EK Provident Fund Delayed Payment

[Emma Royds]

I was catching up with a friend a few days ago who resigned from EK earlier this year and he informed me that he had to resort to contacting the financial regulator in the Isle of Man, (Isle of Man Financial Services Authority - IOMFSA) to help expedite payment of his provident fund and that he is aware of other former EK pilots doing the same. He mentioned that prior to their intervention, progress was painfully slow with communication with EK being rather challenging at the best of times! It seems as if after the IOMFSA got involved, the funds materialised shortly thereafter. While EK is not directly answerable to the IOMFSA, the trustees of the provident fund are.

I thought it may be beneficial to post this for anyone who has left recently, or is about to leave soon and may find themselves in a similar situation.

https://www.iomfsa.im/about/contact-us/
Chris Shimmin - Senior Manager - Pensions

Good luck!

[Fired600]

Thanks for the information. Hopefully wont be needed, however.........

[Desdihold]

Thanks for the information regarding the provident fund.

This is an important topic as many of my former colleagues [I left the company two years ago]are now exiting eK.

Keep the information regarding the provident fund coming , knowledge is power.

All the best to everyone and their families

[felixthecat]

What are the tax implications of the provident fund being received after you repatriate to the UK and become a resident? If it’s received after that date then could you be liable for UK tax on it?

[SpamCanDriver]

I'm sure lots of people myself included would like to know the answer to this.
Logically it shouldn't matter as the money was earned while working outside the UK. But logic and the tax man aren't good bed fellows

[Dropp the Pilot]

A few hundred pounds well spent with an advisor would set you at ease. I know of at least one case in a country with a similar tax regime where the unfortunate individual had his funds deposited after he arrived in country and as a result the money was considered as income in that year. That attracted a 55% tax rate. One surefire cure: park yourself somewhere outside the UK until your funds arrive in the UK. If you follow the funds in and declare your tax residency from the day of your arrival there will be zero tax owing.

[felixthecat]

My understanding is it’s not about the onshore/offshore it’s about if it is classed as income earned whilst resident or non resident. The provident fund is possibly not considered as yours until it is released to your personal account for tax purposes. Thus they could say you earnt it when you were resident if it arrives in your account after you arrive.
The trouble staying outside the U.K. is that with Covid it is pretty hard to stay anywhere other than your country of residence

[Sue Ridgepipe]

A few hundred pounds well spent with an advisor would set you at ease.
Probably the best advice you'll get here. Spend some money and get professional advice, it will more than likely work out a lot cheaper for you in the long run.