Working Abroad - 10 mistakes made by expats

Ten Worst Mistakes Made by Expats:

Gavin Pluck, European director at Guardian Wealth Management, warns of the 10 worst mistakes people from the United Kingdom make when moving abroad:

• People often underestimate the cost of living in a new country by assuming the cost of essentials in a new country will be comparable to those in their country, but countries like Switzerland can be far more expensive than the UK.
• Likewise, correctly estimating moving costs means taking into account foreign exchange rates, as well as fixed and one-time costs such as legal fees, expenses for purchasing and renting property, and local administrative fees and taxes.
• Being in new, exciting surroundings may lead to overspending to take in the new cultural experience, without keeping enough funds on hand for emergencies.
• To meet financial obligations retained in the UK, expats need to factor in exchange rate fluctuations, and should try to obtain a six- to 12-month fixed exchange rate when possible.
• It is equally important to understand the local tax system and how taxes will affect the family budget. An experienced international financial advisor can help develop a sound financial plan.

Other important legal and financial considerations include:

• Updating wills that will be recognized in the new country of domicile.
• Setting up an overseas bank account to avoid excessive bank charges for domestic payments.
• Informing the HMRC by completing Form P85 to avoid having to pay taxes in both the UK and the new country of residence.
• Life insurance policies should be checked and updated to be sure they provide coverage outside of the UK.
• National insurance contributions to pensions set up in the UK must either be maintained if planning to return later in life, or an alternative pension plan should be set up.

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Working Abroad - UK Income Tax

UK Creates Tighter Rules for Expats' Income Tax

Under a proposed rule, British non-residents who work more than 20 days a year in the United Kingdom will be subject to taxes on their worldwide income, according to a report by Arabian Business. The rule could take effect on April 6, 2012, and signifies the country's efforts to tighten residency rules to boost tax revenue, according to Spencer Lodge, regional director at PIC deVere. HM's Revenues & Customs has issued a consultation paper on the planned rule, which considers individuals who spend more than 182 days in the United Kingdom as residents who are responsible for paying income tax. In addition, expatriates who spend between 10 to 182 days in the country would be tested for non-residency status based on factors like whether family members live in the United Kingdom, housing, and employment, Lodge said. He added that the new rule could affect thousands of expatriates from the Gulf Cooperation Council (GCC) region of the Middle East. The Institute for Public Policy Research Data estimates that 5.6 million UK citizens currently live abroad permanently while 500,000 do so temporarily.

MENAFN.com (07/28/11)

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Working Abroad as Expats

Singapore now more expensive than Hong Kong:

According to human resource firm ECA International, it said the Singapore dollar, which has surged by more than 10 percent against the US Dollar, pushed the city-state to third place above Hong Kong, with Japan and South Korea remaining the two most expensive countries.

ECA International carries out a survey twice a year by measuring a basket of common items purchased by expatriates in more than 400 locations globally, such as dairy produce, vegetables, clothing and meals out.

The survey does not include housing, utilities, car and school expenses as these items can make a significant difference to costs but, the firm says, are often compensated for separately in expatriate packages.

“While we are seeing price increases in a number of Asian locations, the main reason for Singapore’s rise in our ranking over the past 12 months is the strength of the currency,” says Lee Quane, the firm’s regional director.

He said allowances paid to protect the purchasing power of employees on long-term assignment in Singapore are now higher than those paid to international executives posted in many other financial centres.

In the latest ECA International survey, carried out in March, Singapore had leapfrogged Hong Kong to occupy sixth position in a list of the 10 most expensive Asian cities.

Tokyo was followed by Nagoya, Yokohoma and Kobe, while South Korea’s capital Seoul was ranked fifth. After Singapore and Hong Kong, Beijing, Shanghai and South Korea’s port city of Busan were the most expensive Asian cities for expatriates.

Globally, Tokyo heads the top 10 list followed by Oslo, Nagoya, Stavanger in Norway, Yokohoma, Zurich, Angola’s capital Luanda, Geneva, Kobe and the Swiss capital of Bern.

(Original Source : TODAYonline)

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Working abroad - coming to the UK?

Are you thinking of moving to live and work in the UK?

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Coming Home to the UK?

You will also find some great articles and resources at Ukresident.com by clicking on the below link:

http://www.ukresident.com/content/articles/working-in-the-uk

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10 most expensive world cities for expats

The 10 most expensive world cities for expats.
Rankings (out of 214)

2011      2010              City                     Country

1              1                  Luanda                Angola

2              2                  Tokyo                  Japan

3              3                  N'Djamena           Chad

4              4                  Moscow               Russia

5              5                  Geneva                Switzerland

6              6                  Osaka                  Japan

7              8                  Zurich                   Switzerland

8             11                 Singapore             Singapore
9              8                  Hong Kong           Hong Kong
10            21                São Paulo             Brazil


Where London - UK is ranked:
18            17                London                 United Kingdom

(Mercer report 2011)

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UK Proposes reducing the number of immigrants who can apply for permanenet residence

