Advice please: UK Income

[John Browning]

about to set up my State Age Pension from the UK: this will probably amount to small amounts in pounds Stirling on a monthly basis.

 

how do I go about transferring cash from the UK on an occasional basis (-say twice a year):

 

Is it better to set up a bank account in the UK with a Brit Bank;

 

-or set up a an account with an Oz bank that has a branch in the UK;

 

-or maybe set up an account in another institution altogether?

 

My recollection is that Bank transfers are ridiculously expensive . Maybe it's better to put the cash in a debit (VISA) account?

 

 

-What advice do people have?

 

 

John B

[ExploringAdelaide]

There are a few ways of doing this John B,

Firstly I am NOT a qualified accountant or expert, I can only speak from my own experience....

I kept my UK bank account open and I have tried bank transfers, HiFx and Currency Fair to transfer money. For me, over the past 5 years, I have found that Currency Fair is the best in terms of being quick, easy and better value (e.g. there are no hidden fees and the exchange rate is rather good).

If I were you, I would definitely discuss this with an accountant who knows about UK and Aussie tax laws before doing anything as there could well be tax implications and, who knows, you may be better leaving the money in the UK (depending on your personal circumstances)?

I am sure other people will give you the benefit of their experience too.

Good luck!

[John Browning]

well..no I don't have a UK account any more

 

JB

[Rammygirl]

Well you will not be able to open a UK account now the rules have changed. You can however open a Stirling account at the offshore bits of Nationwide, Skipton and other banks which are available to expats.

 

if it is just a small amount it may be better to let it accumulate then transfer chunks as you need them.

 

They will pay the pension directly to your Aus account but you will probably be charged more for this. Have a chat with your bank to see what charges will be made.

 

If you google UK expat finance you will come across many sites with useful pointers.

 

we are not claiming pensions yet but intend to have them paid into our Uk account.

 

you will need to declare the income on your Aus tax return as well.

[cliffy]

My UK State Pension is paid directly into the bank account I have here. Although it is a while since I applied, I seem to remember there was no choice as I did not have a UK bank account. As far as I am aware, I am not charged extra for the deposit, (or if so, very little) nor am I for my UK Govt Supn. but the conversion rate does vary according to normal bank exchange rates.

[John Browning]

thanks Rammy & Cliffy

 

-yes there's certainly no point in paying a transfer fee every time they pay the pension...much better to accumulate then transfer when the Exchange Rate is favorable.

 

JB