Gevans

Hi Gary C, Thank you so much for your very helpful comments on this thread and others – they are a fantastic help. I have a friend: UK-resident, British, 70+, Married, who has just been awarded a EUR1900 p.a. standard German State Pension, for the 5 years he studied/worked there in the 1970’s. Other than that he has solely UK-income (UK State Pension and drawdown). I’m trying to estimate what tax he will owe in Germany but am stumped and cannot find a Tax Calculator that covers his circumstances. He will apply for automatic assessment by the RiA, but would like to know how much money to hold back to cover his German tax liability (He will opt for DD, as you have suggested to others). a) I think he will be “Limited Liability”, hence pay tax in Germany only on his German pension. The RiA forms seem to imply that Limited Liability folk can only be taxed as Single, not as a Married couple. Am I correct so far? b) Will the RiA will take ONLY his German pension income into account when calculating the tax rates to be applied, or will they ask him to submit his other worldwide income (in his case just UK) and use his total worldwide income to determine the tax rate? (The RiA forms seem to imply he won’t need to state his non-German income if he’s Limited Liability). c) As a non-resident, I think he’ll not be allowed the zero-rate EUR 0-11,604 band (“personal allowance” in UK-speak). As his German income doesn’t reach the next band up (14% to 42%) I assume they will just apply 14% to his EUR1900 p.a. German pension? So he will owe tax of EUR 1900 x 14% = EUR266 p.a.? Does that sound correct ? (I’m assuming worldwide income doesn’t come into it, in his case. If it does, his tax rate would be nearer 42%). I’m aware there is a general German tax allowance of EUR100 ish, but don’t know where this fits in, or whether it is applicable in his case. I also read elsewhere a comment that non-residents can use the "Personal Allowance" for half your pension income – I’m assuming that comment is incorrect (for my friend’s circumstances anyway). d) I think he should not have to pay any German Social Security contributions or levies as he is permanently UK resident and covered by UK NHS etc. e) I haven’t been able to figure out whether there is a Widow’s pension entitlement associated with his standard German State Pension, and if so whether it is optional, would require contributions, and what the amounts would be. Very many thanks for any comments, hints, or tips.