Hello and banking help please (getting paid in AED....)
Mar 25th 2008, 11:13 am
#1
Forum Regular
Thread Starter
Joined: Mar 2008
Posts: 178
Hello and banking help please (getting paid in AED....)
Hi guys,
I am new to the forum and have been browsing many really helpful posts! I am moving to Dubai from the UK on 7th April with my partner (both with jobs recently secured!) and had loads of questions, but many have been answered by browsing through the info on here ( I am sure I will think of some more soon : - )
The one area I am still unclear on is banking and the best way to do it, so I am hoping someone can break this down in the simplest way possible.
Here is my situation:
I bank with Natwest in the UK. Due to having an outstanding loan and the fact I have a Natwest credit card, I am going to follow the advice of one of the other threads and keep this account open so I already have a Mastercard I can use and also it makes things easier if/when I move back. My mortgage comes out of this account and the rent I will be earning from my UK property will be paid into this account.
I will be getting paid in AED from my company in Dubai into an account yet to be specified by me.
I will need to transfer circa £600 (AED4200) per month back from UAE to my UK Natwest account to cover the shorfall between rental income/mortgage and cover a few bills etc.
I am just trying to establish the best way to go about my banking:
Do I wait until I get to Dubai and set up a local one then transfer money back to the UK as and when? Do I set up an International account? I have noticed many International/Offshore ones ( such as Lloyds TSB) are in Euro, GBP or USD - how does this effect someone getting paid in AED, would I lose lots of money due to poor bank exchange rates etc? Also, what is the best way of taking £20k-£25k (GBP) from here to Dubai? (to buy furniture, a car etc) Would I lose out due to bad exchange rates doing this via a bank as opposed to going through Forex/Travelex etc?
Apologies if the question sounds similar to the ones in the other banking threads, but I couldnt see much info on them about getting paid in AED as many people seem to be getting paid in GBP or USD hence the questions are relating to that instead! I am a bit of a novice when it comes to this banking and finance lark :s
I did see a chartered accountant over here with regard to assistance with taxation on my rental income, and he seemed to think that I would NOT get taxed on any money transferred back from Dubai into my UK account ( as mentioned above, circ £600 p/m). This seems to contradict some of the other info on the income tax thread - is there a definitve answer on this at all??
Many thanks in advance for your help
Best Regards
I am new to the forum and have been browsing many really helpful posts! I am moving to Dubai from the UK on 7th April with my partner (both with jobs recently secured!) and had loads of questions, but many have been answered by browsing through the info on here ( I am sure I will think of some more soon : - )
The one area I am still unclear on is banking and the best way to do it, so I am hoping someone can break this down in the simplest way possible.
Here is my situation:
I bank with Natwest in the UK. Due to having an outstanding loan and the fact I have a Natwest credit card, I am going to follow the advice of one of the other threads and keep this account open so I already have a Mastercard I can use and also it makes things easier if/when I move back. My mortgage comes out of this account and the rent I will be earning from my UK property will be paid into this account.
I will be getting paid in AED from my company in Dubai into an account yet to be specified by me.
I will need to transfer circa £600 (AED4200) per month back from UAE to my UK Natwest account to cover the shorfall between rental income/mortgage and cover a few bills etc.
I am just trying to establish the best way to go about my banking:
Do I wait until I get to Dubai and set up a local one then transfer money back to the UK as and when? Do I set up an International account? I have noticed many International/Offshore ones ( such as Lloyds TSB) are in Euro, GBP or USD - how does this effect someone getting paid in AED, would I lose lots of money due to poor bank exchange rates etc? Also, what is the best way of taking £20k-£25k (GBP) from here to Dubai? (to buy furniture, a car etc) Would I lose out due to bad exchange rates doing this via a bank as opposed to going through Forex/Travelex etc?
Apologies if the question sounds similar to the ones in the other banking threads, but I couldnt see much info on them about getting paid in AED as many people seem to be getting paid in GBP or USD hence the questions are relating to that instead! I am a bit of a novice when it comes to this banking and finance lark :s
I did see a chartered accountant over here with regard to assistance with taxation on my rental income, and he seemed to think that I would NOT get taxed on any money transferred back from Dubai into my UK account ( as mentioned above, circ £600 p/m). This seems to contradict some of the other info on the income tax thread - is there a definitve answer on this at all??
Many thanks in advance for your help
Best Regards
Mar 25th 2008, 11:22 am
#2
why ayeeeee man!
Joined: Jan 2008
Location: Disco Gardens...
Posts: 11,370
Re: Hello and banking help please (getting paid in AED....)
