Once the excitement of moving back home wears off, you’ll be faced with the confusion and stress of sorting out your finances in the UK. There is no doubt that expats returning to the UK can feel overwhelmed with this process, which is why Shalchi & Partners offers an expert repatriation tax service to make the chaotic feel simple. Read our quick guide to returning to the UK and see what needs to be done before heading home. Book a meeting with Shalchi & Partners to see how we make your tax planning as an expat convenient and hassle-free.
For the repatriation of funds to the UK, you must keep the following To-Do list in mind:
- Start your financial planning early. Don’t leave your preparation any later than 12 to 18 months before returning to the UK.
- Consider selling or gifting your assets, such as property, to loved ones to avoid having to pay income tax or capital gains tax on your return.
- If you need to rent somewhere when you first return, remember that your landlord wouldn’t be able to run a credit check on you since you’ve been living overseas. You’ll want to combat that by showing proof of earnings, proof of employment (contract) and proof of employer (reference letter). We also suggest paying one or two months of rent upfront to prove that you can afford to pay any monthly bills.
- If you’re looking to get a mortgage in the UK after moving home, keep in mind that a bank wouldn’t be able to find a UK address from the last three years. We advise choosing a bank that runs credit checks instead of credit scores to prove you have sufficient funds for a mortgage. Expect to put down a 25% deposit.
- You’ll want to send your health and dental records back to the UK and enroll in the NHS as quickly as possible.
- You’ll want to open a bank account in the UK and transfer any funds you may have overseas using an UK IBAN number and SWIFT code. We also suggest opening a multi-currency account to manage your money in other countries. You can send and pay your bills in any currency of your choice to avoid dealing with the exchange rate.
Why Choose Shalchi & Partners?
Dedicated, Personal Advisor
When you meet with the Shalchi & Partners team, you’ll be paired with a dedicated financial advisor who’ll act as your sole point of contact throughout your time with us. Your financial advisor will give you expert, independent advice as your plans and policies mature, and our advice will be tailored to your specific needs and financial situation.
Shalchi & Partners is independently owned, which means we can recommend plans and policies that best suit your lifestyle, budget and financial situation. We ensure that our recommendations are cost effective and designed to meet your short and long-term financial goals. Our advice isn’t influenced by the market, which means you trust that we’re on your side.
Our Commitment to You
The Shalchi & Partners team wants to establish a long-lasting relationship with you. We deliver exemplary service and place you at the heart of everything we do. We’re fully committed to helping you invest strategically and save wisely so you can accomplish your financial goals. Your trust, business and friendship are invaluable to our team.
Overseas Pensions: QROP & SIPP Pensions
In terms of investments and pensions, we can help you transfer two types of pensions: Qualifying Recognised Overseas Pension Schemes (QROPS) and Self-Invested Personal Pensions (SIPP). A QROPS, like a SIPP, is a UK-registered pension scheme that’s based outside of the UK and is most popular with repatriates. You must inform your provider when you return to the UK and report any funds to Her Majesty’s Revenue and Customs. You can either transfer your QROP into another UK-registered pension without paying a fee or keep your funds in a QROP and pay the fees associated with withdrawing from it. Our advisors are experienced in transferring international pension schemes, so consult us before moving your funds back to the UK.
Financial Planning & Tax Help for Repatriates
In the UK, the tax year begins on April 6th and ends on April 5th the next year, Like our blog stated in Does a British Expat Need to Do a Tax Return?, we highly recommend filing a tax return with the HMRC to ensure that you paid any taxes on your UK and foreign income and gains correctly. The amount of income tax you need to pay is based on which tax band you fall under and if you’re a resident or non-resident of the UK. If you happen to return to the UK after five years of living abroad, keep in mind that your income overseas won’t’ be taxed; only your investments and assets will be. The only time you’d be forced to pay tax on your foreign income is if you lived abroad less than a full tax year.
Independent financial advice is just a click or call away. Contact Shalchi & Partners today to learn how to return back to the UK quickly, conveniently and correctly. We’re here for you.