UK and Spanish tax

[Malcolm]

Byrney, it’s not difficult I receive a pension from BT paid to me here and I pay tax on it with Spanish allowances. Why would I mess with a bomb proof pension?

[King]

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[byrney]

 So you've actually been able to transfer your pension over to the Spanish system. Wish I could. At least you're not now contributing to that lot and you're helping your host Country which is what I'd prefer to do.

[Malcolm]

GPO was civil service. Mrs Thatcher sold the silverware and we were no longer civil service. However terms and conditions remained

[byrney]

Malcolm, did you choose to privatise your Civil Service Pension, or was it thrust upon you?
I suspect the former.

[Malcolm]

OK King thank you for the explanation,I know from your previous posts you know more than most on this forum but it does make me cross that my once civil service pension was privatized and it costs me 2000 euros a year because it’s no longer government.

[Angieh]

You need to declare ALL your income in Spain. You can declare  it's a crown pension, but if it takes you over the Spanish threshold for tax you are liable to pay. And they can go back for several years, and they are in communication with HMRC . Trust me, as a person who had no intention to defraud the system , it's an expensive mistake. Get proper advice

[byrney]

I don't feel guilty at all King.
I am complying fully with the Law.
Those of you living under the radar are not.
Simple.

[King]

.

[byrney]

But, I'm NOT in the UK! I also give up. It is not my fault that gov.uk won't let me pay tax on my LG Pension in Spain.
I would much prefer to do that than give money to the muppets over there.

[Malcolm]

I give up. If you were in the UK you would pay tax on your state income as it is included in your total worldly income. That means your state income is taxed here at 24%

[byrney]

I am complying with the Law.

[Malcolm]

You are claiming two allowances

[byrney]

I pay tax on my Local Government Pension in the UK as I am required to do.
I pay tax on my Old Age Pension in Spain as I am required to do.
I declare my LG Pension to the Spanish Tax Authorities including the amount of tax I pay as I am required to do.
I do not pay tax twice on my LG Pension because of the Dual Taxation Agreement.
I do not see what your problem is Malcolm.

[byrney]

You are wrong Malcolm. Sorry to disagree.

[Malcolm]

They collect it but Spain want it so you claim it back and pay it here. You can’t have two tax allowances.

[King]

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[Malcolm]

The point is you fill in form S1 1976 and claim back the UK tax you have paid and pay in Spain the relevant amount as you are tax resident here

[King]

.

[byrney]

Pay the relevant tax?

[Malcolm]

Quite right but someone on a final salary crown pension could be drawing more than the allowance. What do you do then?

[Tetley]

King or any other numbers type folks  can yer explain this for us not so brights....
as i understand it......
any income example uk crown pension plus old age pension is declared in spain
example crown pension 10k
state pension     10k
total income 20 k
spanish tax allowance guide 5k in £,s
so the tax liability in spain is say 22 % of 15k,ball park
then yer double taxation lark kicks in so yer dont pay twice  on the Spanish balance to pay

No tax on UK Crown pension in Spain. So, take Spanish personal allowance (5,550â,¬) plus the Crown Pension (10,000â,¬) off tax scales, ie if under 65 in 2020 tax return. So tax on state pension (10,000â,¬) is 4,700â,¬@24% and 5,300â,¬@30%: a total Spanish tax bill of 2,718â,¬.

With a UK personal tax allowance of £12,500, there is no UK tax to pay on the UK Crown pension of £10,000.

I hope that helps.

Interesting thanks .

[King]

.

[byrney]

Exactly. I sleep easy at night.

[Malcolm]

Well done,nothing to worry about then.

[byrney]

I pay the taxes which I am obliged to pay thank you.

[Malcolm]

Byrney when I came here fifteen years ago the bank manager said to me do not trust anyone here to do things properly whoever they are, so if they told you you can have two tax allowances I suggest you get someone else.

[byrney]

And I always thought that s/he was a polite person.

Oh well. Assume my assumption was correct then.

[Cartron]

Another Returnee when losing in a discussion resorts to insults.
Charming.

[King]

.

[Angleseyite]

All I know is I pay twice+ as much tax here in Spain than I did in the UK.. But that's how it is 

[byrney]

Malcolm. I didn't make the rules. I simply give the true facts to my accountant and I pay him to do the necessary firm filling and then I pay whatever tax is owed.

[byrney]

Simply stating facts King. If you don't like my truthful comments then don't read them. Simple. Assume you must be under the radar otherwise you wouldn't be so tetchy.

[Malcolm]

I am well aware of where my pensions come from and I pay a considerable amount to Spain thank you.What I don’t understand is why you think you should be able to claim two allowances.

[King]

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