Tuesday 15 October 2019

Your Questions: Will I still get my UK pension if there is a no-deal Brexit?

 

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Charlie Weston

Charlie Weston

Question: I worked in London as a nurse for years. Now that I am a pensioner I get a pension from the British government. If there is a no-deal Brexit what impact will that have on my UK social security pension?

Answer: Put your mind at rest. The governments of Ireland and Britain have guaranteed the continued payment of state pensions in the event of the UK crashing out of the European Union without a deal.

You are just like thousands of people living here who get pensions and other payments from Britain, while Ireland also pays people who live in the UK. A legally binding agreement has been signed by the two governments. Social Protection Minister Regina Doherty and her UK counterpart, Amber Rudd, the UK secretary of state for work and pensions, signed a convention last month to ensure the "reciprocity of social welfare rights and entitlements".

These rights currently exist under what is known as the Common Travel Area. Ms Doherty said: "Under the terms of the agreement, all existing arrangements, with recognition of, and access to, social welfare entitlements will be maintained in both jurisdictions.

This means that the rights of Irish citizens domiciled in Ireland to benefit from social insurance contributions made when working in the UK and to access social insurance payments if resident in the UK are protected." The deal has been ratified by the Dáil in the last week.

The Government had been planning for a no-deal Brexit, ahead of the March 29 Brexit deadline. All this means you should continue to have your pension paid by the British government in the event of a no-deal Brexit.

Question: I am a mature student studying for a masters degree in design. I have a few different freelance design gigs that I work at to keep the bills paid. I am a bit confused about my tax credits at the moment, because as it stands, my main job falls under PAYE, but I also have some project work that does not. I see myself working towards a scenario in the future where I am fully self-employed with my own design company. At this stage what is the best way to deal with my tax?

Answer: The most important thing is to be aware of your tax obligations for all and any income that comes from any non-PAYE income.

Be sure to check with Revenue where your tax credits lie, is the advice of the commercial director of Taxback.com Eileen Devereux.

Assuming they lie with your current PAYE employer, from there, any taxable income from freelance employment can be filed under your PAYE tax assessment, as long as you earn less than €5,000 net (after expenses), but not nil from your non-PAYE income.

This is done by submitting a tax return Form 12. If you earn over €5,000 in non-PAYE net income in a year, you must file your self-assessed taxes. In this case, you must register as self-assessed with Revenue and submit a Form 11.

However, if your gross non-PAYE income is more than €30,000, you will be regarded as a chargeable person, even if your income is less than €5,000 net.

A chargeable person for self-assessment purposes is a person who is chargeable to tax on income on their own account.

You mentioned that you would like to operate on a freelance, self-employed basis into the future. If none of your work falls under the PAYE income tax, you are obligated to file under the self-assessed tax system, Ms Devereux said. Again, you must register as self-assessed with Revenue and submit a Form 11.

You may be entitled to claim expenses and reliefs which will help limit your liability, meaning you pay less. The deadline for filing your taxes is October 31 the following year.

Question: I bought goods online from a trader in the European Union and arranged delivery without specifying a particular date. What are my rights?

Answer: Under the Consumer Rights Directive the product should be delivered within 30 days of you making the purchase. If the item does not arrive within this 30-day period, then you can contact the trader and ask that it be delivered at another date that is convenient for your, according to the Consumers' Association of Ireland.

If the item does not arrive within this new agreed time period, then you are entitled to cancel the contract and be refunded the full costs, including any delivery charges, by the retailer within 14 days.

You can also cancel the contract if the item did not arrive within the initial 30-day period and delivery within this time period was essential, such as ordering a wedding dress that did not arrive in time for the wedding.

The governments of Ireland and Britain have guaranteed the continued payment of state pensions in the event of the UK crashing out of the EU without a deal

Any taxable income from freelance employment can be filed under your PAYE tax assessment, as long as you earn less than €5,000 net (after expenses).

Irish Independent

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