Saving from the Antarctic!

majr

Hello!
I'm in a pretty unusual position and I'm after so advice if at all possible. I work on a research station in the Antarctic, I have been here over a year now and will be back in the Uk in March 2008 so just over a year to go. I currently pay British Antarctic Tax at 7% on my earnings and have very little opportunity to spend any money. I have got an Alliance and Leicester account that I have managed to put £17k in over the last year and I am now putting in £1600 a month on top of this which will carry on untill I get home. I have done nothing at all with this money up to now but am now thinking I should!
I'd like some advice on what I can do bearing in mind I am on the other side of the world, any online options for someone in my position?
Thanks in advance for any help.
Mat.

tanith

I am sure lots of experts will be along to help you out but of course there are plenty of online cash ISA's for you to put £3000 in each year if you are quick you can put in £3000 now and another £3000 after April 5th but thats just a start.. what a nice position to be in and nothing to spend your money on sounds fantastic but I am sure it also has its drawbacks.... :rotfl:

EDIT: I forgot to say welcome to this extraordinary place... you will find so much help here .....

obsessed_saver

Opening new accounts might be tricky if they have to send you agreements to sign. Open a savings account with the highest interest rate, and then you have to tell the bank that you are not resident in the UK for tax purposes and fill in a form to declare that. Your interest shouldn't be taxed.

Ian_W

Tanith's right about the ISA's, one now and one after 5/4/07 but the only concern might be whether your your residential status allows you ISA's:
You can only open an ISA if you are resident and ordinarily resident in the UK for tax purposes. If you are unsure about this, call our Centre for Non-Residents on
* 0845 070 0040 (UK) or
* 44 151 210 2222 (from abroad).
See https://www.hmrc.gov.uk/leaflets/isa-factsheet.htm

I'm also a bit wary of whether when you're paying UK tax, albeit at very low special rates due to being in the Antarctic, you would be classed as a none taxpayer and qualify for gross interest - you probably need to find these out yourself.

One of the pains of opening accounts these days can be proof of ID for money laundering and located where you are this could be even more of one. However, A&L have a good payer [with a catch] in the DirectSaver at 5.8% so make sure that's the one your money is in or open it online and make sure that's where the bulk goes. The catch is no interest on any of the money in any month you make a withdrawal, the work around is withdraw all on 1st of the month - this shouldn't be too big an issue for you though.

EdInvestor

Is British Antarctica actually a country (surely not?) Are you perhaps thus classed as being resident in the UK? Or are you perhaps in the same position as those who live on British overseas army bases?

Chadsman

Dont put your lolly into cold storage or on ice.



...someone had to say it

manhattan

you could open an icesave savings account online by using your passport number.

Cook_County

EdInvestor wrote:

Is British Antarctica actually a country (surely not?) Are you perhaps thus classed as being resident in the UK? Or are you perhaps in the same position as those who live on British overseas army bases?

I agree with Ed. Antarctica is not a country, therefore it cannot be imposing tax on you. The details on the BAS website are confusing (http://www.antarctica.ac.uk/Employment/benefits/antarctica/) This "tax" is not imposed by a country so it is really a contribution to the UK government which for this purpose regards it as a tax.

If you are truly not UK resident then you can pay zero tax on interest by investing in Jersey, Guernsey etc so long as you close the account at least a day before returning to the warm sunny old country!

majr

Hello!
Thanks everyone for your replies. I have been down the ISA route, the online ones I have looked at all end up needing a sigature on paperwork sent to my home address, even when the application is online, maybe I am missing some that are truly online. Regarding tax, it is the British Antarctic Territory and I pay BAT tax on my earnings, if you think it's confusing on the web site, wait until they explain it! I'm a UK citizen but because I am out of the country for more than a tax year then I pay reduced tax, if I had only been out of the country 11 months or less then I'd have paid full UK tax. I will have a look to see if I'm eligable for zero tax on my savings as well.
Anyone else got any options, I know the online side of things is the problem, not what I could do with the money!
Thanks again for the replies, much appreciated.
Mat.

nrsql

It might be worthwhile getting someone in the UK to talk to an institution about the ISA. I had to call Yorkshire B.S. last year and they were easy to get through to. Maybe they can do something with a declaration from someone who knows you in the UK - feel a bit sorry for the person who has to deal with it.
How do you get mail over there? It might be considered a UK address for these purposes if it's considered UK tax.

I take it you've talked to other people you are working with?
Usually companies have advisors for this sort of thing. Are you on a research grant (3 years I guess). Try to find someone company funded who has access to advice and ask them (be careful though - I had a friend who took his companies advice when working in South Africa, came back to the UK instead of taking a months holiday and ended up paying both UK and S.A. tax on his years earings - company said sorry but it was only advice he made the decision).

EdInvestor

majr wrote:

I have been down the ISA route, the online ones I have looked at all end up needing a sigature on paperwork sent to my home address, even when the application is online, maybe I am missing some that are truly online.

Most UK banks won;t open accounts for non-residents ( though as you've found they don;t require you to close accounts you already have if you go overseas for a while).

You're probably best to look at offshore accounts, which will be automatically tax free.

http://www.moneyfacts.co.uk/offshore/bestbuys/default.aspx