TAX

Hi folks, further to my post regarding receiving a letter from my building society asking me if i am a uk citiizen,which i recieved some good information, i am now after advice,We have lived here since 2007 but have only been resident since 2014,after listening to pub talk etc im afraid we have been wrongly advised regarding tax.We both receive a state pension from the uk and i receive a private pension from national grid which we thought were all taxed in the uk.we have savings of less than £10.000 also. my question is if any of you were now in this situation what would you do? i am a law abiding citizen and want to do what is right.any advice would be apprieated.

If you are a law abiding citizen then off you trott to a Fiscal Rep and ask him his advice.. If you are resident in Spain you should normally pay tax on your money in Spain...(but not in all cases) but ask your FR

As a resident in Spain you have the benefit of the police, the fire brigades, the health service, the road maintenance, the Spanish army and everything else... so you should contribute to your new home..it is only right.

Did you inform HMRC that you were moving to Spain? Look at their website. If the National Grid is a Civil Service type Pension you wouldn't pay tax on it in Spain but it has to be declared. You would just pay on your State Pensions and taxed on the other in the .U.K.
I would get in touch with HMRC first. Get that bit sorted out. We had a form from them to fill in which we
gave to our Fiscal Rep in Spain. The Spanish Tax year is Jan-Dec and you pay the Tax the following year June/July time so you are only about 1 year behind.
Best to find things out for yourself then you know it's correct. Things do change as well.

Thanks Janjan, a much better reply than the one above yours,i honestly can not remember if i told Hmrc or not there was that many people to inform,i will have a look at hmrc website and then go and see a Fiscal Rep many thanks for your reply.(National Grid is the new name for British Gas who i was with for 36 years)

I was wondering why you took 7 years to take out Residency if you were living here all the time. Technically speaking you should pay tax from when you came to live here permanently but see how it goes. Definitely contact HMRC first to make sure they know you are in Spain. Tell them you became Resident in 2014. It says you get a rebate for any money overpaid. If you decide to telephone HMRC I found first thing in the morning is best. Really early.

Cant really answer that really, getting settled,finding our feet listening to others (why do u want to be resident you might not like it here,) i know others who have been a lot longer here than i have and are under the same impression that you only pax tax in 1 counntry.

Unfortunately that's not the law. Everybody should sort out their Tax and Medical matters before moving to a Foreign Country. It will be easier if you can start from 2014. Good luck with it all.

QUESADALAD wrote:Thanks Janjan, a much better reply than the one above yours,i honestly can not remember if i told Hmrc or not there was that many people to inform,i will have a look at hmrc website and then go and see a Fiscal Rep many thanks for your reply.(National Grid is the new name for British Gas who i was with for 36 years)

Ignorance is no defence so don't knock what has been said get propper advice as you should have donre in the first place.

But good luck

Quite correct, you should only pay tax in one country. Unfortunately, it's the one where you are resident that you pay the tax so you should be paying tax in Spain and you don't really have a choice on which country you pay it to. Any tax you have paid in UK can be refunded as long as you can prove you have taken out residency and pay tax to Spain since then. It will go from the date your green residence card has on it.
Only certain government pensions are exempt this and that will not include a British Gas or National grid pension. Just things like police, armed forces, certain teachers pensions, civil service pensions and so on. They are taxed at source in UK and you can't change that so they come under the dual tax agreement.
As said a few times, contact a good fiscal advisor.
Be aware, as I mentioned before, the agreement for countries to share banking details between tax authorities comes in next year (2017). This is nothing to do with the EU either.

Taxmen to Share Details

QUESADALAD wrote:Thanks Janjan, a much better reply than the one above yours,)

You are asking advice.. I gave you good advice as has been said by several others... go see a Fiscal Rep.... you should have done this ages ago..


If you ask a question don´t grumble if someone gives you advice..

Have a lovely day..