Banking and finances for fulltiming Forums

teensvan

Hi All.

We are going to start fulltiming in september this year and will be staying on a local site for a month to make any last minute adjustments to the van. We shall then be off to motor down through France, and end up in spain for the winter, all being well. This is our first van and have never been over the water with it. As both of us have given up work but not of retirement age does anyone know if you have to pay any kind of national health stamp. We shall also be renting out our main home and another small house. Do we have to inform the Tax office or do you just go off and chance it. Do hope there are no tax men on this site. We would be very gratefull of any advice on money matters so as to help us through this our fulltiming start up, our aim is to full time for the next 10 years around europe.

Could anyone give us any advice or tips on how to set up a bank account either in Spain or France and is this a good idea or is it just as well to stay with our English banks?

Looking forward to starting this new way of life although we are a little bit nervous (or to tell the truth terrified).

steve and ann ---- teensvan.

artona · Moderator

Hi Steve and Ann

We are holding a rally next month where a group of us will be getting together to talk about full timing - a sort of brain storming and exchange of ideas. Come if you want click

teensvan

Hi stew

Thanks for the info on the banking. I did read your post on your rally next month, we are still very busy trying to get our house into shape to rent out. We are also taking our twin 5 year old grandsons to legoland for a 2 day trip the week before your rally, might not be fully recovered. Will speak to my good lady befor we book. I see you have a good responce to this rally. Thanks once again for your help.

ann and steve ---- teensvan.

kands · Account Deactivated

Hi Ann and Steve

Just to wish you good luck on your travels... And in passing agree with Stewart wholeheartedly about speaking with an accountant. The tax man will get you if you try to dodge him so you might as well be up front from the get go....
You don't want to find yourself in trouble when you come back into the UK and find that the tax bill is now enormous, due to fines and interest charges, and you end up very poor indeed. That would not be good mate.

Let us know how you get on

Keith

Rapide561

Hi

The need for an overseas bank account is minimised as (already mentioned) the Nationwide do not rip us off!

However, you always need to have a suitable balance in there and may need to rely on internet banking to move funds from one account to an other. They offer a "E savings" account (4.55% credit interest) which runs nicely along the Flex Account (current account with debit card.)

An account in the country of residence will offer you a cheque book - but the cheques can only be used in the country of origin otherwise they become "cheque negotiations" or "inward collections" and there are bank charges for both parties. (I used to deal with these all day long, in my younger days at the bank).

I e mailed Nationwide only yesterday askking if they offer an automatic transfer facility to ensure funds move automatically from the savings account to the current.

See a financial advisor as if you are leaving the UK in Sept, you may find you are due a tax refund!

Most IFA's are free for the firsts hour or so and a good place to start is the Bradford and Bingley. Their advisors are independent and do not sell only products offered by the B&B>

Regards

Rapide561

phoenix

You can get free health treatment using the European Health card that replaced the E111. Note that if you leave the UK for three years, you are no longer considered resident and this card no longer applies.

In this case, you will need to take out private medical insurance that covers the areas you will be travelling in.

You may need to pay a voluntary national insurance contribution to ensure you/partner receive a full UK government pension. This can be done by direct debit.

If you are not working and paying tax, your house profits and interest payments from banks can be used to claim your tax free allowances. Note that bank accounts abroad may also attract UK government tax - thats why all accounts were renumbered during the past two years. The new ISDN numbers tell where the account holder is resident so all governments can claim their share. I believe only Switzerland and Isle of Man still keep things private, by paying a block amount.

See link for telephone numbers for further help.

TUCANO

Steve and Ann,

You will be classed as "ordinarily resident " whilst on your travels and can elect not to pay NI contributions should you wish. You can then decide to pay the "shortfall" when you return if you wish to. I believe that you can do that for a max of five years without it affecting your pension pot. You will find lots of the info you need at

Steptoe

Please forgive me for jumping in here but there seem to be some knowledgeable minds on this thread and I badly need advice.

I have been renting a 'spare' house out for about eight years, however I omitted to mention it to the taxman Embarassed

. (I have never had to fill in a tax return and since I took voluntary redundancy the taxman has more or less ignored me apart from the occasional notice of coding).

Anyway, like in the Darling Buds of May, the taxman has now rumbled me, unfortunately my daughter has already left home and grandaughter is not yet old enough to distract him Wink

, so I have been sent tax returns for the last five years Shocked

The annual rental income from the house, less expenses, was/is less than my tax free allowance for each year, and my only other income, bar a couple of hundred pounds each year, is from share dividends, which of course have tax deducted at source.

Absolute honesty is now my best policy, and if I fill in all these returns correctly, am I correct in my assumption that I will not be liable for tax?