What to do with savings whilst abroad?

atush

lisyloo wrote: »

True but some people do need to appreciate that the majority of great unwashed don't even understand the basic concepts of investing.
Unfortauntely these people can't just go to the finance industry because they'll have a reasonable chance of getting ripped off e.g. endowments, pension mis-selling etc.

I was once one of those great unwashed. But fortunately I found the shower lol. I was stuck at home with twins in nappies and inbetween building a house I learned up.


With a computer, the internet, and patience to read, you can become one of the great Washed instead.

atush

For those in HK, HSBC is where to go. Once you have a good relationship there, and some deposits, look at opening a UK acct that is linked online (I have 3, uk, USA and euro).


If Thailand has HSBC, then look there as well.

gfplux

You will find it next to impossible to open any new Bank accounts directly in the UK. Without proof of a UK address plus utility bills it will not happen.
Anyone thinking of leaving the UK for any lenth of time should open a few accounts before leaving to have some flexibility in the future.
At least it is not as bad as it is for expat USA citizens who now find it almost impossible to open bank acounts anywhere due to the FATCA(t) legislation.

fdlchris

brasso wrote: »

If you add to an ISA, or open an ISA while abroad, you run the risk of HMRC insisting that you are liable to pay UK tax.

I won't be in the UK when the new tax year starts. I want to add some of my new capital to an existing ISA account while I'm overseas.


What if I give my friends or family hard cash of mine to put into their account now, and then when the new tax year starts, they write a cheque of that sum I gave them to put into my ISA account? That's not technically me adding to my own ISA and surely I can't be responsible for a third party adding to the account while I'm away?


I checked with my bank and they said that e.g. that someone else can pay "their" money into my ISA, no problem. A cheque from their account addressed to mine would suffice.

innovate

fdlchris wrote: »

I won't be in the UK when the new tax year starts. I want to add some of my new capital to an existing ISA account while I'm overseas.


What if I give my friends or family hard cash of mine to put into their account now, and then when the new tax year starts, they write a cheque of that sum I gave them to put into my ISA account? That's not technically me adding to my own ISA and surely I can't be responsible for a third party adding to the account while I'm away?


I checked with my bank and they said that e.g. that someone else can pay "their" money into my ISA, no problem. A cheque from their account addressed to mine would suffice.

You do not have to be in the UK for the start of a tax year in order to be eligible for an ISA. What counts is whether you are a resident. If you are unclear whether you are a resident or not, ask your tax office. Don't try to outsmart the HMRC for the sake of a few quid because it will cost you dearly.

The HMRC will know of every penny that gets paid into an ISA, and they will see whether you pay tax in the UK. Also, you might find that your ISA provider doesn't allow deposits from third parties into adult ISAs.
http://www.hmrc.gov.uk/isa/faqs.htm#14

fdlchris

innovate wrote: »

Don't try to outsmart the HMRC for the sake of a few quid because it will cost you dearly.

Not trying to outsmart anyone. However, from what I've heard, you can't add money into your own ISA if you are not in the country, as it specifies in the link you've given. What it doesn't say, is that someone else is not allowed to put money into your account. They cannot be held responsible because they are not in control of whether I am in the country or not, and I am not responsible for their actions in putting money into my account.

Also, you might find that your ISA provider doesn't allow deposits from third parties into adult ISAs.

I went to the branch and asked them face-to-face. They even double-checked it with a manager. Someone else can pay one of their own cheques into my ISA account. Whether my account goes over the threshold tax-limit is my responsibility but the main point is, is that they can add money to it, and there's nothing to stop them doing this while I'm abroad. And yes, it's an adult ISA as I clearly look over the age of 18.

innovate

You are trying to outsmart HMRC, with a totally ridiculous argument. It doesn't matter where in the world you are, you are still responsible for your accounts. It also doesn't matter where in the world you are, you have the technical ability to pay into your account, incl your ISA (ever heard of faster payments and the internet?).

Feel free though to proceed with your ridiculous plan - HMRC will pick you up before long.

fdlchris

innovate wrote: »

It also doesn't matter where in the world you are, you have the technical ability to pay into your account, incl your ISA (ever heard of faster payments and the internet?)..

I don't think you've quite fully understood the point I made. Yes, I can pay into my accounts including my ISA from anywhere in the World. The argument is, I'm not supposed to.

However, it doesn't stipulate that someone else who is in this country cannot pay money into your account. So, this can be done while I am away.

atush

You May NOT pay new money into an existing ISa once you are no longer resident in the UK for tax purposes. It is illegal.

innovate

fdlchris wrote: »

I don't think you've quite fully understood the point I made. Yes, I can pay into my accounts including my ISA from anywhere in the World. The argument is, I'm not supposed to.

However, it doesn't stipulate that someone else who is in this country cannot pay money into your account. So, this can be done while I am away.

I have very well understood the point you made. The one that does not understand is you. You are using a ridiculous argument to try and con HMRC out of a few quid. HMRC couldn't care less who paid the money into your account and will take appropriate action if there are subscriptions into your ISA whilst you are not a resident.