# Banking advice - UK Expat



## LittleMiss1980 (Jun 8, 2011)

Hi guys,

I am moving over to Dubai in 5 weeks and I'm not sure if I need to close down my account in England or whether I can keep it open to transfer money into?

Any advice greatly appreciated please!


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## neilrock (May 7, 2011)

Downgrade it to a free account and, leave it open... You need somewhere to put your well earned savings away. If it's in GBP, the UAE wont be able to get at it if they decide to introduce a tax or, your employer asks the banks to freeze your account.


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## Gavtek (Aug 23, 2009)

Depends which bank you're with, I had a current account with Alliance & Leicester and was able to keep it open registered to my address in Dubai but when they got taken over by Santander, I had to close it down.


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## wandabug (Apr 22, 2010)

I kept my bank account and credit card open in the UK by using my in-laws address - I didn't tell the bank I had moved to Dubai. Makes life easier when you move back.


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## Mr Rossi (May 16, 2009)

Keep it open and change the address to your parents, inlaw, siblings etc.

You'll find a uk debit card handy for amazon, ebay, paypal etc.


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## olsontowers (Jan 18, 2011)

I'm currently working for a UK bank, and would suggest that you keep the account open. As detailed above, change the address to a relative.

Register for onlone banking for all your facilities, bank account, credit card etc.

You should also look to transfer your bank account to an off shore island with your current bank, this might be Jersey or Guernsey, provided they have a branch there. This will allow you to have interest paid gross rather than with the deduction of tax. It will also avoid any funds being remitted into the UK and can have greater tax advantages further down the line.

Hope that helps, but go into the bank first and ask them if you can move the account off shore.


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## LittleMiss1980 (Jun 8, 2011)

Thanks for all your advice.

I have a bank account in the UK with Santander and also Lloyds. Is it better to open an account in Dubai with a local bank? Or should I stay with Lloyds as they have a branch in the UAE? I will speak to both about getting an off shore account.

I will be contacting the HMRC to find out whether I will be classed as non-resident - I should think I would be as I am moving to Dubai for at least two years.


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## wandabug (Apr 22, 2010)

You will need to open a bank account in Dubai for a UAE cheque book. Cheques are widely used here instead of Direct Debits. It is easy to open an account once you are here - EmiratesNBD are very good as they have the most branches but there are plenty of other options. Lloyds are OK but very few branches. It may also depend on your employer - they may want you to open an account at their bank for your salary to be paid into.
I have an account with Lloyds in UK and EmiratesNBD in Dubai. But I transfer money home through one of the Exchange agencies in Mall of The Emirates as it is cheaper than using the bank.


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## bjf83 (Apr 14, 2011)

LittleMiss1980 said:


> I will be contacting the HMRC to find out whether I will be classed as non-resident - I should think I would be as I am moving to Dubai for at least two years.


The advice I got from HMRC is that I need to be out the UK for a full tax year (April to March) to not have to pay UK income tax on my earnings. I'm moving out next week so I need to be out in Dubai from April 2012 to March 2013 to be ok.

You'll need to fill in a couple of forms - I think it was the P85 for HMRC. 

The other form is I think a form P105 for your bank. If you fill this in you should not be taxed on savings or interest from your current account - but not all banks accept the form...


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## LittleMiss1980 (Jun 8, 2011)

bjf83 said:


> The advice I got from HMRC is that I need to be out the UK for a full tax year (April to March) to not have to pay UK income tax on my earnings. I'm moving out next week so I need to be out in Dubai from April 2012 to March 2013 to be ok.
> 
> You'll need to fill in a couple of forms - I think it was the P85 for HMRC.
> 
> The other form is I think a form P105 for your bank. If you fill this in you should not be taxed on savings or interest from your current account - but not all banks accept the form...


So will you be expected to pay tax on any income between now and April? (Good luck with the move, by the way)

Thanks for the info regarding the forms!


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## bjf83 (Apr 14, 2011)

LittleMiss1980 said:


> So will you be expected to pay tax on any income between now and April? (Good luck with the move, by the way)


No, but if I return before April 2013 I will have to pay tax on any income earnt from now until my return.


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## LittleMiss1980 (Jun 8, 2011)

bjf83 said:


> No, but if I return before April 2013 I will have to pay tax on any income earnt from now until my return.


Does that include returning for a holiday? Someone has told me we have to stay away for a year and a day otherwise we're expected to pay the full rate of tax.


