Huahinian wrote:.................... As far as I am aware, it is only the State pension that is frozen - my pension certainly increases each year..........................
This is my understanding. You have paid for the pension. No funds management company would have the right to alter your allowance just because you live elsewhere. The Government are taking liberties IMO and if I were subject to their reduction for living abroad I would take the case to the highest court available.
Anyway I understand the pension is private even though she may be entitled to a small UK pension under certain circumstances.
There are a two or three issues here that need to be separated out. IMO the best way to get answers is to address them all individually. An accountant should be able to advise on the best way to handle finances but the rights to travel to the UK must be direct with UK immigration.
My opinion point by point is
She is going to rent her home out, and move everything else to Thailand.
She needs a reputable letting agent. Preferably one that has local knowledge but feelers elsewhere. It's a good idea to have a second one on standby as backup but be sure to let them both know what you are doing.
.............her company pension that she receives from her husband's employer ie she wants the money transferred direct to Thailand every month. .............
She is entirely at the mercy of the Asset Management Company that makes the payment. My experience is that they are quite good (unlike the UK Government) when it comes to paying by whatever method is required. There will be transfer charges and the general rule is that the longer it takes the less the charge. She need to ask what options (if any) are available and evaluate what is best for her.
- Is it feasible to get a UK company pension paid directly to a Thai bank account?
- If it is, I guess there will be money transfer + administration charges. Is this correct? Does anybody do it? What are the charges?
Maybe someone has but it will really be dependent on the company that actually makes the payment and the method of transfer (if at all), they use. This may be a third party. (the UK government uses a Dutch payment company).
- She obviously has to pay UK taxes on her income. Would that still be done at source, or does something else come in to play?
- I believe (not sure yet) that she will still be paying National Insurance. If she moves to Thailand, would that have to continue? If not, does anybody know how to stop it?
These two questions are somewhat related. Tax can be deducted ay source and then you go through the normal channels of tax returns where any over payments will be credited. NI can also be deducted at source. You can opt out of both but as far as tax is concerned you have to prove you are living abroad and have the rights of domicile there. She's Thai so no problem on that one. It does not mean to say that she is not elligible for tax on earnings though.
As someone has already said, the best thing to do here is to employ a specialist accountant. The fee will be offset by savings that she would not be aware of. E.g. travel and banking costs.
- For those who don't have their pensions paid direct to Thailand, how do you manage? I've suggested having it paid into a Nationwide account, and withdrawing via ATM.
- If she goes down the Nationwide route, how would she manage if she needed access to a large amount of money quickly?
The UK Bank account is one option and Nationwide does advertise free access to your cash abroad and even if they do skim a little off the transfer rate it is still cheap. To move large sums you need either telephone banking or preferably internet banking facilities. CHAPS transfers can then be made to any Thai account. For smaller amounts (under 6,000 GBP per year) and if you are not in a hurry the Bank of Bangkok clear cheques and send the money to a Thai account very cheaply but takes ten working days.
- Moving back to Thailand, how would she fare if she had to return to the UK to attend to her house for example? Does owning a UK property give her any rights when applying for a UK visa?
Above are just a few questions that come in to my head immediately, I am sure there will be more. I, and my friend would be very grateful for any advice you can give. Please don't feel restricted by the above questions - any constructive advice at all will be gratefully received.
Incidentally, I've already suggested giving her money to me - she didn't appreciate that advice Very Happy
I intend visiting her to sort things out on the 1st and 2nd December.
Maybe giving it to you was a joke but giving it to a registered accountant with power of attorney to make certain decisions and write cheques would be a good idea. I reckon you could find a decent accountant who could handle all of it and also liaise directly with the letting agency. It is a nightmare if you are abroad and your letting agency won't talk to your accountant without going through you especially if you are 7 or 8 hours time difference away.
So in summary I would
1. Identify a decent accountant who can handle all financial aspects.
2. Determine the payment options with the pension payment company.
3. Identify a decent letting agency and one in reserve.
4. Set up a UK bank account (Nationwide) if needed that will give the facilities you need along with internet banking.
Once that is in place it's only the visa issue required and I cannot advise there. You could make a start on a government web site. However if everything is setup correctly in the UK then trips to the UK should not be necessary.
My guess is that she will not be able to organise all that herself so I suppose that's what you will be doing.
BTW. Avoid personal finance managers unless you know one personally. They are there purely to get commission from steering you into their sponsored investment plans. It's what they want, not what you want. If they got wind of a case like this they would be crawling out of the woodwork.
