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Topic: SS Payment and HMRC  (Read 227 times)

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SS Payment and HMRC
« on: January 20, 2022, 12:29:33 PM »
I had been asked by a recipient of Social Security in the U.K what figure to put on their HMRC SA when it comes to Social Security income. As i'm not at the SS stage, so I thought i'd ask how others in the U.K how they report that figure to HMRC on their SA.

Would it be the monthly figure that is paid into their U.K bank? Or would you somehow take the SSA-1042S total and divide the USD amount to fit in with the U.K April to April tax year and use an average exchange rate?

On the flipside as a U.K resident receiving SS and the amount was paid into a U.S. bank account, how would that work? Would you report the monthly USD amount that lands into your U.S. bank? Or if you transferred 100% of the monthly SS to a U.K bank account would you then state the GBP figure physically received? With the transfer fee's from the International Banking system, you'll always receive less into your U.K bank then what the SSA-1042S reports

I suppose the same could be said for IRA /401(k) & U.S bank interest that is paid directly to a U.K or U.S bank.


Thanks


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Re: SS Payment and HMRC
« Reply #1 on: January 20, 2022, 04:23:43 PM »
I always use the gross figure in dollars and the HMRC published exchange rate to calculate the value in £s.  HMRC don't care what fees I paid to move the money over as I am being taxed on what I receive at source.  I have been doing this for the last 5 years with my US pensions plus monies I distribute from US IRA accounts.

From the very start I have been reporting my US income on a calendar basis, which is stated in the comments section on my Self Assessment.  This makes reporting very easy as I can simply enter the annual totals from my W-2 and 1099-Rs.  If your friend has not yet been reporting US income he could take that option, but you can't chop and change.

My wife starting receiving her SS this year so that is what I intend to do even though it has being paid direct to her UK bank.  When we get the SSB statement I will enter the total in dollars, converted into £s using the HMRC exchange rate.
« Last Edit: January 20, 2022, 04:26:43 PM by durhamlad »
Dual USC/UKC living in the UK since May 2016


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Re: SS Payment and HMRC
« Reply #2 on: January 20, 2022, 07:43:29 PM »
I always use the gross figure in dollars and the HMRC published exchange rate to calculate the value in £s.  HMRC don't care what fees I paid to move the money over as I am being taxed on what I receive at source.  I have been doing this for the last 5 years with my US pensions plus monies I distribute from US IRA accounts.

From the very start I have been reporting my US income on a calendar basis, which is stated in the comments section on my Self Assessment.  This makes reporting very easy as I can simply enter the annual totals from my W-2 and 1099-Rs.  If your friend has not yet been reporting US income he could take that option, but you can't chop and change.

My wife starting receiving her SS this year so that is what I intend to do even though it has being paid direct to her UK bank.  When we get the SSB statement I will enter the total in dollars, converted into £s using the HMRC exchange rate.

Thanks Durhamlad...

So did you need to make a prior election and gain approval with HMRC so as to make a calendar year reporting, (write or call them)? Or did you simply just add a comment on the SA?

Do you use an average exchange rate from HMRC?

Yes, a very simple option and really does sound the best way forward.


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Re: SS Payment and HMRC
« Reply #3 on: January 20, 2022, 08:07:47 PM »
Thanks Durhamlad...

So did you need to make a prior election and gain approval with HMRC so as to make a calendar year reporting, (write or call them)? Or did you simply just add a comment on the SA?

Do you use an average exchange rate from HMRC?

Yes, a very simple option and really does sound the best way forward.

I also report SS on a calendar year basis to HMRC. I simply add it on the "any other information" section each year. No prior election. Yes, i use the average exchange rate from HMRC to figure the Sterling value.


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Re: SS Payment and HMRC
« Reply #4 on: January 20, 2022, 08:42:18 PM »
I also report SS on a calendar year basis to HMRC. I simply add it on the "any other information" section each year. No prior election. Yes, i use the average exchange rate from HMRC to figure the Sterling value.

Same here exactly.
Dual USC/UKC living in the UK since May 2016


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