Stev143 Posted April 15 Share Posted April 15 Dear friends, as usual we received our UK tax coding last month. I have a question. As we all know our state pension is frozen. It has had significant increases in the last 5 years since we came to Australia. When you receive your new coding, is this reflecting the new 2024 state pension amount, or is it based on the frozen amount. And if its based on the 2024 amount are we being over taxed..?? I hope I've explained that ok. Thanks in anticipation. Steve S Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted April 15 Share Posted April 15 Your coding is based on how much you can earn tax free, it isn't reflective of your income, so it changes each year based on 1) the agreed tax free amount from GOV 2) any tax you owe previously 3) any other benefits you have or income from dividends etc 1 Quote Link to comment Share on other sites More sharing options...
Judy Posted April 15 Share Posted April 15 15 hours ago, Stev143 said: Dear friends, as usual we received our UK tax coding last month. I have a question. As we all know our state pension is frozen. It has had significant increases in the last 5 years since we came to Australia. When you receive your new coding, is this reflecting the new 2024 state pension amount, or is it based on the frozen amount. And if its based on the 2024 amount are we being over taxed..?? I hope I've explained that ok. Thanks in anticipation. Steve S Shouldn't your tax code be NT (no tax) as tax is paid on all world income in Australia if that is where you are living. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 15 Share Posted April 15 16 hours ago, Stev143 said: Dear friends, as usual we received our UK tax coding last month. I have a question. As we all know our state pension is frozen. It has had significant increases in the last 5 years since we came to Australia. When you receive your new coding, is this reflecting the new 2024 state pension amount, or is it based on the frozen amount. And if its based on the 2024 amount are we being over taxed..?? I hope I've explained that ok. Do you still have other investments in the UK? I'm wondering why you're still doing a tax return. Quote Link to comment Share on other sites More sharing options...
Stev143 Posted April 16 Author Share Posted April 16 4 hours ago, Marisawright said: Do you still have other investments in the UK? I'm wondering why you're still doing a tax return. Hi Marisa, we have no investments back home. Ive a private pension and our two state pensions. We didn't ever do a tax return in the UK. Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted April 16 Share Posted April 16 6 hours ago, Stev143 said: Hi Marisa, we have no investments back home. Ive a private pension and our two state pensions. We didn't ever do a tax return in the UK. It's the private pension most likely as that's UK derived income Quote Link to comment Share on other sites More sharing options...
Judy Posted April 16 Share Posted April 16 14 minutes ago, Ausvisitor said: It's the private pension most likely as that's UK derived income All UK pensions whether state or private are taxed in Australia. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted April 16 Share Posted April 16 The private pension may be deducting tax at source you should be able to check the statements. You can opt to have no tax deduction by HMRC. you complete a form and send it to the ATO who verify your status and tell HMRC who then tell the pension company to stop deducting tax. I assume you must be reporting tax already paid to the ATO? If you are not sure it is time to consult an accountant who understands Uk pensions paid to Aus residents. Quote Link to comment Share on other sites More sharing options...
Ausvisitor Posted April 16 Share Posted April 16 1 hour ago, Judy said: All UK pensions whether state or private are taxed in Australia. Yes but the question was about the UK tax code not the treatment of the income in Australia Quote Link to comment Share on other sites More sharing options...
Judy Posted April 16 Share Posted April 16 1 hour ago, Ausvisitor said: Yes but the question was about the UK tax code not the treatment of the income in Australia Why is the OP getting a tax code from HMRC? He states that he hasn't had a rise in his state pension in the five years since he's been in Australia. (which we don't). So you would assume he is tax resident in Australia. I don't think we have the full facts and he may need advice from a tax agent. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted April 16 Share Posted April 16 20 hours ago, Stev143 said: Hi Marisa, we have no investments back home. Ive a private pension and our two state pensions. We didn't ever do a tax return in the UK. In that case, why are you being given a tax code? Quote Link to comment Share on other sites More sharing options...
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