Wellness is a term that has become very popular in the past few years. We tend to think of it in terms of mental or physical health but it is time we looked at financial wellness.
Simply put, financial wellness is a relative measure of how well a person manages their financial life. We all want to be financially well and this article is about what it means and how you can improve your financial wellness.
Here we are again with another Budget and don’t they seem to come around fast?
Chancellor of the Exchequer, Jeremy Hunt has been in the role since October of last year and while he issued an Autumn Statement on 17th November 2022, he has had his feet under the big desk for a while now so should be in a better position to take economic steps for the benefit of the UK public.
This article is a brief overview of some of the main points with particular reference to any changes that have particular relevance to those living outside of the UK and especially in the GCC. The UK press will cover many points in detail but many of the points will not be directly relevant to expats so this article focuses on the points that could affect us.
The UK still has a cost of living crisis and the official inflation figure is 10%, a 40 year high. The price rises are being felt, as are the increased mortgage repayments. Salary increases are below inflation, energy prices are still high, and many people could do with some government support.
Interestingly, US inflation has fallen from its peak, from 9.1% to around 6% yesterday. Average European inflation is at 8.5%.
With a consensus that the UK could still enter into recession, the challenge is that expansionary spending could damage the steps being taken to try and keep a lid on further inflation.
As has become common in recent years, many of the announcements were trailed and leaked to the media as we there seem to be policy by feedback these days. We had been told that there would be support for working parents, an extension of the energy price cap, and an increase in the pension Lifetime Allowance.
Read on for a summary of the major points, and especially anything that affects expats
I last covered this topic many years ago, so it is time for an update. If you are a Brit with a foreign husband or wife, or you are not British but are married to a Brit, this article is for you.
As has been the case for the past couple of years, many of the Budget measure have been leaked or drip-fed to the press so we were not expecting much in the way of surprises and there is nothing that dramatic.
This article is a brief overview of some of the main points with particular reference to any changes that have relevance to those living outside of the UK and especially in the GCC. The UK press will cover many points in detail but many of the points will not be directly relevant to expats so this article focuses on the points that will be most relevant to us.
There is no question that this will not have been an easy Budget to put together. There are still uncertainties in respect of Covid19 and the UK economy has problems, for more than one reason. With so many people on a reduced income and many businesses suffering, tax hikes right now would be even more unwelcome than usual.
At this point in time, the UK is in more debt than it has been at any point in the past 50 years, at some £2.13 trillion which equates to 99% of GDP. Over the past 12 months the UK economy has shrunk by 10%, and some 700,000 people have lost jobs. UK unemployment is expected to peak at 6.5% in the 2021/22 tax year.
What is required now is to stimulate growth in the economy but I don’t think there is any immediate fix. The two main issues are to reduce debt and to support people and businesses who have been hardest hit – somewhat opposing issues.
No one knows quite how many people on furlough will actually have jobs to go back to and latest figures indicate that there are currently 6 million people on furlough in the UK at the moment.
This article is a brief overview of some of the main points with particular reference to any changes that have relevance to those living outside of the UK. The UK press will cover many points in detail but much of this is not directly relevant to expats so this article focuses on the main issues, highlighting any of relevance to expats.
When you relocate from one country to another there is a great deal you need to think about. These include the practical problems of shipping your possessions, finding a place to live, finding new schools for children, new employment and so on.
No doubt you will have lists of things to do but one area that is often overlooked is the financial side. It may not be exciting but you need to be aware of these issues to avoid any nasty surprise tax bills, especially in respect of UAE income or offshore investments.
Getting it right will save you money. Getting it wrong can be expensive.
I provide an exit planning service for people relocating to the UK and this professional service, with a personalised advice and a written report you can refer back to, can save you both money and headaches.
This article was updated in April 2024 so please see the latest version:
Moving from the UAE to the UK? You need a financial exit plan.
If you are unsure as to whether a move to the UK is right for you, I work with a expert counsellor who supports expats in making life decisions. She has the personal experience to give you the guidance to make the right decisions for you and your family. Contact me for a no-obligation referral.
I am a highly-qualified and experienced Independent Financial Adviser with over 30 years of experience, the last 18 in the UAE and prior to that in the UK. I provide a fee-based personal financial planning service to expatriates resident in the GCC. I also comment on all kinds of financial isues in The National newspaper and have a regular column where I answer reader questions. You’ll see my name in other UAE publications from time to time. My business motto is proper advice for nice people.
Please take a look at the many other useful articles on this website.
The UK has a progressive tax system and so the rate of tax payable increases as income increases. All UK residents have a Personal Allowance which means that the first part of their income is free from UK income tax. For the tax year 2020/21 this is £12,500 but you need to be aware of a change in the system.
The Personal Allowance is also available to people who are not resident in the UK provided they are a citizen of a European Economic Area (EEA) country, which includes all British passport-holders. It also applies to anyone who has worked for the UK government at any time during the relevant tax year.
There is however a change in the way that non-residents, expatriates, claim this allowance which has not been widely publicised so if you are UK non-resident for tax purposes and have income arising in the UK, such as rental income, you need to read on.
As most expats leave Dubai after a few years, either to return to a home county, or to move to another country altogether, I have put together a brief guide to some of the issues you need to consider before moving.
Ideally a move should be planned as far ahead as possible, particularly if there are potential tax issues to consider, but even if it happens with little notice there are still steps to take to ensure your move is as painless as possible.
A few years ago the UK Government in conjunction with Her Majesty’s Revenue & Customs (HMRC) announced that they would be introducing a new residence test. The intention was to clarify the status of people both leaving and arriving in the UK and there has been considerable discussion regarding exactly how and when to implement this.
The aim originally was to bring these new rules into effect from 6th April 2012, but this has been postponed to 6th April 2013. The purpose of this post is to provide you with an overview of the current proposals, as amended by the draft legislation that was published in December 2012. We are still however, awaiting the final legislation so it is possible the rules could be changed again before they come into force, although we do not anticipate anything major to change. Continue reading