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## bjf83 (Apr 14, 2011)

No - you can come back for a holiday (as I understand it) but you can't come back and do any work during that period.


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## LittleMiss1980 (Jun 8, 2011)

bjf83 said:


> No - you can come back for a holiday (as I understand it) but you can't come back and do any work during that period.


I hope so, as I want to be back for Christmas!


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## olsontowers (Jan 18, 2011)

<incorrect & misleading information removed >

As detailed earlier in the thread, you should contact HMRC and notify them of your leaving.


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## Elphaba (Jan 24, 2008)

LittleMiss1980 said:


> I hope so, as I want to be back for Christmas!


Holidays count as part of your days in the UK, working or not has no relevance at the moment. If a person spends more than 91 days in the UK in a tax year (averaged over four years) then they will be classed as UK resident and liable to tax on both UK and overseas earnings.

-


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## Elphaba (Jan 24, 2008)

olsontowers said:


> You will automatically be classed as non resident and not ordinarily resident in the UK for tax purposes if you are moving overseas to take up employment. Any income you earn in the tax year will be subject to tax if it's earned in the UK, regardless ofhow long you may or may not have been out of the country, but your Dubai income will not be.
> 
> As detailed earlier in the thread, you should contact HMRC and notify them of your leaving.


Not quite right. It is not automatic, and non-resident and not ordinarily resident are not the same thing.

Overseas income can be taxed in the UK. It depends on how long the individual is out of the the country in a tax year, averaged over four years.

-


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## Mike2k12 (Jul 18, 2011)

bjf83 said:


> The advice I got from HMRC is that I need to be out the UK for a full tax year (April to March) to not have to pay UK income tax on my earnings. I'm moving out next week so I need to be out in Dubai from April 2012 to March 2013 to be ok.
> 
> You'll need to fill in a couple of forms - I think it was the P85 for HMRC.
> 
> The other form is I think a form P105 for your bank. If you fill this in you should not be taxed on savings or interest from your current account - but not all banks accept the form...


Hi mate,

Are the forms from HMRC necessary? If I were to just bring money back to the UK with me every time I visit and Deposit it in the bank would they tax it without knowing where it came from?


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## stuartmatthewson (Feb 15, 2011)

I still have my Natwest accounts in UK, registered to my Dubai address, so all my statements get sent here - decent online banking as well


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## bodget (May 24, 2011)

if you transfer money to a uk account do hmrc start enquiring?


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## bjf83 (Apr 14, 2011)

bodget said:


> if you transfer money to a uk account do hmrc start enquiring?


If you haven't filled in a P85 then maybe. Also, if you haven't filled in a R85 you'll get taxed on any interest. 

I say fill in the forms and get all the breaks you can!


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## leap2unknown (Jul 28, 2011)

Great advice on here. I am going to keep my UK account and transfer to grandparents address. But how do you go about opening an account in Dubai?


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## Maz25 (Jul 6, 2008)

leap2unknown said:


> Great advice on here. I am going to keep my UK account and transfer to grandparents address. But how do you go about opening an account in Dubai?


Your employer will normally assist you and will typically recommend the same bank that they are using as it means that your salary is credited as soon as they make the transfer to your account.

Different banks have different requirements but as a general rule, you will need a copy of your passport and residence visa and salary transfer letter from your employer. If you do not have your residence visa yet, your employer can provide a letter confirming that they are in the process of applying for it and most banks, will on that basis, open a current account for you or alternatively a savings account, which can later be converted to a current account, once you have your residence visa.

Certain accounts will require you to either be earning a minimum salary, maintain a minimum balance and some will also cost you a monthly fee, for which you do not get anything extra despite the bank's claims about preferential service.


If you do a search, there are a few threads that discusses the various banks and accounts on offer.


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## leap2unknown (Jul 28, 2011)

Maz25 said:


> Your employer will normally assist you and will typically recommend the same bank that they are using as it means that your salary is credited as soon as they make the transfer to your account.
> 
> Different banks have different requirements but as a general rule, you will need a copy of your passport and residence visa and salary transfer letter from your employer. If you do not have your residence visa yet, your employer can provide a letter confirming that they are in the process of applying for it and most banks, will on that basis, open a current account for you or alternatively a savings account, which can later be converted to a current account, once you have your residence visa.
> 
> ...


Great advice. Thanks for this. So much to learn. And still loads to pack!


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