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Tax On Pensions


FCMR

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If a person with a British NI number worked in the EU that would be ok as the British Government has its house in order regarding its own people who work abroad. British NI holders can claim tax rebates from the EU countries but those with Manx NI numbers cant unless the law has changed.

To give you an example, if a Manxman was working on the black on the IOM for several years, all he has to do when he decides to go straight is tell the Taxman and the DHSS that he has worked in the south of Ireland and paid his tax and NI over there and they would have no way in checking it out. So they then rely on that person to declare an income from Ireland, he then gets double tax rel. and taxed on the rest.

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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.

Isn't this because we are not an EU state. After all its only fair, anyone from the EU or anywhere else for that matter needs a permit to work here.

 

The lack of EU benefits only affects less than half the Manx population and when you look at the amount that would actually go to Europe and miss out on benefits it would be a very small percentage of the overall population of the Island.

 

 

All that aside I spoke to our firms tax consultant today ref this and was advised that FMCRs compadre should fill in a UK tax form and he will recieve all the tax he has paid as a refund. I was also told that there may be a time limit on claim but he wasn't sure of the length of time in the UK.

 

Geo

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I'm not quite sure what you're getting at - but the double taxation relief theory is that your affairs are taxed at the source of income, you complete a return in the country the income was generated and any allowances etc for that country are applied (possibly at a higher non resident rate, but not always the case). When you return, you complete your tax return in your country of domicile and they too apply your tax allowances etc and you are not taxed twice and may even be eligible for a rebate. This does not just apply to EU countries, for instance we have a double taxation agreement with Australia.

 

I'm not quite sure that we're singing from the same hymn sheet Crumlin.

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Does anyone actually own one of those cases? Suitcases are strange things, often you never quite know where you got them from - a bit like all those wire coat hangers.

 

Crumblin - were you being taxed at a very favourable rate in the country you were working in??

 

Anyway, I'm pretty sure the chap/chapette whose pension is being heavily taxed can complete a UK return and get a rebate.

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Does anyone actually own one of those cases?  Suitcases are strange things, often you never quite know where you got them from - a bit like all those wire coat hangers.

I have a few suitcases like that. Whenever I'm at the airport, I just pick one up from the carousel. The stuff that other people have in their cases is usually a lot better than the stuff that I have in mine. Mine always needs washing and I'd rather leave that and have a refreshing change.

 

After all, where did you think I got that dress from?

 

Stav.

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