Hi guys,
I am new to the forum and have been browsing many really helpful posts! I am moving to Dubai from the UK on 7th April with my partner (both with jobs recently secured!) and had loads of questions, but many have been answered by browsing through the info on here ( I am sure I will think of some more soon : - )
The one area I am still unclear on is banking and the best way to do it, so I am hoping someone can break this down in the simplest way possible.
Here is my situation:
I bank with Natwest in the UK. Due to having an outstanding loan and the fact I have a Natwest credit card, I am going to follow the advice of one of the other threads and keep this account open so I already have a Mastercard I can use and also it makes things easier if/when I move back. My mortgage comes out of this account and the rent I will be earning from my UK property will be paid into this account.
I will be getting paid in AED from my company in Dubai into an account yet to be specified by me.
I will need to transfer circa £600 (AED4200) per month back from UAE to my UK Natwest account to cover the shorfall between rental income/mortgage and cover a few bills etc.
I am just trying to establish the best way to go about my banking:
Do I wait until I get to Dubai and set up a local one then transfer money back to the UK as and when? Do I set up an International account? I have noticed many International/Offshore ones ( such as Lloyds TSB) are in Euro, GBP or USD - how does this effect someone getting paid in AED, would I lose lots of money due to poor bank exchange rates etc? Also, what is the best way of taking £20k-£25k (GBP) from here to Dubai? (to buy furniture, a car etc) Would I lose out due to bad exchange rates doing this via a bank as opposed to going through Forex/Travelex etc?
Apologies if the question sounds similar to the ones in the other banking threads, but I couldnt see much info on them about getting paid in AED as many people seem to be getting paid in GBP or USD hence the questions are relating to that instead! I am a bit of a novice when it comes to this banking and finance lark :s
I did see a chartered accountant over here with regard to assistance with taxation on my rental income, and he seemed to think that I would NOT get taxed on any money transferred back from Dubai into my UK account ( as mentioned above, circ £600 p/m). This seems to contradict some of the other info on the income tax thread - is there a definitve answer on this at all??
Many thanks in advance for your help
Best Regards
I am new to the forum and have been browsing many really helpful posts! I am moving to Dubai from the UK on 7th April with my partner (both with jobs recently secured!) and had loads of questions, but many have been answered by browsing through the info on here ( I am sure I will think of some more soon : - )
The one area I am still unclear on is banking and the best way to do it, so I am hoping someone can break this down in the simplest way possible.
Here is my situation:
I bank with Natwest in the UK. Due to having an outstanding loan and the fact I have a Natwest credit card, I am going to follow the advice of one of the other threads and keep this account open so I already have a Mastercard I can use and also it makes things easier if/when I move back. My mortgage comes out of this account and the rent I will be earning from my UK property will be paid into this account.
I will be getting paid in AED from my company in Dubai into an account yet to be specified by me.
I will need to transfer circa £600 (AED4200) per month back from UAE to my UK Natwest account to cover the shorfall between rental income/mortgage and cover a few bills etc.
I am just trying to establish the best way to go about my banking:
Do I wait until I get to Dubai and set up a local one then transfer money back to the UK as and when? Do I set up an International account? I have noticed many International/Offshore ones ( such as Lloyds TSB) are in Euro, GBP or USD - how does this effect someone getting paid in AED, would I lose lots of money due to poor bank exchange rates etc? Also, what is the best way of taking £20k-£25k (GBP) from here to Dubai? (to buy furniture, a car etc) Would I lose out due to bad exchange rates doing this via a bank as opposed to going through Forex/Travelex etc?
Apologies if the question sounds similar to the ones in the other banking threads, but I couldnt see much info on them about getting paid in AED as many people seem to be getting paid in GBP or USD hence the questions are relating to that instead! I am a bit of a novice when it comes to this banking and finance lark :s
I did see a chartered accountant over here with regard to assistance with taxation on my rental income, and he seemed to think that I would NOT get taxed on any money transferred back from Dubai into my UK account ( as mentioned above, circ £600 p/m). This seems to contradict some of the other info on the income tax thread - is there a definitve answer on this at all??
Many thanks in advance for your help
Best Regards
Mar 25th 2008, 11:36 am
#3
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Hello and banking help please (getting paid in AED....)
Most people in the UAE are paid in Dirhams, but everyone is used to dealing with several currencies. Bear in mind that the UAE Dirham is pegged to the US Dollar.
In an ideal worls you shoud have several bank accounts. One in the Uk for convenience and dealing with UK issues, one in the UAE denominated in AED for pay and daily expenses and another offshore for the bulk of savings - this can be in GBP or USD as suits you. (I have offshore accounts in both currencies & move monies as suits).
