Advice needed ???

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Sicknote
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Advice needed ???

Post by Sicknote » Thu Aug 14, 2003 2:30 am

Hi All
I am moving to finland in December and my problem is that i have an income/pension and i need to know should i continue have my money paid into my bank here (UK) or should i have it paid to my finnish bank account.And where should i pay my taxes in the UK or Finland or do i need to pay taxes ???
So if anyone knows of any local company (london/essex) that can advise me could you let me have their details

Many Thanks



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neil
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Post by neil » Thu Aug 14, 2003 8:56 am

Hi Sicknote,

Welcome to the group. Firstly, I guess you will have to pay taxes no matter where you are based. How much, depends on where. I would think it would be perfectly legitimate to keep your money in the UK and pay your taxes there as I am assuming that the taxes would amount to less there.

One interesting thing I found out the other day, is that it is now possible to get a 'Euro account' with some of the UK banks which means that you would be able to withdraw money here either inexpensively/for free.

If I were you I would go and speak to all the banks, explain your situation and see what they have to say.
Neil

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Hank W.
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Post by Hank W. » Thu Aug 14, 2003 9:14 am

OK,

Scenario A money = UK
Scenario B money = Finland

Well, scenario A begs you to prove you are able to sustain yourself to get a residence permit, so that might be a problem.

Also, how are you going to get to your money? Having an acct in Finland and having the money wired over will cost (in scenario B as well). Best option is to keep an addy in teh UK, get someone to maildrop the bills and have an UK credit card here.

They have a tax agreement between the UK and Finland but its going to be a hassle.

Scenario B then requires the money to appear, as not transferred with a carrier pigeon, gold ingots or something as medieval as a checque to a finnish bank. If that is possible, then you are all "Finnish" in the sense that you can get the Finnish bank cards, sort your residence etc and be a "Finn" and enjoy the taxes as a local.

You should see about the tax deals wheteher the tax will be taxed at the source and/or Finland. You could try ask at the finn-guild or the suomi-seura. There is a number of pensioners getting monies from abroad and all I hear is complaining.
Cheers, Hank W.
sitting here like a lemon looking for a gin.


Tom and Jerry

Post by Tom and Jerry » Thu Aug 14, 2003 10:22 am

Please, check this out, but I thought that you pay tax in the EU-country you live for half a year plus one day (most of the year).

This is a difficult area, but when you get your pension in the UK, it will be taxed there. If you also live in Finland, it may also be partly taxed in Finland. Directly or indirectly. At least there is a chance of paying double taxes.

At least there are regularly articles in the newspapers that Finnish people who moved to Sweden thirty years ago would like to move back to Finland, but they don't because the Kela rules on the payments of their pensions are not so clear or not explained clearly .


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tjawatts
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Post by tjawatts » Thu Aug 14, 2003 10:35 am

Is it just a pension or is there also a job? Is the move to Finland permanent or temporary?

If your move is temporary (less than a year I think) you remain ordinarily resident in the UK and pay taxes/NI in the UK. However, if it is permanent you become ordinarily resident in Finland (assuming more than 6 months is spent here per year).

The pension I would of thought would still be paid in the UK, but below is the tax position.

UK pensions and annuities

Tax position for non-residents of the UK

You are liable to UK tax on your UK pension, and your pension may also be subject to tax in the country in which you live. The same applies if your former employer has purchased an annuity for you from an insurance company, rather than paying you a pension out of a pension scheme.

You will not, however, be liable to UK tax on your UK pension if you live in a country which has a double taxation agreement with the UK which exempts UK pensions from UK tax. Where that is the case, and you make a claim for relief, the Inland Revenue will authorise payment of your pension without deduction of tax.

Under most double taxation agreements pensions are only taxed in the country where you are resident. There are, however, some exceptions to this. In particular, under many agreements pensions paid for Government service (including, for example, service in the armed forces) are taxed only in the country which is paying the pension.

If there is no relief available to you under a double taxation agreement, you may be able to claim personal allowances. Tax will normally be deducted from your pension before it is paid to you - whether it is paid by your former UK employer or by an insurance company. You may be liable to further UK tax if you are liable to tax at the higher rate.

If you were not resident in the UK when you were an employee, your pension from that employment may not be liable to UK tax in certain circumstances. For further information you should ask a Tax Enquiry Office or your Tax Office in the UK.

Check out the IR's non-residents information.

http://www.inlandrevenue.gov.uk/menus/non-residents.htm

Tony


Sicknote
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Post by Sicknote » Thu Aug 14, 2003 11:50 am

Hi All
Thanks for your replies,
Just a couple answers to some of your questions.I have been married to a finnish girl for 14 yrs :roll: and the move should be permanant,My pension has to be paid into an english bank i am now told by my company :cry:

Regards


stig
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Post by stig » Thu Aug 14, 2003 12:17 pm

The tax thing is weird. Very weird. My girlfriend (Finnish) works for an english company and commutes from here back over there for 1 week of the month. [1] She pays national insurance / social security in England which will apparently allow her to pull a state pension in either country (apparently.....) with her actual income tax she pays the tax in england and then the difference (Finnish income tax being more) to the Finnish tax authorities. [2]. This works out ok because she earns much more in England than she ever would in Finland.

I have no idea on the details of this, but if this situation sounds similar to you, pm me and I'll try and find out more.

[1] Which costs less than a monthly ticket to london on the train. (From the sticks).
[2] This has led to some extrememly fun times with the finnish tax office.... I'm thinking of writing a book.


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tjawatts
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Post by tjawatts » Thu Aug 14, 2003 1:14 pm

So you have it paid into an English bank account, best to let it accumulate over a while (if that is feasible) and transfer it in large lumps. Then you need to apply to the UK so you dont get taxed there and then contact your friendly vero office to work out how much you have to pay the government here.

Best of luck!

Tony


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