Old forgotten bank account, and Student Loans Direct.

[Gemmie 142]

I think it's very unlikely they'll charge you any penalties as long as you prove you were under the threshold. How long have you been in the US for? Have you filed a tax return here yet? If so, you can just send that as evidence of your income (or lack thereof).

I've been in the US for 6 months and haven't filed any taxes yet, so hopefully it will be OK.

Doghandler, I understand now. My dad had me all panicked. If we ever do move back to the UK, I would have to either pay the missing amount or work for an extra few years to get the State Pension.

Just wondering though, my SIL is 20 years old and has never worked or filed taxes. She is currently receiving Tax Credits because she had a baby when she couldn't afford it (planned). How is it that she is eligible? I thought if you didn't pay a certain amount of taxes, you weren't able to get anything like that (just like in the letter I recieved, even though I have paid taxes in the past).

Edited December 11, 2009 by Gemmie

[doghandler 2]

I think it's very unlikely they'll charge you any penalties as long as you prove you were under the threshold. How long have you been in the US for? Have you filed a tax return here yet? If so, you can just send that as evidence of your income (or lack thereof).

I've been in the US for 6 months and haven't filed any taxes yet, so hopefully it will be OK.

Doghandler, I understand now. My dad had me all panicked. If we ever do move back to the UK, I would have to either pay the missing amount or work for an extra few years to get the State Pension.

Just wondering though, my SIL is 20 years old and has never worked or filed taxes. She is currently receiving Tax Credits because she had a baby when she couldn't afford it (planned). How is it that she is eligible? I thought if you didn't pay a certain amount of taxes, you weren't able to get anything like that (just like in the letter I recieved, even though I have paid taxes in the past).

Hi

I think I've inadvertently now become the resident UK tax and social security advisor on this site! Lol, glad to be of help. Your dad did get you panicked for nothing about the NI letter!. Paying shortfalls in National Insurance contributions during anyone's lifetime is totally optional. They let you know what your contributions gaps are from time to time. As a UK citizen, even if you pay no NI contributions your entire life everyone still gets a basic lower rate non-contributions based pension anyway (and then there's pension credits but we wont' go into that!).

As for you SIL, you don't want to be bored to death by the tax system. Tax and National Insurance are 2 different things altogether. Tax credits are nothing to do with NI contributions and NI contribution based benefits like JSA. Tax credits are only given to people on a low income who have children. Entitlement is not based on how much you've paid into the system, just having a child and earning below a certain threshold is the criteria.

Now, if there are any UK citizens who have recently got their visa and are now resident in the USA, I hope you all claimed back the tax you paid during this financial year (since 5 April 2009). If you were working and paying tax between 5 April till when you left the UK and you earned less than £6045, you will get all the tax you paid back, if you claim it. If you earned more and paid tax, depending on how much tax you paid, you may be entitled to some of it back. If anyone needs any particular advice on that, PM me.

Christine x