Moving to the UK simplified

There’s a lot to consider when moving to the UK. It’s no surprise then, that many people don’t know where to begin.

There are so many things to think about. Tax, homes, schools, hospitals, driving, bank accounts and social welfare to name but a few.

In this guide, we cover what’s important so that you can start preparing for your move ahead.

Let’s get into it.

What are the tax implications when you move to the UK?

Tax is complicated at the best times. More so when you go to a new country.

Often times, it pays to start thinking ahead with this one.

Rumour has it that there are over one hundred taxes to pay in the UK.

Of course, they aren’t all applicable to everyone, but in all likelihood you’ll need to pay some of them somewhere down the line.

As a minimum you need to know:

• Is there any action you need to take before moving to the UK?
• What taxes are you going to pay when you arrive in the UK?

Actions you may need to take include steps that could reduce your tax liability. Examples being selling investment assets or moving them into tax sheltered accounts before your move.

Now, all that said, in many cases tax is automated.

Prime examples being income tax and stamp duty.

Employers automatically subtract tax from your salary, and stamp duty get’s automatically charged when you buy property.

On the other hand, there are a couple of common areas that aren’t automated.

• Self employment
• You already have investment assets

Both of the above may require self assessment tax returns (see below).

The bad news: You become responsible for your own tax. The good news: There is help available if you need it.

Where can I get UK tax advice?

If you need tax advice before you move to the UK there are plenty of options available to you.

First up, we cover the main UK taxes here. Whilst the guide is aimed at expats and non residents, it contains a lot of useful information for anybody planning on moving to the UK.

There are also some good free online sources:

LITRG is an initiative of the Chartered Institute of Taxation, which is an educational charity.

TaxAid is a charity that helps people on low incomes when they get into difficulties with their tax affairs.

MoneyHelper is a free service provided by the Money and Pensions Service, which is sponsored by the UK Government.

HMRC or the Tax Department of the UK Government also has a great deal of useful information available.

How do I do UK self assessment?

If you are going to be working for yourself or have investment assets you may need to complete a self assessment form.

There are three main ways to do this:

First, you can complete the hand written forms yourself and stick them in the post. Second, you can get some software to help you and finally you can pay a professional to do it all for you.

If you are taking the handwritten form approach there are multiple paper forms that you may need to fill out.

To start with, there is the main form (SA100). Everybody needs to complete this. And then there are some supplementary forms that may or may not apply to you as follows:

• employees or company directors SA102
• self-employment – SA103S or SA103F
• business partnerships – SA104S or SA104F
• UK property income – SA105
• foreign income or gains – SA106
• capital gains – SA108
• non-UK residents or dual residents – SA109

Each of the above links takes you directly to the government’s web page. You can then download the form in question and some supplementary notes if required. If you are not sure which forms apply to you, the supplementary notes should help you decide.

Alternatively, you can take advantage of the internet. Nowadays there are plenty of services available.

First, there’s software available to help you. Taking the best part of a day to fill out paper forms becomes about half an hour when taking the app/software approach.

I’ve compared some tax software packages here, but for tax returns specifically you might want to try GoSimpleTax. Right now you can try it for free here.

Alternatively, if you want to minimize the chance of errors and maximize your time, you can pay somebody to do everything for you. I’ve talked more about that here, but UK Landlord Tax would be a safe place to start. This page contains their contact form. They are very receptive to questions, so it maybe worth getting in touch if you have any pressing problems.

Whichever method you choose to complete your tax return do be aware that the UK tax system operates from the 6 April in one year to the 5 April of the next year.

And forms need to be submitted by 31 October by post or 31 January for online

Meeting these deadlines avoids a minimum £100 fine and I’m sure it goes without saying that HMRC has all kinds of options if you don’t pay your tax. These include accessing your bank account directly and selling your possessions

Split year tax return

Tax years run from April to April so it’s in your best interests to try and time your move as close to April 6 as you can so that you can avoid completing a ‘split year’ tax return which are a bit of a nightmare if you do it yourself and not much better for professionals resulting in the potential for them to charge you more.

Buying UK property from overseas

The process of buying UK property form overseas has never been easier.

Here’s a quick outline of the steps required.

• Find your property using an online portal (Use Rightmove or Zoopla)
• Research the area using Rightmove, Zoopla & Google
• Contact the estate agent (You can get the details from Rightmove & Zoopla)
• Organise a viewing (Agents can do this virtually)
• Arrange finance (You can use an expat/non resident mortgage broker – see below)
• Make an offer (do it by email because then it’s in writing)
• Recruit a solicitor (Your agent can recommend local solicitors)
• Buy the house

Can I get a mortgage if I don’t live in the UK?

If you need to use a mortgage when buying UK property from overseas, you have two options.

You can either arrange finance in your current country of residence with a local lender or you can use a UK non resident lender.

The best way to find a UK non resident lender is by using a specialist mortgage broker.

If you haven’t yet found one, we’ve taken a look at three of the best for non residents here.

I have a child moving to a UK school

We often talk about doing your own due diligence at British Expat Money, but I think, when it comes to your child’s education we really mean it this time.

This topic deserves an article of its own which is in the pipeline. However, here are a few things to think about in the meantime.

Culture shock – Swapping, marble floors, sunshine and BBC English for strong accents, carpets and rain might take a while to get used to for some.

Watershed years – Unless your children are really good at fitting in, it can be very difficult to break into established friendships. As a result, where possible children moving to the UK will usually find it easier if you time the move to coincide with a watershed year. 11 for high school or 16 for six form, being two of the big ones.

