Double Taxation

Information and questions about the Law in Spain and Andalucia.
Free at Last
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Double Taxation

Postby Free at Last » Mon Apr 22, 2019 9:44 am

Last year I finally got around to submitting the Spain (Individual) Double Taxation form with a certificate of fiscal residence to HMRC, and received a letter from them confirming that my main occupational pension would now be exempt from UK tax and an NT tax code had been issued for this. My smaller Civil Service pension remains taxable only in the UK but is well below the personal allowance so no tax payable on that.

I believed that the NT tax code would continue into future tax years, but when I received the first payslip of the 2019/20 tax year from my pension provider, I was surprised to see that a new tax code was being used and they were again deducting tax. I've checked my tax code via the HMRC website and it seems that I have been allocated almost two full UK personal allowances, one against each pension. I think this must be a mistake and will speak to HMRC about it tomorrow after the Bank Holiday, but I'd be grateful if anyone who has submitted the Double Taxation form could confirm that the NT tax code should continue, before I contact them. I don't yet receive a UK state pension, if that's relevant (I know I'll need to submit a new Double Taxation Form and fiscal residence certificate when I do start to receive one).

Lyric
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Re: Double Taxation

Postby Lyric » Mon Apr 22, 2019 10:12 am

My NT status has never changed once issued. Years now.

El Cid
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Re: Double Taxation

Postby El Cid » Mon Apr 22, 2019 10:18 am

In theory, yes, but HMRC has on a couple of occasions screwed it up and issued a tax code which has resulted in tax being deducted in the UK.

To be fair, they have always been very helpful when it happened and have sorted it out pretty quickly.

Sid

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Re: Double Taxation

Postby Free at Last » Mon Apr 22, 2019 11:29 am

Thank you both, for confirming that this must be an error. I agree, HMRC staff have always been very helpful when I've contacted them regarding other things, so I'll give them a ring tomorrow.

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Wicksey
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Re: Double Taxation

Postby Wicksey » Tue Apr 23, 2019 9:52 am

I altered my OH's tax codes directly through their website that I am registered to use (used to be the Gateway but seems to have changed now). They kept allocating far too much allowance to a small fixed pension and too little to the larger one meaning that he was paying tax unnecessarily. It seemed to work and the codes I allocated were applied and confirmation notifications sent out.

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Re: Double Taxation

Postby Free at Last » Tue Apr 23, 2019 10:15 am

Thanks, Wicksey. I did access my Personal Tax Account via their website to see if it was possible to request a change of tax code but couldn't see any way to do it, there was only an option to let them know if my income details had changed (which they haven't). I have rung them this morning but it wasn't very satisfactory, the person I spoke to was unable to transfer me to one of their "Techs" as he called them (probably all still on Easter holidays :roll: ) so I am waiting for a call back which he said would be before the end of 26 April - that's Friday so they're not exactly falling over themselves. It's annoying when you have jumped through all the hoops and think you have got it sorted out and then they go and mess it up just a few months later. I hope this doesn't happen again next year. Having checked the letter I received from them it does say that the exemption of my pension from UK tax "will apply as long as you're resident in Spain" so I don't know why this has happened.

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Re: Double Taxation

Postby Free at Last » Wed Apr 24, 2019 8:03 am

I got an email alert this morning to tell me that my tax code had been changed and I should log into my Personal Tax Account to check the details. Hurrah, it is now correct so they have acted swiftly, I'm glad to say. Haven't had the promised callback yet and I'm not sure if they will now, so no explanation as to what went wrong. I hope it doesn't happen again next year.

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Wicksey
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Re: Double Taxation

Postby Wicksey » Wed Apr 24, 2019 8:50 am

FaL HMRC are all over the place these days. All the local offices have shut where I used to live and work, and everything seems to go through centralised call centres which just don't give you that personal service. Plus the staff don't seem to be so well trained. I guess it's the same for most things now, like trying to contact banks etc.
I can't remember how I managed to change the codes myself although I did fill in the change of income forms as well but it still didn't allocate the allowances as I wanted. Anyway, glad you're sorted out now!

katy
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Re: Double Taxation

Postby katy » Fri Apr 26, 2019 10:55 am

It is not possible to change your own tax code.


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