Expat Money Newsletter - November 2016

Expat Money: Banking For Expats

Welcome to the Expat Money Newsletter for November. We are once again focusing on the personal finance issues that matter to you as an expat, or would-be expat.

In this month’s edition we focus on banking for expats, asking if you should consider placing your money offshore.

We also provide reminders that your tax and residence status is of great importance if you are to avoid paying unnecessary tax, and that premiums are falling on a contractors’ health insurance plan.

I hope you enjoy this newsletter. I welcome your thoughts on other topics you would like us to cover. Or do you have your own tale to tell or question to ask about expat money? Let me know.

Feel free to forward this newsletter to anyone who you think may benefit from reading it. Just click on Forward to a friend or colleague below.

Iain Yule

Editorial & Publishing Director
Expat Network
iain@expatnetwork.com

Banking For Expats 1: Need An Offshore Account?

The answer is, you may not. But most British expats will at some stage, if not throughout their time abroad, find offshore banking useful in a number of ways. First and foremost is the potentially huge tax saving you can make by placing your savings offshore. To take the example of Britons abroad, if you achieve UK non-resident status then you do not have to pay UK income tax on interest from your savings.

Banking For Expats 2: Keep Your Money Secure

In answer to a reader’s questions, an expat financial commentator believes that opening an offshore bank account is the most important step for any expatriate in managing their wealth, following the ABC rule. This means if you are from country A, but you live in country B, then you should bank in country C.

Sponsored: UK Tax Office Confirms Any Expat Income
Can Be Paid Tax Free

If you are an employed expat, or an employer with expat staff, you should be aware of the Flexible Trust Account (FTA). Why? Employers benefit as the FTA lowers staff costs whilst enhancing staff remuneration.

Employees benefit as the FTA takes gross contribution, grows tax free and allows tax-free and penalty-free withdrawals, so you keep more of your money and have greater control. As a UK approved scheme all money and investments are covered by UK regulation and investor protection.

Banking For Expats 3: Best Savings Rates

The best current offering for sterling offshore savers is Standard Bank’s 1.4%, if you have £10,000 and can give 196 days’ notice of withdrawals.

For dollars, Standard Bank pays 1% for $10,000 or more, with 196 days’ notice. Standard Bank is also best for euros, paying 0.15% for €10,000 or more, with 196 days’ notice.

If you want a monthly income from your offshore savings, the best offer currently comes from Skipton International. If you can give 200 days’ notice of withdrawals on a minimum deposit of £10,000, then an annual equivalent rate of 1.30% is paid monthly.

Sponsored: Save On Your Currency Transfers

If you’re one of the ever-growing army of British expats that has made the leap and started a new life in a another country, don’t fall foul of currency market volatility or the uncompetitive exchange rates offered by high street banks when sending your hard-earned money overseas.

Thankfully, help is at hand. Smart Currency Exchange offers a convenient and cost-effective alternative to defaulting to your bank.

Tax & Residence Rules For British Expats

You can still be liable for UK income tax even if you think you are safely non-resident. The UK’s statutory residence test is a welcome development after the old system, and provides much more certainty. However, for more complicated cases it can still be rather complex and it is important to understand the detail of the test.

Premiums Fall On Expat Contractor Health Plan

Insurance specialists Bellwood Prestbury have negotiated reductions of up to 25% on the Contractors International Health Plan for expats. The new rates came into force on 1 October and will deliver savings of 25% for contractors aged up to 49 years and 20% for anyone over the age of 50, the company say. The plan offers a range of medical insurance plans designed for expatriates working in the oil & gas, energy, aviation, engineering, security, NGO, humanitarian, telecommunications and technology industries.

Your Expat Money Questions Answered

If you have a question about your expat personal finances, don’t hesitate to drop us a line. Our expert expat money panel is ready to answer any questions you have. They recently assisted an expat reader with a query about moving to Canada.

New! Understand Insurance Cover For Expats

Expats should make sure they have the correct insurance cover in place – preferably before moving overseas. So, our new Insurance section explores the cover you will need in terms of travel, life, income replacement and death-in-service insurance.

Read Your Free Expat Living Magazine

The Autumn edition of Expat Living magazine is now available to read completely free of charge. You can learn about life in China and Italy, property purchase in North America, whether you are properly insured, and why an offshore bank account may be useful.

Questions On Expat Healthcare? New Help Here

A new website, www.expathealthcare.com, provides fully-independent answers to the many questions you may raise as an expat about making sure you are healthy - and have proper insurance cover - while overseas.

Expathealthcare.com is a resource you can use to find out all about healthcare and insurance cover for expats, what you need to know and where to find assistance.

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You will also find expert answers to the most frequently asked expat questions and receive regular news bulletins on contract awards and other expat news. Registration is free of charge – and you can unsubscribe at any time.