Working Overseas - Saving Money in the UK... thoughts?
Discussion
I know quite a few PHers work overseas and presumably looking at some of the cars on here you guys save a bit of cash from the work you do 
I am moving to work in South Korea later in the year and hope to save around £500 a month from my job out there. I want to get the best return from the money as it'll be a car/travel fund for when/if I return to the UK
My questions:
1. What is the best account/method of saving the money? My ISA allowance will already be full from selling my car and not needing to buy a new one
2. What do you find is the best way of sending money back to the UK?
3. Should I even bother sending it home, or should I save it in Korea and avoid the low interest rate savings wasteland of the UK at the moment? Also I'll be out there for at least a 12 month contract so what about factoring in exchange rates as the rate seems to be fluctuating quite a bit at the moment.
Thoughts and experiences and also suggestions to spend it all on hookers/drink/fast cars etc appreciated
I am moving to work in South Korea later in the year and hope to save around £500 a month from my job out there. I want to get the best return from the money as it'll be a car/travel fund for when/if I return to the UK
My questions:
1. What is the best account/method of saving the money? My ISA allowance will already be full from selling my car and not needing to buy a new one
2. What do you find is the best way of sending money back to the UK?
3. Should I even bother sending it home, or should I save it in Korea and avoid the low interest rate savings wasteland of the UK at the moment? Also I'll be out there for at least a 12 month contract so what about factoring in exchange rates as the rate seems to be fluctuating quite a bit at the moment.
Thoughts and experiences and also suggestions to spend it all on hookers/drink/fast cars etc appreciated
v15ben said:
I know quite a few PHers work overseas and presumably looking at some of the cars on here you guys save a bit of cash from the work you do
I am moving to work in South Korea later in the year and hope to save around £500 a month from my job out there. I want to get the best return from the money as it'll be a car/travel fund for when/if I return to the UK
My questions:
1. What is the best account/method of saving the money? My ISA allowance will already be full from selling my car and not needing to buy a new one
2. What do you find is the best way of sending money back to the UK?
3. Should I even bother sending it home, or should I save it in Korea and avoid the low interest rate savings wasteland of the UK at the moment? Also I'll be out there for at least a 12 month contract so what about factoring in exchange rates as the rate seems to be fluctuating quite a bit at the moment.
Thoughts and experiences and also suggestions to spend it all on hookers/drink/fast cars etc appreciated
Is both your ISA i.e. cash and the shares ones full? (£10,200 in total), even if it is iirc you have a CGT allowance of 10k ish a yearI am moving to work in South Korea later in the year and hope to save around £500 a month from my job out there. I want to get the best return from the money as it'll be a car/travel fund for when/if I return to the UK
My questions:
1. What is the best account/method of saving the money? My ISA allowance will already be full from selling my car and not needing to buy a new one
2. What do you find is the best way of sending money back to the UK?
3. Should I even bother sending it home, or should I save it in Korea and avoid the low interest rate savings wasteland of the UK at the moment? Also I'll be out there for at least a 12 month contract so what about factoring in exchange rates as the rate seems to be fluctuating quite a bit at the moment.
Thoughts and experiences and also suggestions to spend it all on hookers/drink/fast cars etc appreciated
I have a feeling I will be the bearer of bad news here.
Once you leave the UK your tax free ISA allowances stop. If you leave 'officially' that is.
There are a number of options available, including off-shore accounts based in a variety of jurisdictions. Some of these will give you an option to hold investment funds with-in them as well.
Depending on your outlook, and you appear to have a short-term view of being away from the UK, you could consider a pure investment account, however most of these will want some form of commitment to invest over the medium term (5 years plus).
It may be more cost effective to source something locally when you arrive - you will be able to have a choice of currency - and see what you can get by way of flexibility for term and payment level. Less banking charges than bouncing cash around the world on a monthly basis.
Once you leave the UK your tax free ISA allowances stop. If you leave 'officially' that is.
There are a number of options available, including off-shore accounts based in a variety of jurisdictions. Some of these will give you an option to hold investment funds with-in them as well.
Depending on your outlook, and you appear to have a short-term view of being away from the UK, you could consider a pure investment account, however most of these will want some form of commitment to invest over the medium term (5 years plus).
It may be more cost effective to source something locally when you arrive - you will be able to have a choice of currency - and see what you can get by way of flexibility for term and payment level. Less banking charges than bouncing cash around the world on a monthly basis.
Not sure if you are only going offshore for a year or so that counts for HMRC. I think you need a two year contract to get offshore and there are a few other hurdles too. Give them a call they are actually very helpful.
If you live full time abroad you definitely can't do ISA's etc but not sure in your case.
If you live full time abroad you definitely can't do ISA's etc but not sure in your case.
Beardy10 said:
Not sure if you are only going offshore for a year or so that counts for HMRC. I think you need a two year contract to get offshore and there are a few other hurdles too. Give them a call they are actually very helpful.
If you live full time abroad you definitely can't do ISA's etc but not sure in your case.
Nearly.If you live full time abroad you definitely can't do ISA's etc but not sure in your case.
You are given options. Contract length does not come into it IF you sign the 'Leaving the UK' form -it has a number, of course, but I cannot remember it - and state it is your intention to leave the UK permanently. This has no affect on your ability to return etc.
