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Pension from uk

My client started receiving UK pension in 2018. He did not received any tax receipt. Only info he has, his bank statement with direct deposit. Should he file his tax based on bank statement or he need to get a proper tax receipt from UK pension department?

You only need a proper receipt if there are any foreign tax credits involved as the CRA will want proof of taxes paid. Otherwise just use the bank deposits.

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Just use the bank deposits as suggested. I did this quite often for foreign pensions at work. Some US pensions aren’t taxed 100%. Some are exempt

I have clients that receive a UK pension and we use their bank deposits as the UK does not submit any forms like our T4A’s for example.

The Bank deposit recording/reporting method will only yield lawful reportable amounts if both of the following are true:

  1. No foreign tax was withheld
    and
  2. All and every pension entitlement for the calendar year was actually remitted to Canada and received in the year.

The payor pension administrator will be able to provide the UK tax (exemption or deduction) code they used in the year, along with the amount of tax withheld and remitted to HMRC.

So if my client can’t provide the pension administrator information for the UK pension, do I use the number the client provides or report nothing or tell the client I can’t do their taxes? My solution has been to report the numbers the client provides.

Of course the client can provide… But if the client says they cannot provide, it means they don’t want to tell you. (and so you thus have a client who appears to not be honest and forthright with you, and therefore this should be carefully evaluated.) :frowning:

The money is not falling from the sky - the client knows very well exactly where the money is coming from…
The client would have had to tell the administrator their current address, their current bank account, and be communicating with the administrator every year for proof of life verification…

Foreign pensions in different unfamiliar languages - now that is sure pesky, and one needs the client to assist, and good old Mr. Google Translate… :grimacing:

This is the contact information for UK Government Pension.

General Enquiries Email. No personal information.
tvp.internationalqueries@dwp.gsi.gov.uk

Forms
Remember to include - Form IPC 1394 for bank deposit details.

Correspondence for initial application:

The International Pension Centre
IPC FR7
Tyneview Park
International Pension Centre
Newcastle upon Tyne
England
NE98 1BA

“Change of Circumstances” correspondence seems to be handled by:-

The Pension Service
Tyneview Park
International Pension Centre
Newcastle upon Tyne
England
NE98 1BA

Processing set-up for forms and missing information:-

The International Pension Centre
IPC FR7
The Pension Service 11
Mail Handling Site A
Wolverhampton
WV98 1LW
United Kingdom

Included as Reference - Full name, address, and UK State Pension Reference Number

Pension benefit statements on an accrual basis is sent by:-

UK Department for Work & Pensions
International Pension Centre
FR9
The Pension Service 11
Mail Handling Site A
Wolverhampton
WV98 1LW
United Kingdom

Calling from Canada
Code is +44 191
T: 218-7777
F: 218-7021

"Statement of benefit payments made"
This statement is reported on an accrual basis based on 53 weeks.
Pension benefits appear to be fixed at a single lifetime weekly amount and remitted bi-week or every four weeks depending upon the actual amount. Therefore cash basis payments vary.

Columns
Type of Benefit = State Pension
From = 01/01/ YYYY, except for first year,
To = 31/12/YY, except for year of death.
Number of weeks = 53
Weekly amount = as per the statement
Total equals = as calculated and reported in the statement

State Pension Diferral Form goes to
IPC FR7

The correspondence for UK State Pension Deferral Lump Sum Calculation is sent by
UK Department for Work & Pensions
International Pension Centre
IPC SPD Team
The Pension Service 11
Mail Handling Site A
Wolverhampton
WV98 1LW
United Kingdom

I am in mid reconciliation for
1 - the lump sum payments for the pension deferral
2 - the weekly benefits on a cash basis per the Pension Statement vs the amounts deposited in CAD.

Arrgh.

Then I need to ask for a refund of the taxes withheld at source in error since the Tax Residency is Canada.

So, yes, there are statements. They are some value. However they are stated on an accrual basis for a 53 week calendar year. We need to state them on a cash basis for the amounts issued in the currency of origin and restated in CAD. I just go off the client’s bank statements in CAD and match the accrual amounts for reasonability.

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Some countries issue actual slips. For example Hungary does.

Hi,

I’ve done plenty of UK pensions. There are some traps.

First, according to the convention, they are 100% taxable in Canada. This means you have to get your client to call HRMC and have their tax code changed so that no tax is deducted from the pension.

Second, you will not get any credit for any taxes paid to HMRC for any tax deducted from UK pensions. You or your client will have to file returns with the HMRC and claim taxes paid on the UK pensions in Canada as a FTC on the UK return and have HMRC refund them to your client.

Third, there are slips issued from pensions in the UK but they are based on a very dumb year end that is not December 31. So as mentioned before, get the pension deposits off the bank statements.

Hope this helps, if not a little late

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Does anybody have similar information on US pensions?

@cory

There is a very convoluted was to get the UK taxes withheld in error to be refunded. I am working on the forms next week. I will post in the forum next week Wed.

US Social Security Pension Income

The contact info for this should be on US Social Security + IRS sites.

The rules have changed a lot in the past 20 years and will vary based on citizenship.

I am working on USA 1040 Alien later in June. Will post what I can at the end of June.

Thank you. I will wait