Foreign workers in the UK will have fewer options for settlement in the country under a series of new government proposals. Those working on temporary visas will not be able to apply for settlement, and the government will classify immigration various routes as either temporary or permanent. It will also be more difficult to extend a visa. "The proposals I am making today are aimed at breaking the link between temporary and permanent migration," said Immigration Minister Damien Green. "We want the brightest and best workers to come to the UK, make a strong contribution to our economy while they are here, and then return home," he added. Under the proposals, Tier 2 will be classified as temporary, though certain categories of value to the country will be allowed an automatic settlement route. There will also be an English language requirement for adult dependents of Tier 2 workers who are on a route to settlement, and Tier 5 temporary workers may stay only twelve months.
workpermit.com 14/06/11

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Working Abroad - U.S Tax compliance drives expats to despair of U.S.

American expatriates who are employed overseas are expected to file tax returns with the Internal Revenue Service (IRS), even if they do not owe any taxes in the United States, or face penalties.
Starting in January 2013, the Foreign Account Tax Compliance Act (FATCA) will require banks across the globe to disclose details of accounts containing at least $50,000 belonging to U.S. clients, or be subject to a withholding tax.
The legislation seeks to prevent the evasion of more than $8 billion in taxes over the next 10 years. Some individuals involved with the initiative believe it will generate much more, but will catch unawares many U.S. citizens. It may also put at-risk individuals who knew they were bypassing the filing rules yet could not afford professional help for filling out these forms, which generally costs about $2,000 per form, says American Citizens Abroad.
Meanwhile, a voluntary disclosure initiative launched in February will charge citizens penalties of a fourth of the money in their bank account. In early June, however, the IRS reduced the penalty rate for failing to file to 5 percent of assets for some U.S. citizens living overseas, although the provision may not be applicable to Americans living in the United Kingdom and Hong Kong with offshore income.
Many Americans are worried that banks will abandon U.S. clients to reduce their FATCA compliance costs.

(Financial Times 12/06/11)

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Working abroad - Civil unrest in North Africa

Due to the civil unrest in a number of North African countries, the Foreign &Commonwealth Office has offered the following advice:

Morocco
Whilst there are currently no travel restrictions in place, travellers to the country should follow news reports and be alert to developments in North Africa that might trigger public disturbances.

Travellers should take precautions for their personal safety and avoid public gatherings and demonstrations. Any increase in regional tension may affect Travel Advice.


Libya
All but essential travel to Libya is not recommended. Those without a pressing need to remain in the country, should leave by commercial means if it is safe to do so.

The Libyan authorities may restrict access to the more remote parts of the country (e.g. desert areas and remote towns) at short notice.

Major demonstrations are continuing in Tripoli and across Libya, including in Benghazi, Derna and Al Bayda in the East of Libya and Misurata and Zawiya in Western Libya. Security forces have been deployed and there are reports of clashes and the use of violence , including water cannon, live ammunition and tear gas, to disperse crowds.

Foreign Nationals should avoid political gatherings and demonstrations and respect any advice or instruction from the local security authorities.

The British Embassy in Tripoli has received reports of increased crime levels in Libya during the recent unrest. British Nationals in Libya should ensure that their homes and possessions are secured and avoid non-essential travel, especially after dark.

There have been reports of attacks on company compounds in areas close to towns and cities. Companies with staff working in these compounds should make an evaluation of the security measures that they have in place and their level of supplies. If adequate security remains in place, workers may be safer remaining on site. If not, companies should consider leaving their compound and making preparations to move their staff out of Libya, if it is safe to do so.

Egypt
The FCO continue to advise against all but essential travel to Cairo (includes all four governorates of Cairo, Giza, Helwan, Alexandria and Suez.

This advice does not affect transits through Cairo airport for onward travel to other destinations. There are widespread strikes in Cairo and other towns and cities across Egypt. British nationals should observe instructions and advice by local security authorities and avoid public gatherings and disturbances.

According to latest information, Luxor & the Red Sea Resorts, including Sharm el Sheikh, are calm. However, the situation across Egypt is unpredictable and may change quickly.
There is a nationwide curfew in place from 00:00 to 06:00 local time. You must respect the curfew and listen for announcements about any changes to the curfew requirements. The curfew is not being enforced in the Red Sea Resort area or in Luxor.

for the latest information . . . . .

1. Foreign & Commonwealth Office (FCO) click to link to their website
2. US State Department (USD) click to link to their website




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Original link from ALC Health - http://www.alchealth.com/

What is your expat experience?

The HSBC Expat experience report 2009 shows results of a recent survey taken by expats.
Read more at this link:
http://www.offshore.hsbc.com/1/2/international/expat/expat-survey/results-2009
You can also find an expat economic report and offshore offspring report at the same site.
Are you thinking of becoming an expat?
Are you being moved as an expat to a new location?
Then this article will be valuable for you to read, giving insights into different locations and what other expats are saying.
Which country do you rate as being the best location to live in as an expat?