Non UK resident - income tax
Discussion
It's been donkeys years since I have done this, and no doubt everything has now changed.
I have googled it and looked on HMRC web site but can't find anything useful.
I have to pay a pension for someone permanently living in Malaysia. Is there a form to complete to send to HMRC for them to declare this and enable me to pay the pension without deduction of UK income tax?
Many thanks.
I have googled it and looked on HMRC web site but can't find anything useful.
I have to pay a pension for someone permanently living in Malaysia. Is there a form to complete to send to HMRC for them to declare this and enable me to pay the pension without deduction of UK income tax?
Many thanks.
As I understand it, the pension will be payable under PAYE. The pensioner needs to do the legwork with HMRC, and they are only able to receive the pension without deduction of UK IT if there is a Double Taxation Agreement in place with Malaysia. The pensioner then needs to obtain the relevant form from HRMC (on their website - can't remember exact code right now, but it is there somewhere if you search).
This form then needs to be validated by Malaysia's Tax department, to confirm that the pensioner will suffer Malaysian tax on this pension, under the terms of the DTA in place. This will then be sent on to HMRC. You will then receive the correct PAYE coding from HMRC to enable you to make the correct deductions.
You will have a major problem getting the Malysian tax authorities to valdate anything, if retired he is here on the MMH2 scheme and is not liable to Malysian Tax on any income 'earned' outside Malaysia, so unless he has a part time job the Malaysian tax athorities wll have never heared of him, his visa will have come from the immagration dept, if you get them to communicate witht the tax authorites please post it up as I've been trying for nearly 20 years.
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