For many Aussies, a stint living and working in the UK is often considered one of those things everyone should do. It has become more difficult recently, however, with the discussion around new anti-migrant policies.
If you are planning a move to the UK, you will no doubt already have considered the main aspects like housing, jobs, schools, etc, but have you considered the following important points you’ll need to think about?
1. Timing is everything
There are certain things which need to be done at specific times. Make a list and work your way through it. It is important to note that some things are much easier to sort out before you move, rather than once you are in the UK. For example, if you own investments or property in Australia, it is worth seeking professional advice on tax impacts in advance rather than after you have arrived, otherwise it could restrict your options.
2. Tax matters
Once you arrive in Britain as an Australian citizen, you will need to take care of your tax arrangements shortly after moving here. If you are employed by a British company, your British tax will be PAYE (pay as you earn) and be deducted automatically from your salary.
You will also need to determine whether or not you will be an Australian resident for tax purposes. If you have Australian sourced income (eg. business income, or rental income) you will still need to file a tax return in Australia. Taxes in the UK are paid on a sliding scale on a tax year that runs from April 6th to April 5th. As in point 1, it is often easier to seek advice regarding tax issues relating to your financial planning prior to moving.
3. Your Will and inheritence
Granted, these may not be at the top of your list compared with renting a house, finding schools or getting used to the weather (!) but they are nonetheless important financial considerations. You may need a separate will in each country as the law regarding inheritance tax is different in each. Again, it is worth seeking professional advice if you are considering transferring recently inherited money as the situation can be complex.
At Cross Border Financial Planning, we are appropriately qualified and experienced in providing financial advice on moving to the UK so if you would like any assistance with this aspect of your financial planning, do get in touch.