Early applications – Some schools begin the admissions process three years in advance. If you want your child to go to such a school you are going to need to be prepared.

Transferring to UK Universities

If either you or your child are planning to transfer to a UK University there are a couple of things to think about.

First and foremost, international students usually pay more in tuition fees. In fact, they usually pay double the fees UK students pay.

To be classed as a UK student you usually need to have been living in the UK prior to course commencement.

The good new is you don’t usually have to be born in the UK to be classed as a UK student. The bad new is, you need to have been living in the UK for three years continuously prior to your start date.

In other words, you really need to move to the UK three years before you are due to begin University.

By the way, this includes the children of British expatriates.

That said some people seem to get around these rules. It will depend on your actual situation and which university you apply to. Having strong connections to the UK, such as family and housing could help.

Contacting University admissions well in advance of course commencement to ensure you are applying to Universities that will accept you as a UK resident should serve you well.

But of course, the safest route is going to be moving to the UK three years before the course starts.

Who can use the National Health Service?

Here’s a direct quote from the NHS:

To be considered ordinarily resident and entitled to free hospital treatment, you must be living in the UK on a lawful and properly settled basis for the time being. You may be asked to prove this.

You cannot be considered ordinarily resident in the UK unless you have indefinite leave to remain or status under the EU Settlement Scheme.

In other words, as long as you are moving to the UK permanently you should be able to use the NHS.

Getting a UK drivers license

EU and EEA driving licences should still accepted in Britain after Brexit. However, non EU/EEA licences usually need to be exchanged for a UK version.

In some odd cases you could be required to apply for a new UK licence, which in turn could involve retaking your driving test.

There’s more detailed guidance here.

Bringing family to the UK

If you are bringing family to the UK, you’ll need a family visa.

These cost over £1,500 each for both partners and children.

The sponsor needs to fulfil various requirements. Most importantly you need to demonstrate you have enough money to support your dependents.

The sponsor needs to earn at least £18,600 per year to bring their partner to the UK.

£3,800 is then required for a child and then a further £2,400 for each subsequent child.

If you don’t earn enough you’ll need an additional £16,000 in savings plus £2.50 for every £1 your income is below the required amount.

Here’s a quick example:

You earn £18,000 and you want to bring your partner to the UK and don’t have any children so your income is £600 lower than it needs to be.

£600 x £2.50 = £1, 500

So in total you need £17,500 in savings to supplement your £18,000 annual income.

Whilst children don’t usually have specific language requirements, partners usually do.

They will usually need to take a test unless they fall in to one of the following categories:

• Under 18
• Over 65
• Come from a country with English as an official language
• Completed a University degree that was taught or researched in English

There’s more on this here.

Is it easy to open a bank account when you are new to the UK?

Most people new to the UK open a bank account somewhere down the line.

Where they do run into problems is at the beginning of their stay. It can be harder to open an account if you don’t meet the banks requirements which can be tricky to fulfil when you first arrive.

And even if you do meet those requirements, many services like credit cards and overdrafts are restricted.

One way to get around these initial problems is by opening an account that accepts non residents. We’ve compared a few possibilities here.

Is the benefit system available as soon as you move to the UK?

The UK has various resident benefits.

However, new arrivals to the UK may need to complete the Habitual Residence Test (HRT) before claiming any benefits.

The Citzens Advice Bureau has more information on this here.

But here’s a quick summary of what you need to demonstrate:

1. A legal right to live in the UK and claim these benefits (called right to reside);
2. That your intension is to settle in the UK, Isle of Man, Channel Islands or Ireland (the ‘common travel area’) and make it your home (called habitual residence).

The Government also has more on this here.

Do immigrants get state pension?

In short, immigrants can get the state pension. The key being, you need qualifying years. 10 minimum but 35 if you want to claim the full amount.

Qualifying years usually means years you were working and paying National Insurance Contributions (NICs). But credits are sometimes given in certain circumstances, it is possible to make voluntary contributions and years worked in some other countries can also count.

There’s a lot more on this topic here.

Are there any official requirements when you move or go back to UK?

The UK Government lists requirements, depending on where you are moving from.

The following links go directly to the relevant page on their website.

In general, you need the correct identification document. Usually a passport, but some forms of ID card are also accepted depending on your exact situation.

An example being what your nationality is, and where you are traveling from.

• General UK entry requirements
• British citizens
• EU citizens
• Switzerland, Norway, Iceland or Liechtenstein citizens
• Other international citizens

What is life in the UK test?

The life in the UK test is required for both indefinite leave to remain (ILR) and citizen applications.

In other words, you may need to do this test if you come to the UK.

You do not need to take the test if you:

• are under 18;
• are 65 or over;
• have passed it before, many will have already completed the test when they applied to settle in the UK;  or
• have a long-term physical or mental condition.

The good news is you can take the test as many times as you want (or can afford as you’ll need to pay £50 each time).

You usually take the test at a local test centre. It will have 24 questions about UK traditions and customs and you need to get 75% correct to pass.

There is only one official handbook for the test. You can find it here.

However, there are places where you can find the test practice for free (such as here).

Where can I get help when moving to the UK?

There’s a lot of free help available if you know where to find it.

For anything finance related we always recommend starting with Money Helper. It’s a great free resource backed by the UK government.

Or you can find more general advice at the Citizens Advice Bureau.

The UK government’s website also has a lot of useful information and contact details.