If you are planning too make transfers in excess of GBP 10k, please contact me as I get give you details of a service that my clients use, which is both much more cost effective and quicker than using your own bank.
In an ideal worls you shoud have several bank accounts. One in the Uk for convenience and dealing with UK issues, one in the UAE denominated in AED for pay and daily expenses and another offshore for the bulk of savings - this can be in GBP or USD as suits you. (I have offshore accounts in both currencies & move monies as suits).
If you are planning too make transfers in excess of GBP 10k, please contact me as I get give you details of a service that my clients use, which is both much more cost effective and quicker than using your own bank.
Mar 26th 2008, 8:03 am
#4
Forum Regular
Thread Starter
Joined: Mar 2008
Posts: 178
Re: Hello and banking help please (getting paid in AED....)
Most people in the UAE are paid in Dirhams, but everyone is used to dealing with several currencies. Bear in mind that the UAE Dirham is pegged to the US Dollar.
In an ideal worls you shoud have several bank accounts. One in the Uk for convenience and dealing with UK issues, one in the UAE denominated in AED for pay and daily expenses and another offshore for the bulk of savings - this can be in GBP or USD as suits you. (I have offshore accounts in both currencies & move monies as suits).
If you are planning too make transfers in excess of GBP 10k, please contact me as I get give you details of a service that my clients use, which is both much more cost effective and quicker than using your own bank.
In an ideal worls you shoud have several bank accounts. One in the Uk for convenience and dealing with UK issues, one in the UAE denominated in AED for pay and daily expenses and another offshore for the bulk of savings - this can be in GBP or USD as suits you. (I have offshore accounts in both currencies & move monies as suits).
If you are planning too make transfers in excess of GBP 10k, please contact me as I get give you details of a service that my clients use, which is both much more cost effective and quicker than using your own bank.
The general consensus from reading other threads appears to be that Lloyds TSB are the best, followed by HSBC, followed by Barclays - is this correct?
Meow, is that with regard to transfers from GBP to AED or the other way round (or both??)??
I have looked at things like Moneycorp, Hifx etc - is it along similar lines?
Many thanks
Mar 26th 2008, 10:12 am
#5
Forum Regular
Joined: Mar 2008
Posts: 44
Re: Hello and banking help please (getting paid in AED....)
HI, I am moving to abu dhabi on 4/4/2008 from London. I am keeping my Barclays account and opening UAE account with lets say HSBC in UAE. Since my employer pays me in £, I will be opening account in £ in UAE. Transfer cost from HSBC in UAE to UK is AED50 wihich approx £7.5. You can transfer once a month or if you have enough spare cash once every quarter into UK account.
No need to offshore accounts, since UAE account is offshore and Tax free. Plus more accounts you have more you loose on exchange rates. So keep it simple and save on exchange rates.
Best and Safest way to transfer is via your bank in UK to your new account in UAE. You can have a bankers Draft / International MOney order made to your name by your bank in UK and when you open your account in UAE, just deposit it then.
I also have house in UK which I am putting on rent. Since I changed my mortgage to interest only I wont have short fall from rent, but will be within my Tax allowance of £5250 (for 2007-2008). Since house is joint ownership infact our allowance for tax will be £10500. Dont forget that you need to fill an form in to let HMRC know that you are leaving UK. and Fill in a form to let them know that you will overseas landlord so you can get your rent gross other wise you will get taxed on your rent (amount taken out by your letting agent by law).
You will need to do Self Assessment once a year for UK tax due to renting out your property.
No need to offshore accounts, since UAE account is offshore and Tax free. Plus more accounts you have more you loose on exchange rates. So keep it simple and save on exchange rates.
Best and Safest way to transfer is via your bank in UK to your new account in UAE. You can have a bankers Draft / International MOney order made to your name by your bank in UK and when you open your account in UAE, just deposit it then.
I also have house in UK which I am putting on rent. Since I changed my mortgage to interest only I wont have short fall from rent, but will be within my Tax allowance of £5250 (for 2007-2008). Since house is joint ownership infact our allowance for tax will be £10500. Dont forget that you need to fill an form in to let HMRC know that you are leaving UK. and Fill in a form to let them know that you will overseas landlord so you can get your rent gross other wise you will get taxed on your rent (amount taken out by your letting agent by law).
You will need to do Self Assessment once a year for UK tax due to renting out your property.
Mar 26th 2008, 10:19 am
#6
A Natural Blonde
Joined: Dec 2004
Location: Dubai
Posts: 410
Re: Hello and banking help please (getting paid in AED....)
