FCMR Posted July 4, 2004 Share Posted July 4, 2004 An ex Manx serviceman gets almost £3k pension from the British Army, he no longer works, his pension is taxed in the UK at 23%.(no allowance given) Why does a Manx person have to pay UK Tax. Can anyone help over this matter. Link to comment Share on other sites More sharing options...
thebees Posted July 4, 2004 Share Posted July 4, 2004 Taxed at source? Can the person reclaim the tax? Link to comment Share on other sites More sharing options...
geo Posted July 4, 2004 Share Posted July 4, 2004 The thing here is he was employed by the UK Government as a servioceman because the Island does not have its own services as such. He will be taxed by the UK because the payment comes from the UK. I am not sure exactly how it works but he can claim his tax back from the UK and then pay manx tax. If your freind goes down to the tax office in Douglas I am sure they will advise him of exactly what he has to do. This is not unique, my old man had a similar thing happen when he recieved his UK Health Service pension, he got taxed twice in effect but was able to get all the money back from the UK Government. Geo Link to comment Share on other sites More sharing options...
FCMR Posted July 4, 2004 Author Share Posted July 4, 2004 Geo This has been ongoing for the last four years, with no results Link to comment Share on other sites More sharing options...
geo Posted July 4, 2004 Share Posted July 4, 2004 As I said, mu old man had a similar situation and after he spoke to the tax office in Douglas it was all sorted out. The problem is with the UK tax authority, he may have to fill in a UK tax form. He should take all the relevant info, pesion reciepts, prrof of residence etc down to the tax office and I am sure they will point him in the right direction. Geo Link to comment Share on other sites More sharing options...
Ripsaw Posted July 4, 2004 Share Posted July 4, 2004 Don't they only tax the Interest received on your savings? Interest is classed as (new) income. Link to comment Share on other sites More sharing options...
Declan Posted July 4, 2004 Share Posted July 4, 2004 Manx Bank Accounts don't tax interest at source, do we have to declare it on our tax returns (I never get any)? I think with the pension situation you have to get yourself declared non-resident in the UK, I think the Inland Revenue have a form for this. But I suppose he has been down this route if he has been trying for four years. The difficulty could be a rigid accounting system for the MOD pensions people. Yet, you would think this must be a regular occurance for them - how many ex-servicemen are now ex-pats - I would have thought thousands. Link to comment Share on other sites More sharing options...
Declan Posted July 5, 2004 Share Posted July 5, 2004 Link for Inland Revenue Form Not much else on the Inland Revenue site I could find. Link to comment Share on other sites More sharing options...
Observer Posted July 5, 2004 Share Posted July 5, 2004 He should be able to get a tax rebate when he completes his IOM tax return under reciprocal tax arrangements? I assume then that this tax is being deducted before the pension is paid out to him? Does he complete a UK tax return? Even when I worked in Australia and paid tax there, I filed my manx return and still got a rebate under the reciprocal tax agreement but it may be that any rebate is offset against IOM tax paid. (PS. I will try and find out though) Link to comment Share on other sites More sharing options...
crumlin Posted July 6, 2004 Share Posted July 6, 2004 Pension from the British services are treated as any other income from outside the IOM, the IOM Taxman has the right to tax that income a second time after giiving that applicant double tax relief. If you go and work outside the UK you have to inform the IOM taxman in writting before you go, if not you will be taxed again. Ans, and how do I know this. I left the IOM to live and work in Holland, I spent 8 years away and was employed cards in, ie. paid Dutch Tax,insurance and Church tax, on my return to the IOM I was asked to prove where Id been and who I had worked for, I did, showed all by paper work from Holland and got hit with a big Tax Bill. The reason given by the IOM Taxman was that as far as they were concerned I was still a Manx worker as I had still kept a Manx address (my Mothers), and the courts agreed with the Gov. Link to comment Share on other sites More sharing options...
crumlin Posted July 6, 2004 Share Posted July 6, 2004 I forgot to say that I will be able to claim a small Dutch pension and that to will be taxed here. Link to comment Share on other sites More sharing options...
Stavros Posted July 6, 2004 Share Posted July 6, 2004 I forgot to say that I will be able to claim a small Dutch pension and that to will be taxed here. What would you expect if you decide to go Dutch! Stav. Link to comment Share on other sites More sharing options...
Observer Posted July 6, 2004 Share Posted July 6, 2004 I thought the whole point of double taxation relief was that you were not taxed twice (providing the source of those earnings was a country with which we have the agreement). Link to comment Share on other sites More sharing options...
crumlin Posted July 6, 2004 Share Posted July 6, 2004 A person from the IOM who holds a Manx Passport does NOT have the right to work in the EU, without a work permit or visa. It used to be stamped in the old Manx Passports. Link to comment Share on other sites More sharing options...
Observer Posted July 6, 2004 Share Posted July 6, 2004 I know that, but that is not related to double taxation agreements. Link to comment Share on other sites More sharing options...
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