The rules on working abroad IIRC kick in on at 6 months away, but to benefit from being away you have to be away more than +/- 275 days of the year, including travelling to and from the UK. So a year outside UK should preclude ISA contributions. However, the provider will rely on you telling them you are outside.
Not telling them and claiming the tax relief is BAD. However, so many do this and get away with it i suspect the checks are minimal.
FWIW keep up your minimum NI contributions. Costs pennies and may help out one day if the UK gets forced to accept it should transfer built up rights like other EU countries do and you lead the ex-pat lifestyle around Europe.
My choice for investment there would (if available) a local tracker for the Korean markets. Low costs, you'll be able to pick up news and info on it easily, local banks should carry a structure and simple to use.
Interesting thoughts here folks. My cash ISA is full but not a S&S ISA yet though I am looking to set one up. I would love to get £10,200 for my car but think it's unlikely 
I will have to check into the tax implications as I'll basically have a 1 year contract and be overseas for more than 12 months with travelling around/holidays after the contract etc. I could sign a renewal for another 12 months too. I also think the NI contributions are important so will check into the implications and the best way to make the payments too.
I wonder if HMRC read this forum
I will have to check into the tax implications as I'll basically have a 1 year contract and be overseas for more than 12 months with travelling around/holidays after the contract etc. I could sign a renewal for another 12 months too. I also think the NI contributions are important so will check into the implications and the best way to make the payments too.
I wonder if HMRC read this forum
Ben, get some proper advice on this. None of the above is fully correct and non residence in the UK is even more of a mine field than it was a couple of years ago.
This is HMRC's guidance on it -
http://www.hmrc.gov.uk/cnr/hmrc6.pdf
Generally speaking you will become non UK resident from the day after you leave the UK until the day you return to the UK. This is provided you are working outside the UK on a full time contract which spans at least one complete UK tax year and you keep your visits back to the UK below 183 days in any one tax year and 91 days on average per tax year over a maximum 4 year period. This is general advice and other factors such as family remaining in the UK and available UK home can come into play these days.
Gaines-Coopers and other cases has thrown a spanner in the works although HMRC do still concede that the full time contract for working abroad approach still works.
On the ISA front, you can invest in an ISA whilst resident but cannot make contributions whilst non resident. So any investments made whilst resident can remain in place. As for where you should be investing your money, this is a question for an IFA (it may not be worth your while of course but that's your call).
This is HMRC's guidance on it -
http://www.hmrc.gov.uk/cnr/hmrc6.pdf
Generally speaking you will become non UK resident from the day after you leave the UK until the day you return to the UK. This is provided you are working outside the UK on a full time contract which spans at least one complete UK tax year and you keep your visits back to the UK below 183 days in any one tax year and 91 days on average per tax year over a maximum 4 year period. This is general advice and other factors such as family remaining in the UK and available UK home can come into play these days.
Gaines-Coopers and other cases has thrown a spanner in the works although HMRC do still concede that the full time contract for working abroad approach still works.
On the ISA front, you can invest in an ISA whilst resident but cannot make contributions whilst non resident. So any investments made whilst resident can remain in place. As for where you should be investing your money, this is a question for an IFA (it may not be worth your while of course but that's your call).
Edited by LC23 on Friday 7th May 20:12
LC23 said:
Ben, get some proper advice on this. None of the above is fully correct and non residence in the UK is even more of a mine field than it was a couple of years ago.
This is HMRC's guidance on it -
http://www.hmrc.gov.uk/cnr/hmrc6.pdf
Generally speaking you will become non UK resident from the day after you leave the UK until the day you return to the UK. This is provided you are working outside the UK on a full time contract which spans at least one complete UK tax year and you keep your visits back to the UK below 183 days in any one tax year and 91 days on average per tax year over a maximum 4 year period. This is general advice and other factors such as family remaining in the UK and available UK home can come into play these days.
Gaines-Coopers and other cases has thrown a spanner in the works although HMRC do still concede that the full time contract for working abroad approach still works.
On the ISA front, you can invest in an ISA whilst resident but cannot make contributions whilst non resident. So any investments made whilst resident can remain in place. As for where you should be investing your money, this is a question for an IFA (it may not be worth your while of course but that's your call).
Spot on.This is HMRC's guidance on it -
http://www.hmrc.gov.uk/cnr/hmrc6.pdf
Generally speaking you will become non UK resident from the day after you leave the UK until the day you return to the UK. This is provided you are working outside the UK on a full time contract which spans at least one complete UK tax year and you keep your visits back to the UK below 183 days in any one tax year and 91 days on average per tax year over a maximum 4 year period. This is general advice and other factors such as family remaining in the UK and available UK home can come into play these days.
Gaines-Coopers and other cases has thrown a spanner in the works although HMRC do still concede that the full time contract for working abroad approach still works.
On the ISA front, you can invest in an ISA whilst resident but cannot make contributions whilst non resident. So any investments made whilst resident can remain in place. As for where you should be investing your money, this is a question for an IFA (it may not be worth your while of course but that's your call).
Edited by LC23 on Friday 7th May 20:12
v15ben said:
MrSpike said:
Ben what's your email? My company deals with such things, and I'm based in Asia myself.
YHM through your profile Michael. Thanks.But watch out for Investment companies when you become an ex-pat, they are like sharks to fresh meat, and there are some dodgy outfits about.
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