Living Overseas & Pension - MY Ramblings

Discussion in 'Jobs (Discussion)' started by bullshit, Dec 17, 2007.

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  1. Hi

    I have been out for a few months and live outside the UK which seems to be the intention of most squaddies coming to the end of there service! So I thought I was pass on a few of my experiences which may help:

    Pension, the big one. By living outside of the UK, this is classed as your sole income so you receive all of the tax free threshholds etc, so for me on a WO2 pension with commutation, I pay only 50 quid a month tax!

    Taxation. Check that the country you are going to has a Double Taxation Agreement so that they do not tax this pension again.

    NI contributions: Not paying, but still keeping an eye on if they drop the qualifying period. This is a very personal thing tho' and for me it was just not worth it.

    Getting yr cash: I use a HSBC Bank Acc Plus which costs 11 quid a month. for this I get no charges on overseas cash withdrawls from a hole in the wall and full world travel insurance. The savings on charges easily makes the 11 quid worth it. Also hole in the wall cannot be traced by the country you are living in.

    Lump Sum. Be careful about bringing it into yr new country, they tried to tax mine until I showed the double taxation agreement. Basically, check it out before moving it.

    Address: Try to keep at least 1 UK address, be it Brother, pal etc.

    Banking in General: I find HSBC to be good, mainly as it is international and the online banking does pretty much everything, also the service is good.

    Else: Look into converting your final move into cash, which you can then use to put towards your relocation costs.

    Hope this is of use, any more additions from squaddie refugees are most welcome!
  2. Good tips, but where are you?

    I am intending to move to Cyprus as soon as I can sell my house. They only tax your pension there at 5%. BONUS!
  3. Beware the tax man in Germany.

    They will come after you for the tax you owe on your lump sum and your pension.

    There is a fully working double taxation agreeement but the miserable feckers get round it by sticking your pension onto your yearly wages and then taxing your wages at the rate for the total! This means about 800 euros extra that you have to pay each year.

    This has been fought in the courts on umptypoo occasions and the tax man has won every single time.

    Just something to be aware of.
  4. ugly

    ugly LE Moderator

    Oh yes, cnuts they are!
  5. I have been living in Germany for several years, I was advised before my discharge to open an account in the Channel Islands, very good move, NOBODY knows about it outside the CI. After settling here I was told by a tax advisor that because of double tax agreements my pension was exempt from German taxes, however to be on the safe side I keep the pension quiet.
  6. But why not just keep a UK HSBC account, they dont tell the country your living in, I was assured this by HSBC in the UK!! So basically say 'pension? Wot pension??' but as there are maybe so many ex-sqauddies living in the fatherland they German Tax know about squaddies and pensions, whereas living in Denmark, they are unaware.
  7. ugly

    ugly LE Moderator

    A good mate of mine was eventually found out after nigh on 20 years in Hermany, married to a boxhead, boxhead son and well and trully stiffed by the Bureau of reichs taxes!
  8. 1 more tip!

    Just got off the fone to DWP and I only have 6 years of NI Class 3 contributions to pay to qualify for state UK pension! So basically, as the qualifying period is now 30 years (was 44) if I now pay 8:10p a week I will be able to claim full UK state pension, in Denmark at 65 - and this money cannot be touched by the Danish Tax authorities (same for all EEA countries). So, basically I am u-turning on my decision to pay NI contributions and keeping it going for another 6 years to qualify, lets hope I make it to 65....
  9. ugly

    ugly LE Moderator

    Thats provided they dont change the rules in the meantime!
  10. I think the risk will be raising the age from 65 to 70....
  11. So how did Herman find out? And how many years of back tax did he have to pay? Not that I'm worried. :(
  12. ugly

    ugly LE Moderator

    I think they found out as he moved his ill elderly mum over from Scotland to look after her and they sniffed and snitched. About 10, 000 Euros they want from him. He hasnt got it and his Frau works for a Charity so they are in deep doo doo. Sold everything sellable so far!
  13. Alsacien

    Alsacien LE Moderator

    You should fill in the Jerry tax declaration and state you are "resident for tax purposes" in UK and return a 0 for income. Unless you are married to someone paying German tax and claiming a lower taxation class for being married you are then legal.
    The Hermans are tightening up, soon they will figure out how to use a computer and network connection - then you will be running risks if you are not careful. Each tax office is isolated, and certainly do not know much about non-standard cases.
    I hire a lot of consultants - very few of whom pay much tax and neither do I - but it takes some effort and took me years to figure out.
  14. Fcukers got me last year. Had to pay the extra on my wages plus gratuity, I took them to court and managed to sort of half win, instead of paying over 20,000 Euros I "only" had to pay 5,000.

    Still fcuking hurt.

    I wasn't even trying to hide it from them, I remember what happened to Al Capone :) but I didn't declare the gratuity as I (mistakenly) thought it was totally tax free. Wrong.
  15. Sche1ße.

    Time to go and hide.