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About apel

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  • Location Heidelberg
  • Nationality UK
  1.   That may well be the case for you.   But not all non-residents are entitled to the personal allowance, it depends on nationality and/or residence. To claim the personal allowance (or not) is yet another function of SA109.  
  2. I think it's quite clear that someone non-resident for tax purposes should not file online, and indeed I suspect it's not possible to do so without making a false declaration somewhere in the system.   So in a case where HMRC accept online filing, then I guess one of the following applies: they haven't noticed (they don't actually check most self assessment cases, they process them automatically) they think you're UK resident for tax purposes (which doesn't necessarily mean living in the UK) they have noticed but they can't be bothered to object because it doesn't make any difference in your case; or they have noticed, and it's to their advantage
  3. I think that if you are allowed to submit online (presumably without form SA109), then HMRC must believe that you are UK resident for tax purposes.   This may have implications for how much tax you have to pay, both in the UK and possibly elsewhere.   Form SA109 includes the required annual declaration of non-residence.
  4. UK state pension

      It's probably to do with the transitional arrangements between the old and the new systems.   I don't understand all of the detail, but basically in 2016 they calculated your accrued pension on two bases: old rules, with a lower base pension, and with SERPS and S2P added in and then a deduction for contracting out (which partly offsets the addition) new rules, with a higher base, but a deduction for contracting out and you entitlement is taken as the higher of the two.    More details are in: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf Warning: it's not easy to follow!   So I guess in your case the old was higher than the new.   This is why it isn't always effective to make voluntary contributions for periods before 2016, you may end up increasing the lower of the two bases.
  5. UK state pension

    If your objective is to reduce the deduction for contracting out (rather than building up towards the 35 years), it might not makes sense to pay voluntary contributions for years before 2016, as that's when the deduction was crystallised.   It just highlights the point that you have to understand your own position.
  6. UK state pension

    Paying voluntary class 2 to cover a year's gap in NI contributions costs £158.60 (this year). For people who live overseas, voluntary class 2 is only available to people who are working.   Voluntary class 3 costs £795.60 (this year)   In each case, the payment could result in an additional pension of about £5 per week from state pension age.    So, as I stated above, both represent a bargain, and in the case of class 2, an incredible bargain. They were planning to abolish class 2 a while ago, but it hasn't yet happened.   The rules are complicated, an it will not be effective for everyone. However, it can be effective in some cases if you will make less than the full 35 years' contributions OR if you have a significant deduction from the new flat rate state pension due to being contracted out in the past. It helped me, but everyone thinking about this needs to understand their personal position.
  7. How do you submit form SA109?
  8. From HMRC website:     If you are non-resident in the UK, you must complete form SA109, which is not available in HMRC's online services.   If you live outside the UK but remain resident in the UK for tax purposes, this doesn't apply, but I suspect that there are very few such cases.
  9. UK state pension

    This is correct.   The new state pension (£175.20 per week at present, if you have contributed for 35 years) is reduced for any period contracted out of SERPS, on the basis that during that time you contributed less than others towards the state pension, so it is fair. Furthermore, you are due to a pension from the contracted out scheme, which usually exceeds the reduction.   Many people (perhaps a majority) were contracted out at some point, so I find it a bit surprising that this feature isn't better known. I suppose there is no advantage to the government to publicise that their "universal" pension isn't really as universal as it sounds.   It affected me in the same way, but I knew about it when the new scheme was introduced, and I was able to make up some of the difference with voluntary Class 3 contributions. These are a bargain if you compare expected benefits to cost. Voluntary Class 2 contributions are an even bigger bargain, but are not available to everyone.