UK Pension payments in Ireland

Vic_08

I've been asked for advice from an elderly relative as apparently I'm a tax expert (I'm not, I do my own taxes which are relatively straightforward but that's it).

I am sure tax is due but that's about my limit of certainty.

The situation is, up until recently the only income has been Irish state pension, currently €284/week and a small private pension of €76/month with no tax being paid.

UK state pension was applied for on the basis of employment for over 10 years. Was awarded partial pension in late 2024, currently £41/week (but paid monthly) as well as 2 lump sums of €5000 and €3000 covering back-date to 2022.

Has now received notification of deferred pension entitlement for the period preceding 2022.

They are offering options of additional weekly sum of £69/week on top of current £41/week or continuing with £41/week and payment of a lump sum of £33,500.

She wants to take the lump sum but was oblivious to the tax liability. Currently nothing has been done about the extra pension payments this year or last.

There is also the issue of tax liability in UK, If my quick reading of HMRC information is correct no UK tax should be due but I am not sure if that is correct or if just ticking the box on the return form to UK Pensions "Not Liable for UK tax" will suffice.

I have said it may require an accountant to deal with it but that is not a popular idea, if I can reasonably deal with it I myself I will, otherwise I will have to force the issue.

Any advice on what to do from here will be appreciated.