Social security pension

hi
A couple of questions about my husband's social security from the US -  He is a UK citizen
Is it better to have it paid into an American bank account and then transfer it over to the UK  and then do we pay the taxes on it - I have read that if you're living abroad it won't be taxed? Is this true?
Also is it true that the treaty between the USA and Uk means that we only pay taxes once? Is it better to pay them in the US or the UK?
Thanks for all your help!

My wife is currently receiving US SS while living in the UK. It gets paid directly into our UK bank account and I don’t believe you can beat the exchange rate. She only pays UK taxes on it as per the tax treaty, no US taxes on it at all.

I agree. You get an excellent exchange rate, it goes directly into your account - so no fiddling with transfers/transfer fees, and It's only taxable in the UK. Or, rather, that amount above the personal allowance amount is taxable.  I haven't been there for a few years, but I don't think I paid very much at all to HMRC as my SS payment from the USA wasn't a lot over the personal allowance.

The one surprise I do remember was that the direct deposit came through, I believe, the Bank of Ireland into my Scottish bank. Don't know if it still would, since Brexit and all.

If you have it paid into a US bank, you can then choose the timing of when you bring it over to the UK. If you have it deposited in the UK, you are accepting the exchange rate as it is at the time.

Wise is the currency transfer company most of us use. Competitive rates, versatile and simple to use.

If you have it paid into a US bank, you can then choose the timing of when you bring it over to the UK. If you have it deposited in the UK, you are accepting the exchange rate as it is at the time.

Wise is the currency transfer company most of us use. Competitive rates, versatile and simple to use.

I have looked several times at how much Wise would have converted the money to on the day and it is always less. I use Wise often as my 2 US private pensions go into my US bank.  As you say, the advantage of having SS paid into a US account and transferring it later is that you would get more money if exchange rates are moving in the right direction.

It is still paid through the bank of Ireland, and comes through like clockwork at the start of every month.

I have looked several times at how much Wise would have converted the money to on the day and it is always less. I use Wise often as my 2 US private pensions go into my US bank.  As you say, the advantage of having SS paid into a US account and transferring it later is that you would get more money if exchange rates are moving in the right direction.

It is still paid through the bank of Ireland, and comes through like clockwork at the start of every month.

Yes, totally. You'll never get a better rate at that time but you do loose the element of control.

OP,  if the SS is going to be relied upon as income month to month, I'd have it paid in the UK but if you have other money to keep you ticking over then you could consider having it deposited in the US and bringing it over when you choose to.

Fantastic!
Thanks for all your help 

My SS benefit gets paid into my UK bank like clockwork on the 3rd of the month.  It comes from the Bank Of Ireland.

As far as paying into a US bank account first ... I used to do that with a part salary at one point, using the same argument that you can transfer when the rate is favourable.  But, if you ask me, it's a mug's game.  You're basically gambling on foreign exchange.

My SS benefit gets paid into my UK bank like clockwork on the 3rd of the month.  It comes from the Bank Of Ireland.

As far as paying into a US bank account first ... I used to do that with a part salary at one point, using the same argument that you can transfer when the rate is favourable.  But, if you ask me, it's a mug's game.  You're basically gambling on foreign exchange.

And you know the precise exchange rate, no having to go back and sort it out later...   My SS check was not huge - it was approximately "average" for a worker of my age, so a penny on the pound saved by my having the funds go to my US bank and then having to transfer them to my UK account was a moot issue.

My SS benefit gets paid into my UK bank like clockwork on the 3rd of the month.  It comes from the Bank Of Ireland.

As far as paying into a US bank account first ... I used to do that with a part salary at one point, using the same argument that you can transfer when the rate is favourable.  But, if you ask me, it's a mug's game.  You're basically gambling on foreign exchange.

I'm probably in the minority here, but I choose to have my SS paid into my Wise account  - it all really depends on where you want to spend it - I don't have to rely on it for day to day living and so allow it to accumulate. To go with my Wise account I got a Wise debit card ($7 one time fee)  so I can spend directly in US$ whenever I choose. Having a US$ debit card works well for paying for things like airline tickets, or accommodation in the US - or hotel points - which are always charged in US$ - IHG had a great deal recently with a 100% points bonus. I have a US holiday booked in September and it's nice to know that I don't have to think about the exchange rate - spending moeny already taken care of!