HSBC charges for EVERYTHING!! We're currently with them and although they have been very good with us, we're going to change soon to Lloyds TSB. I'm sure they allow 1 or 2 free transfers per month which comes in very handy for sending money home to cover bills etc.
Mar 26th 2008, 11:09 am
#7
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Hello and banking help please (getting paid in AED....)
Thank you for your help guys!
The general consensus from reading other threads appears to be that Lloyds TSB are the best, followed by HSBC, followed by Barclays - is this correct?
Meow, is that with regard to transfers from GBP to AED or the other way round (or both??)??
I have looked at things like Moneycorp, Hifx etc - is it along similar lines?
Many thanks
The general consensus from reading other threads appears to be that Lloyds TSB are the best, followed by HSBC, followed by Barclays - is this correct?
Meow, is that with regard to transfers from GBP to AED or the other way round (or both??)??
I have looked at things like Moneycorp, Hifx etc - is it along similar lines?
Many thanks
Yes, similar, but I can vouch for this lot not messing things up and you have me to hold your hand! 
HSBC charges & service depends on how much money you have. If you have a Premier account they tend to love you (so shallow).
Mar 26th 2008, 11:13 am
#8
A Natural Blonde
Joined: Dec 2004
Location: Dubai
Posts: 410
Re: Hello and banking help please (getting paid in AED....)
We do! They obviously don't love us that much!! 
Mar 26th 2008, 11:14 am
#9
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Hello and banking help please (getting paid in AED....)
You maybe need to put some money in it Zannie? Or undo a couple more buttons next time you see them...
Mar 27th 2008, 7:30 am
#10
Now 15% less offensive
Joined: Jul 2004
Location: Poole, Dorset. (Ex. Dubai, but might be back soon)
Posts: 793
Re: Hello and banking help please (getting paid in AED....)
I am with Natwest in the UK and decided to stick with em whilst I am out here.
So far, I have managed to open two offshore accounts in Jersey (Multi currency high interest savings account, and a GBP personal account for dealing with UK outgoings - mortgage etc). I don't have a local Dirham account (Natwest have partnered with Mashreq) yet, but I can have one as soon as my visa is sorted.
I did all this without setting foot in a bank. (Actually, I arranged this in a bar with the Natwest Representative here).
If you want his contact details then PM me.
So far, I have managed to open two offshore accounts in Jersey (Multi currency high interest savings account, and a GBP personal account for dealing with UK outgoings - mortgage etc). I don't have a local Dirham account (Natwest have partnered with Mashreq) yet, but I can have one as soon as my visa is sorted.
I did all this without setting foot in a bank. (Actually, I arranged this in a bar with the Natwest Representative here).
If you want his contact details then PM me.
Mar 27th 2008, 7:31 am
#11
Now 15% less offensive
Joined: Jul 2004
Location: Poole, Dorset. (Ex. Dubai, but might be back soon)
Posts: 793
Re: Hello and banking help please (getting paid in AED....)
OH!!!
And can I borrow your card reader when you come???
And can I borrow your card reader when you come???
Mar 27th 2008, 7:35 am
#12
Now 15% less offensive
Joined: Jul 2004
Location: Poole, Dorset. (Ex. Dubai, but might be back soon)
Posts: 793
Re: Hello and banking help please (getting paid in AED....)
That is a good point BUT, if you end up in hot water here, I believe that your local UAE bank accounts are frozen.
I have been advised to only put 'pin money' into a local Dirham account. It's much safer to keep the bulk of your cash offshore e.g. Jersey.
Mar 27th 2008, 8:15 am
#13
BE Forum Addict
Joined: Mar 2007
Location: Abu Dhabi
Posts: 3,968
Re: Hello and banking help please (getting paid in AED....)
YES YES YES
only keep here spending money....get all the rest out of the country (pref offshore)
Mar 27th 2008, 9:16 am
#14
Forum Regular
Thread Starter
Joined: Mar 2008
Posts: 178
Re: Hello and banking help please (getting paid in AED....)
HSBC need me to have £60k for a premier or status account. I am 22, have a mortgage in South East England and rent to pay in Dubai. How am I meant to have £60k for a bank account
Mar 27th 2008, 9:23 am
#15
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Hello and banking help please (getting paid in AED....)
The service is regulated - you will need to prove identy & address. PM me for info.
The monies from the sale of your car can be paid into a UK bank account and once it has cleared you can then transfer it to an offshore account. If you have been through the money landering checks, I really don't understand why your bank won't accept a transfer. Which bank is this?
The monies from the sale of your car can be paid into a UK bank account and once it has cleared you can then transfer it to an offshore account. If you have been through the money landering checks, I really don't understand why your bank won't accept a transfer. Which bank is this?