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Tax

Retirement planning for UK expats

retiring overseasFinancial planning specialist The Fry Group has some good advice for those planning to retire abroad. 

The lure of warmer climates, a slower pace of life, or perhaps even better taxation arrangements provide a big enough incentive to the thousands of people who embark on retiring overseas each year.

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The UK Tax System

Even in your country of origin, taxes can be a bit of a mystery – the rules are constantly changing, whose responsibility are they and new ones are always cropping up. In the UK it’s fairly clear cut (at the moment) so we focus on national insurance, VAT and council tax.

National Insurance contributions are payable on the earnings of people who work in the UK, and contributions are related to earnings. The benefits of the scheme include state retirement pension and cash benefits during unemployment or sickness.

Depending on your length of stay, if you are an EU member, etc, you may have to contribute to national insurance while working in the UK. Your HR department will advise you of the situation and will inform you if you should register with the Department of Social Security and how to go about it. After registration you will be sent a British national insurance number.

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