I was hoping someone in this community may have already applied for a NT code from the HMRC, as a non-UK resident, receiving a pension income paid from a UK pension.
I am a British National living and working as a financial advisor in New York, and a common area for me in our practice due to my expertise in UK pensions, is transfering existing/frozen/matured UK pensions into international versions of UK SIPPs for the tax benefits and flexibility for my clients throughout the US. Whilst this is all very straight forward, one area I cannot seem to get a clear understanding on, is how to ensure my clients can avoid emergency tax deductions/tax rebate or credit issues when receiving an income in retirement as a US resident, from the UK pension. I'm not a tax expert, but it is helpful if I can pre-empt likely tax issues by giving a step-by-step guide on what to do and when in such matters. I have such a format for checking NI contributions and topping up missed years which is useful to my clients, so avoiding any unnecessary tax deductions would also be a good thing for me to share.
I have heard applying for a NT code (effectively zero rate tax band) will ensure that the trustees of the pension can pay the underlying client gross, and thus avoid any HMRC tax claims, and pay the due tax in the normal way as a US resident. Does anyone have any experience of this, or know how a person can apply and register as 'NT' with the HMRC prior to receiving any income? Any information kindly shared, would be greatly appreciated. Thank-you.