koalakids Posted June 29, 2007 Share Posted June 29, 2007 Hi guys, I have made an initial query with the AF Pension people (Xafinity paymaster) who have confirmed that they can pay my pension into an Australian bank account. I am still a little puzzled as to whether it is taxed (in the UK) as it leaves the UK before arriving into my Oz account. Or do I just pay tax as it enters my Oz account. I would be grateful to hear from anyone who has recently left the AF and can share their experiences. Perhaps, I would be better having the money paid into a UK bank account such as the Nationwide in the UK and just make withdrawals via an ATM in Oz? Thanks for any help you can give me. KoalaKids :mask: Link to comment Share on other sites More sharing options...
Guest angela m Posted June 29, 2007 Share Posted June 29, 2007 Hi Have you tried looking at the HMRC web site? it might be of help Angela Link to comment Share on other sites More sharing options...
Guest Abi&Dan Posted June 29, 2007 Share Posted June 29, 2007 I didn't know Xafitinity administered the army pension?? (They aren't great ;-)) You should go back to them - if they have confirmed they make payments to international accounts they must know the treatment of tax in those cases. I believe UK and Oz have tax agreements whereby you only get taxed in your country of residence and your original country agrees not to tax you. Hope it helps Link to comment Share on other sites More sharing options...
Guest JackDanielsRN Posted June 29, 2007 Share Posted June 29, 2007 Hi What i've been led to believe so far is that you have an option to get it taxed here at source or taxed over in OZ. I too have ponded the best way to get my pension when it comes; should i let it build up here in a UK bank account (always handy things to have in case things dont work out) and transfer it when and if i need it. Thing against that is you may have to wait for a decent time for good Oz dollar rates. Or you could get a set rate with a money company with an agreed rate set for the year (shipmate of mine who joined the NZ navy did this ) Hope this helps Jack D Link to comment Share on other sites More sharing options...
Guest uksniper Posted June 29, 2007 Share Posted June 29, 2007 Go to HM Revenue & Customs: Home Page and read booklet IR20 for info. Basically there is a double taxation agreement between UK and Australia. When you leave fill in form FD2 and then you will get your pension paid Gross into your Australian account and pay Australian tax on it. As you will be an Australian resident they get first dibs on all your finances, even those abroad. I am not a financial guru so as I always see recommended on here, you should see a financial advisor if unsure. Link to comment Share on other sites More sharing options...
koalakids Posted June 30, 2007 Author Share Posted June 30, 2007 Thanks everyone for your suggestions & advice. I'm going to contact Xafinity in the first instance and I'll get back to you with my findings. Good luck to all with your dreams of a better life. I for one, am looking forward to getting away from this bloomin rain!! Brgds, KK. Link to comment Share on other sites More sharing options...
koalakids Posted July 3, 2007 Author Share Posted July 3, 2007 I have spoken with Xafinity and they have informed me that my pension will be taxed at source and will then be exchanged into Aussie dollars and paid into my Oz bank account. No worries there then. I hope this helps. Brgds, KK. Link to comment Share on other sites More sharing options...
Guest pabloke99 Posted March 12, 2008 Share Posted March 12, 2008 I have spoken with Xafinity and they have informed me that my pension will be taxed at source and will then be exchanged into Aussie dollars and paid into my Oz bank account. No worries there then. I hope this helps. Brgds, KK. Its been a while since this thread was last subscribed to, but here's hoping. Did Xafinity indicate what the exchange rate will be, e.g will it be better than the current bank rates? And do you know at what rate your pension is likely to be taxed? Being taxed in UK at base rate (<23%) is much more favourable than having it taxed at 40% in Aus as extra income...obviously. I am inclined to have mine paid into a UK account and then hopefully forget about it until needed, and keep NI contributions going towards the UK state pension. Paul Link to comment Share on other sites More sharing options...
Guest Graham&kym Posted March 14, 2008 Share Posted March 14, 2008 My Mil (via same source) is paid gross. It is then taxed again in OZ. I can then claim this tax back annually (as the UK have a recipricol agreement) Bottom line...I loose out fr 12 percent for 13 months, but then get i returned,,,Hope this helps. ps 22 yrs RAF and working as a paramedic in Perh WA. Link to comment Share on other sites More sharing options...
Guest pabloke99 Posted March 14, 2008 Share Posted March 14, 2008 My Mil (via same source) is paid gross. It is then taxed again in OZ. I can then claim this tax back annually (as the UK have a recipricol agreement) Bottom line...I loose out fr 12 percent for 13 months, but then get i returned,,,Hope this helps. ps 22 yrs RAF and working as a paramedic in Perh WA. Graham, do you have it paid gross into your Oz account? If so, what is the exchange rate and how much tax are you able to claim back? Is there any impact upon indexing when you reach 55 years old? Sorry for so many questions, Many thanks. Paul Link to comment Share on other sites More sharing options...
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