"Many believe that if you’re not living in the UK then you don’t have to pay any taxes to the UK government, however, this isn’t true"
When moving abroad, it’s important to make sure that you keep your finances as stable as possible, to ensure an easy transition and a financially stable life in your new home.
Overseas property experts from YourOverseasHome.com have highlighted five ways to ensure that your finances are stable when moving abroad, from the banks that you choose to tax obligations and even exchange rates.
Christopher Nye, senior content editor at Your Overseas Home, commented: “When you move abroad, your finances are one of the things that you need to ensure are as stable as they can be, and that they don’t get hindered by your move.
“We’ve highlighted our top five tips for keeping your finances stable when you move abroad, from speaking to HMRC before you make the move, to looking at exchange rates and conducting thorough research on local banks.”
Your Overseas Home has highlighted five ways to ensure your finances are stable when moving abroad:
Be aware of any tax obligations
Many believe that if you’re not living in the UK then you don’t have to pay any taxes to the UK government, however, this isn’t true. When it comes to income tax, once you’ve moved abroad, it will depend on your personal circumstances, how and where you’re being paid, where your financial assets are and if you’re working. On top of this, you may also still have to pay your national insurance.
Before you move abroad, fill in a P85 form from HMRC and be sure to include parts of your P45 form, so that HMRC can tax you the correct amount once you’ve made the move.
Making a profit on your UK home
If you’re moving abroad but not yet selling your home, you may be one of the many who decide to add their property to the UK rental market. However, it’s not as simple as this: if you plan on living abroad for more than six months of the year, you’ll be classed as a non-residential landlord and therefore must join the Non-Resident Landlord Scheme.
This scheme allows tenants and letting agents in the UK to pay tax on behalf of the landlord who is living abroad.
Keep hold of your UK bank account
Once you’ve moved abroad, you want to ensure that you’re not cutting off all of your ties with your bank in the UK. If you have property, or any other financial obligations in the UK, keep your UK bank account for any payments to do with these.
On top of this, it’s always a good idea to keep some of your savings in a UK bank account that you’ve been using for a long period of time and that you trust.
Research foreign banks before applying
Before opening up a bank account in the country that you’re moving to, you want to make sure that it's going to be the right bank for you. In the weeks running up to the big move, do your research to find which local bank is right for you. There will be so many different banking options, but make sure you look into each one carefully to ensure that you’re putting your money in the right place.
Don’t forget about exchange rates
Once you’ve moved abroad, you’ll find yourself transferring money across from your UK bank account to your new local bank account, and vice versa. However, it’s important that you keep up-to-date with exchange rates so that you don’t end up losing money when transferring it between your accounts. To ensure that changing exchange rates don’t ruin your budgeting, talk to your currency company about locking in your rate with a forward contract.
