Receiving English and Irish retirement money

B

bluepaint

New Member
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Hello,

Someone I know has been receiving means tested Irish retirement and also receiving english retirement.

Can someone advise if there will be a large tax bill due or what the options are to be best financially prepared?
 
I am assuming this person lives in Ireland and worked in the UK for some time. In that case he may be receiving a UK pension which is being topped up by an Irish means tested part pension (as the UK pension rate is lower than the Irish).

If this is the case I suspect the income from both pensions (assuming this is the only income) would be well below any tax liability
 
Black Sheep said:
I am assuming this person lives in Ireland and worked in the UK for some time. In that case he may be receiving a UK pension which is being topped up by an Irish means tested part pension (as the UK pension rate is lower than the Irish).

If this is the case I suspect the income from both pensions (assuming this is the only income) would be well below any tax liability
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Hello,

The english payment is through a deceased spouse and it's been paid for a number of decades now.

As far as I know, this payment wasn't listed as income when means test was carried out at start of irish payment. How this happened, I don't know.

I believe the english payment is approximately 16k euro per year. I don't believe the Irish payment is reduced at all, I think it could be a couple hundred per week.
 
If the 16K has been omitted from the means test then that needs to be addressed and it may not be very pleasant. There may be a sizable claw back.
 
I suggest getting professional tax advice - it sounds on the face of it like the potential for a serious clawback and penalties
 
homer911 said:
I suggest getting professional tax advice - it sounds on the face of it like the potential for a serious clawback and penalties
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This is not a tax question, it's a benefits question. I know of one or two cases and in general DSP are more relaxed when it comes to clawback and penalties than Revenue are.


This kind of thing happens all the time. Sometimes it is cynical but quite often it is genuine ignorance. This person has to approach DSP and ask them how to level up.


DSP will facilitate a repayment plan by means of a reduction of the means-tested Irish state pension, probably without interest. An old person might even pass away before the repayment plan is complete, and it would be a charge on the estate.

bluepaint said:
Can a solicitor advise the best route to take?
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I don't think this is necessary. DSP negotiate with thousands of individuals every year directly about overpayments and underpayments.
 
It is a tax question if the income has not been declared though? Scale of tax owed might be small or nil depending on the level of tax credits available. Revenue has details of Irish pensions but not necessarily UK ones.
 
SW refund is only an issue if the ROI pension is a means tested one.

Widow/er or Surviving Spouse Pension is one for example, which can be based on having sufficent PRSI contributions; if you meet the criteria, there's no means test.

Tax however is assesable on all income.

Step 1: find out if ROI payment is means tested or not.

Step 2: check if correct tax is being paid.

Step 3: don't panic. If restitution needs to be made, and you make the correct approach the relevant authorities will work to resolve.

Assuming this is an error rather than fraud, no one is interested in putting a pensioner on the street or sending them to jail.
 
Thirsty said:
Assuming this is an error rather than fraud, no one is interested in putting a pensioner on the street or sending them to jail.
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100% agree.

I know personally of a child benefit claim that was a conscious fraud by a person who'd moved abroad with her daughter.

It eventually got detected ten years later and DSP treated it as an error and simply set up an interest-free repayment plan.
 
If the OP can find out from his friend if this Pension is a Contributory, Non Contributory, Widows, or even Private Pension we would be able to be more helpful. At the moment we are using guesswork.
It is unlikely that the DSP will discuss with anyone other than the pensioner
 
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