Going back to the UK
May 30th 2020, 7:50 pm
#16
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Re: Going back to the UK
I have another couple of questions, going back to the U.K. what is the average cost per Month of utilities like gas,electric, water, council tax and car insurance also TV, just trying to work it out.
Any answers would be appreciated
Any answers would be appreciated
May 30th 2020, 9:51 pm
#17
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Re: Going back to the UK
Electric + Gas £1,088/year
Phone £14/mo unlimited voice and text, 4GB data
Internet & Basic cable (no movies or sports packages) £60/mo
car insurance £190/year
house insurance £93/year
council tax £2,444/year
water £338/year (metered)
Car tax £137/year
Car fuel (5,000 miles) £545
TV licence £150/year
May 31st 2020, 12:06 am
#18
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Re: Going back to the UK
May 31st 2020, 8:33 am
#19
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Re: Going back to the UK
We walk a lot as well, rarely use the car to go shopping etc. However we are retired and do a lot of traveling hence the mileage. This year because of Covid it is quite different.
May 31st 2020, 1:38 pm
#20
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Re: Going back to the UK
Would you mind adding roughly what a weekly food and household supplies shop for two comes out to? I'm making notes. Not able to move yet, but need the knowledge.
May 31st 2020, 1:47 pm
#21
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Re: Going back to the UK
May 31st 2020, 3:27 pm
#22
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Re: Going back to the UK
I really don't know what we spend each week on this, it's all lumped into our monthly credit card bill which includes meals out etc.
Jun 3rd 2020, 12:39 pm
#23
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Re: Going back to the UK
We returned to the UK in 2016 as retirees after 29 years in the USA. We are both dual UK/US citizens.
Advice I would give is to do some financial preparation ahead of time.
1) Not all banks will support an overseas address. Ours did not so we switched banks well ahead of time and had my US private pensions changed to go there etc.
2) Similar advice to your 401k providers. My wife and I each rolled our 401ks into IRAs in a brokerage that does support overseas customers.
3) If you have mutual funds in taxable accounts (outside of IRAs, 401ks etc) then if you switch them to HMRC Reporting Funds then they will receive the favorable lower tax treatment given to capital gains and qualified dividends.
4) Retain a US bank and credit card, and a US phone number. (US Phone numbers can be obtained through Skype, Google etc). For example our brokerage occasionally requires 2nd level verification when logging on and that is the number we use as it doesn't support international numbers to send verification codes to.
5) In the UK folks are taxed as individuals only, so if your income is lopsided as ours is, then look at how you may minimize taxes. For example we took my name off our after-tax brokerage account so that our interest payments, qualified dividends and capital tax gains are completely free of UK tax as my wife's personal tax free allowance of £12,500 plus the cap gains tax free allowance of £12,300 and qualified dividend tax free allowance of £2,000 more than covers it.
Advice I would give is to do some financial preparation ahead of time.
1) Not all banks will support an overseas address. Ours did not so we switched banks well ahead of time and had my US private pensions changed to go there etc.
2) Similar advice to your 401k providers. My wife and I each rolled our 401ks into IRAs in a brokerage that does support overseas customers.
3) If you have mutual funds in taxable accounts (outside of IRAs, 401ks etc) then if you switch them to HMRC Reporting Funds then they will receive the favorable lower tax treatment given to capital gains and qualified dividends.
4) Retain a US bank and credit card, and a US phone number. (US Phone numbers can be obtained through Skype, Google etc). For example our brokerage occasionally requires 2nd level verification when logging on and that is the number we use as it doesn't support international numbers to send verification codes to.
5) In the UK folks are taxed as individuals only, so if your income is lopsided as ours is, then look at how you may minimize taxes. For example we took my name off our after-tax brokerage account so that our interest payments, qualified dividends and capital tax gains are completely free of UK tax as my wife's personal tax free allowance of £12,500 plus the cap gains tax free allowance of £12,300 and qualified dividend tax free allowance of £2,000 more than covers it.
Jun 3rd 2020, 1:51 pm
#25
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Joined: Jan 2013
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Re: Going back to the UK
I'd imagine that the ease or otherwise of getting a mortgage will be the same as for anywhere, it's really just a case of does the mortgage provider consider you a good credit risk, do you have the required deposit, is your income sufficient to service the mortgage payments, is the property valued appropriately, that sort of thing.
Jun 13th 2020, 2:31 am
#26
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Re: Going back to the UK
We returned to the UK in 2016 as retirees after 29 years in the USA. We are both dual UK/US citizens.
5) In the UK folks are taxed as individuals only, so if your income is lopsided as ours is, then look at how you may minimize taxes. For example we took my name off our after-tax brokerage account so that our interest payments, qualified dividends and capital tax gains are completely free of UK tax as my wife's personal tax free allowance of £12,500 plus the cap gains tax free allowance of £12,300 and qualified dividend tax free allowance of £2,000 more than covers it.
5) In the UK folks are taxed as individuals only, so if your income is lopsided as ours is, then look at how you may minimize taxes. For example we took my name off our after-tax brokerage account so that our interest payments, qualified dividends and capital tax gains are completely free of UK tax as my wife's personal tax free allowance of £12,500 plus the cap gains tax free allowance of £12,300 and qualified dividend tax free allowance of £2,000 more than covers it.
Jun 13th 2020, 7:50 am
#27
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Re: Going back to the UK
Yes, the rules on withdrawing before 59.5 still apply, they apply to both IRAs and 401ks. If you make a withdrawal from an IRA then it is taxed as regular income in the UK without the 10% penalty and it is taxed as regular income in the USA plus the 10% penalty. Normally one would use a foreign tax credit to reduce the US tax paid and I don’t know if that tax credit would be applied to the US tax + 10% penalty or just to the US tax paid.
Jun 13th 2020, 2:29 pm
#28
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Re: Going back to the UK
I found this website which gives you a look at the cost of living by city: https://www.numbeo.com/cost-of-living/
Jun 13th 2020, 2:34 pm
#29
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Re: Going back to the UK
I found this website which gives you a look at the cost of living by city: https://www.numbeo.com/cost-of-living/
Jun 20th 2020, 1:37 am
#30
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Re: Going back to the UK
Yes, the rules on withdrawing before 59.5 still apply, they apply to both IRAs and 401ks. If you make a withdrawal from an IRA then it is taxed as regular income in the UK without the 10% penalty and it is taxed as regular income in the USA plus the 10% penalty. Normally one would use a foreign tax credit to reduce the US tax paid and I don’t know if that tax credit would be applied to the US tax + 10% penalty or just to the US tax paid.