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EU pension in Euros converted to Pounds

(6 Posts)
Bea65 Sun 05-Feb-23 11:34:50

Would appreciate any advice from GNers who receive an EU work or state pension and how much tax will i have to pay...Also the current conversion rate is different each month and HMRC are requesting information on the amount...do I state what I receive in Sterling or in Euros...this is only a small amount each month around 300 pounds ..thank yousmile

Siope Sun 05-Feb-23 11:46:12

Do a self assessment after the end of each financial year - the deadline is January 31st following the relevant tax year. There is a section for overseas income and you complete that with the actual annual amount.

You need to register if you’ve never filed a self-assessment tax return before.

Info for filing online, but paper forms (with different deadlines, I think) are available.

www.gov.uk/log-in-file-self-assessment-tax-return

Siope Sun 05-Feb-23 11:52:32

Oh, and you use Sterling. How much tax you will pay depends on your overall income, and whether you live in Scotland or elsewhere in the UK. MSE has a tax calculator you may find helpful www.moneysavingexpert.com/tax-calculator/ Make sure to put the appropriate age in.

I’m assuming this will be for the 2022-3 tax year. If it is for an earlier year, you should already have submitted a tax return (so for 2021-22, the deadline was last week). If this is the case, phone HMRC immediately and seek their advice.

Andipandy Sun 05-Feb-23 12:06:17

What country will you be getting the pension from? Is it a state pension? Is there a double taxation treaty in place between the UK and that European country? You can check that on the Government UK website. If so and you now live in the UK that European country will have to pay you the gross pension and you have to pay income tax in the UK. But that European country’s pension authority should be able to advise you on that. I’ll be in the same situation in a few year’s time, I’m still working in Austria, but will return to the UK once retired.

Bea65 Sun 05-Feb-23 12:07:11

Thank you Siope very good info and yes it’s for 22-23 although I didn’t actually receive first payment until September so think will try and ring them..and the sterling amount slightly differs from month to month so do I calculate what I’ve received till now or?

Siope Sun 05-Feb-23 12:18:18

You do t need to call them - although you can, for reassurance if you want to. If you don’t have, or do t know, your tax code, ask them to tell you.

What you need to do is wait until after the end of March this year, register for self assessment. You will then be able, anytime between April 2023 and January 31st 2024, to complete a self-assessment tax return.

You add up how much your overseas pension was between September 2022 and March h 2023 and put that in the foreign income section.

There is space on the form for your UK income too (so other pensions, interest on bank accounts etc)

You will then be shown how much tax is due, and can pay it immediately.

It is very straightforward and simple.