2

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Tax on Pensions.. - Page 2


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  #11 (permalink)  
Old 19th June 2019, 09:44 PM
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No - you'll only pay tax on your RAF and a Prison Service pensions in the UK. But is may be worthwhile electing to pay tax on those pensions in Cyprus - see Pension Christmas present from HMRC.

Regards,
Apologies for high jacking this thread, but if one chooses to be taxed on State and private pensions in Cyprus, how does one go about it? Thanks for any responses.
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Old 20th June 2019, 10:00 AM
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Hi mikensue

The first thing you need to do is register with the tax authorities in Cyprus and get the form 'DT Individual' from https://www.gov.uk/government/public...-dt-individual

Complete the Form and get a 'Revenue Stamp' from the Post Office. (I can't remember how much they cost as I last bought one in 2002.)

Take the partly completed form to the Tax Office and they will (1) issue you with a tax reference number that is needed on the Form (2) complete the form (3) return it to the HM Revenue and Customs.

You can then sit back and twiddle you thumbs for a few months (6 in my case) and with any luck you'll get a letter from HM Revenue and Customs - and, if you're really lucky, a tax rebate :-)

What happens exactly after that I cannot remember, but you will need to complete a Cyprus Tax Return on-line and pay any tax you owe.

The tax system here is very straightforward and it's unlikely you'll need an accountant unless your financial affairs are complex. (I used an accountant once who completed my first return and showed me the ropes - since then I've done it all myself.)

Regards

Nigel
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Old 21st June 2019, 04:59 PM
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Hi mikensue

The first thing you need to do is register with the tax authorities in Cyprus and get the form 'DT Individual' from https://www.gov.uk/government/public...-dt-individual

Complete the Form and get a 'Revenue Stamp' from the Post Office. (I can't remember how much they cost as I last bought one in 2002.)

Take the partly completed form to the Tax Office and they will (1) issue you with a tax reference number that is needed on the Form (2) complete the form (3) return it to the HM Revenue and Customs.

You can then sit back and twiddle you thumbs for a few months (6 in my case) and with any luck you'll get a letter from HM Revenue and Customs - and, if you're really lucky, a tax rebate :-)

What happens exactly after that I cannot remember, but you will need to complete a Cyprus Tax Return on-line and pay any tax you owe.

The tax system here is very straightforward and it's unlikely you'll need an accountant unless your financial affairs are complex. (I used an accountant once who completed my first return and showed me the ropes - since then I've done it all myself.)

Regards

Nigel
Thank you for the most detailed answer, I'm sure it will be useful. Am I correct in saying tax forms are completed in July for the current year starting Jan 1st to Dec 31st.

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Old 24th June 2019, 08:22 AM
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Originally Posted by nhowarth View Post
No - you'll only pay tax on your RAF and a Prison Service pensions in the UK. But is may be worthwhile electing to pay tax on those pensions in Cyprus - see Pension Christmas present from HMRC.

Regards,
Nigel,

I wonder if it's possible to have one of these pensions taxed in UK and one in Cyprus to maximise the tax free allowances in both???

I'm not expecting an answer Nigel, just throwing it out there.

Garry

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Old 26th June 2019, 05:08 AM
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I wonder if it's possible to have one of these pensions taxed in UK and one in Cyprus to maximise the tax free allowances in both???
If you have a government service pension and a non-government pension, you pay tax on the non-government pension in Cyprus and tax on the government service pension in the UK.

If you have two or more government service pension you can't elect to pay UK tax on one of them and Cyprus tax on the other(s).

See Pension Christmas present from HMRC.

Regards,

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Old 26th June 2019, 07:02 AM
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Quote:
Originally Posted by nhowarth View Post
If you have a government service pension and a non-government pension, you pay tax on the non-government pension in Cyprus and tax on the government service pension in the UK.

If you have two or more government service pension you can't elect to pay UK tax on one of them and Cyprus tax on the other(s).

See Pension Christmas present from HMRC.

Regards,
Wow, that opens up some tax planning possibilities and sounds too good to be true Nigel. Many thanks.
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Old 26th June 2019, 07:46 AM
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You're welcome Garry

My wife has a Govt. service pension and the state retirement pension. She has them taxed in the UK and Cyprus respectively to minimise her tax liability.

Regards,
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Old 26th June 2019, 03:19 PM
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When you fill in your Cyprus tax form you are asked to declare your world wide income . Are you saying we can leave off income that is taxed in the U.K. ?

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Old 27th June 2019, 06:33 AM
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Hi Zoom Zoom

I can't say whether you'll still need to declare your worldwide income. We'll have to wait and see what the Tax Return form for 2019 looks like.

There is a field on the 2018 Tax Return 'Less: Overseas Tax' - maybe that's how it will work.

But your guess is as good as mine.

Regards,
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Old 27th June 2019, 06:48 AM
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Originally Posted by mikensue26 View Post
Am I correct in saying tax forms are completed in July for the current year starting Jan 1st to Dec 31st.
I think that's how it's supposed to work, but I've been paying tax here since 2002 and haven't done it that way. E.g. Tax for 2018.

At the beginning of 2019 I calculate the total pension I received in 2018. (I download a bank statement for the whole of 2018 to calculate).

Next, I convert the Sterling figure to €uro using the European Central Bank's average exchange rate for 2018 - see https://www.ecb.europa.eu/stats/poli...ph-gbp.en.html

That's the figure I use for my 2018 tax return.

As soon as I've completed and submitted the tax return, I pay the tax.

Regards,
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