New Expat looking to save

IntriguedGirl

Hi,
I am a fairly new Expat who will be able to pay off all my UK debts by the end of next month (yippee and phew!) and once these have been paid, I will be looking to save money.

As there is so much information out there regarding different ways to save, I have got myself all confused and would like some advice please.

I currently have a santander account, this was a 123 account which I converted to a standard current account before I emigrated (due to no longer paying utility bills, council tax etc.) however, I have seen that there is a 3% AER on this. Would it be better for me to reconvert this account back to a 123 account and just use this to save money?
I will be looking to only save £2000 a month, so would it be beneficial to spread my savings, i.e. £1000 in santander and £1000 in an ISA/Savings Account etc?
And that's another thing, would I be best opening an offshore savings account or having an ISA in the UK or even a savings account (which would be subject to tax!) I've even been told to consider the post office as well as premium bonds. It really does seem like a mind field.

If there is any advice that could be given, I would be really grateful! I'm coming back to the UK in a few weeks so if anything needs to be done in person I can arrange appointments.

Many thanks

Vic

Your_Hero

Hi,

Can you elaborate on your residential status? Are you going to return to the UK permanently in the future?

As I understand it, if you are an expat you cannot open a new ISA (i.e. Pay in new money) since you aren't a UK resident but you can keep existing ones.

Expats' financial situation is relatively complicated and normally should seek proper advice for it. Generally speaking, offshore accounts should be most beneficial to you. But questions to consider would be:

What would you be saving for? What term were you thinking? What's your appetite for risk?

Have you got a pension? Would you like to continue saving in a pension?

Jonbvn

OP,

Having been an expat myself, I would advise that you will not be able to open new accounts in the UK, without a UK residential address.

ISA's are not allowed for non-residents.

Be very careful with your UK tax residence status, which now comes under the HMRC statutory residence test.

barak

IntriguedGirl wrote: »

I am a fairly new Expat.....Would it be better for me to reconvert this account back to a 123 account and just use this to save money?

If there is any advice that could be given.....

Vic

If you are now living abroad, whatever else you do, don't close any UK bank account you have open at the moment, as you may find it impossible to open another one without a genuine UK address.

[as Jonbvn has just posted!]

IntriguedGirl

Thanks for your comments, I'm looking to move back to the UK in roughly 5/6 years so looking to save for a deposit on mortgage (as I would struggle on applying for a mortgage now).

I am currently using my parents address as my UK contact address and I have informed HMRC by sending them a P85 form.

My appetite for risk is quite high, and I did consider maybe getting an advisor to open an investment savings plan, however I don't want to pay into that for a minimum 5 year term when I'm only looking at an approximate 5/6 year length of stay over here (I emigrated only 4 months ago). I'm also currently in the process of having my pension transferred to a QROPS.

Thanks

barak

IntriguedGirl wrote: »

.....I am currently using my parents address as my UK contact address.....

That will serve as a correspondence address, but to open a new UK account a bank would want evidence of your residence in the UK such as a utility bill in your name.

Just make sure you keep any account you have in the UK open!

Archi_Bald

barak wrote: »

Just make sure you keep any account you have in the UK open!

and use the bank statement you can get for it as proof of address :cool:

Jonbvn

IntriguedGirl wrote: »

I am currently using my parents address as my UK contact address and I have informed HMRC by sending them a P85 form.

Please ensure that you fully satisfy the requirements of the statutory residence test.

http://www.hmrc.gov.uk/international/rdr3.pdf

bigadaj

Jonbvn wrote: »

Please ensure that you fully satisfy the requirements of the statutory residence test.

http://www.hmrc.gov.uk/international/rdr3.pdf

It's certainly got a lot more complicated in the last few years!

Jonbvn

bigadaj wrote: »

It's certainly got a lot more complicated in the last few years!

Although much more clear cut now, than previously.

BeachNut

IntriguedGirl wrote: »

I'm also currently in the process of having my pension transferred to a QROPS.

You might want to recheck if that's the right thing to do if you plan to return to the UK in 5 or 6 years time...