Tag Archives: personal financial planning UAE

UK Budget March 2021 – the facts for expats

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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.

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Can you afford to survive a critical illness?

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I have two simple questions for you. Could you and your family survive financially if you suffered a serious illness and were unable to work? Even if you could, would it decimate your savings and future plans?

Being diagnosed with cancer, heart disease or having a stroke is something you don’t expect and is often a matter of bad luck, but you can take steps to make sure you and your family can manage without any financial problems, taking away a major cause of stress.

Let me tell you about a true story. This happened to a client of mine.

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A flight to bricks & mortar? Options to invest in UK & European property

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In an uncertain world, it is understandable that we have seen an increase in property as an investment class. People have always liked investments that they fully understand, or can see and touch. Property markets are not equal and the legalities and potential for growth and/or income vary hugely but Europe still presents many opportunities for long-term investment and yield.

Recent surveys have shown that many expats are keen to invest in property in their home country either as they consider it a more secure place than where they are currently living or as a potential base should they need to move back.

The recent upheavals in work, schooling, lifestyle and more has made many reflect on the lives that they want to lead, and to consider future plans. Initially, I saw an uplift in enquiries for wills and life cover, and while these are still popular, I am now being contacted by people about property investment in the UK and Germany. Fortunately, I can assist with both and you can invest without leaving home.

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The 12 Days of Christmas – the cost of recreating it in the UAE

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It’s the time of year for seasonal cheer and goodwill to all men so for a little fun I’ve put together something a little different. It can be tough to decide what to buy for your significant other, particularly when they seem to have everything, so sometimes you just need to be creative. Most people know the song The Twelve Days of Christmas so to show someone that they really are your true love you could go all out and recreate it!

Here is your guide  to how to find the appropriate gifts for all 12 days to your beloved. This is the UAE so we just have to do things a little differently but if you really want to impress the love of your life this Christmas here’s how you can do it, and most importantly what it is likely to cost you.

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10 things teenagers need to know about money

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There is no doubt that many youngsters leaving school this summer are clueless about their finances. It is important to have some financial knowledge to safely negotiate the adult world so here are some points that every young person should know about money.

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News: VAT in the UAE confirmed from 1st January 2018

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It has now been formally confirmed  by the GCC Supreme Council that the UAE will be introducing VAT (Value Added Tax) with effect from 1st January 2018 at a rate of 5%.

Other countries in the GCC (Gulf Co-operation Council) will introduce VAT by 1st January 2019 as some require a little more time for the implementation.

The announcement was made at a conference hosted by the Ministry of Finance in Dubai and attended by Christine Lagarde, Managing Director of the International Monetary Fund who has been publicly pushing for this for some time.

VAT calculatorThe tax will be at a rate of 5% but it seems that it will operate more like a sales tax than like the system of VAT does in certain Western countries. It has been announced that 100 food items, as well as education and healthcare will be exempt from the new tax.

 

As with any sales tax this will have a higher impact on the lower paid as a higher percentage of their earnings is spent on essentials such as clothing, petrol and food. Whilst this has been expected for some time, the formal announcement is not being well received. There will be costs for implementation and higher prices may well be the final straw for expats who are already struggling financially. Will this lead to an exodus of expats? Time will tell.

Update: UAE Minister of Finance Obaid Humaid Al Tayer has insisted the UAE government is not considering income tax so we need not be concerned about that for the time being.

keren@holbornassets.com