This is according to a recent survey, A combination of improved financial prospects and the belief that quality of life is higher overseas seemed to be the main motivation behind expats’ decision to stay.
Despite the financial hardship that many expats, particularly those in Europe, have suffered due to adverse currency fluctuations since the beginning of the economic crisis, 64 per cent said they were still financially better-off abroad, with only a quarter saying that the cost of living was higher.
Britain’s grim economic outlook and the summer’s riots may have contributed to putting more than 800,000 expats off returning to their home country this year.
In February, Lloyds TBS International released a survey that suggested 67 per cent of expats had no plans to return to Britain – compared to just 56 per cent when the same survey was conducted six months before.
Now, research by the company has revealed that even more people (69 per cent) are planning to stay abroad permanently, with 15 per cent saying they have cancelled plans to return in just the past year.
A combination of improved financial prospects and the belief that quality of life is higher overseas seemed to be the main motivation behind expats’ decision to stay. Despite the financial hardship that many expats, particularly those in Europe, have suffered due to adverse currency fluctuations since the beginning of the economic crisis, 64 per cent said they were still financially better-off abroad, with only a quarter saying that the cost of living was higher.
Nearly three-quarters (74 per cent) per cent said their quality of life was higher, with 51 per cent agreeing that their new home was a better place to bring up children. Many expats also felt safer abroad, with just 13 per cent saying that their neighbourhoods in Britain had been less dangerous.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Monday 31 October 2011
Thursday 27 October 2011
Expat tax exile loses to HMRC in landmark ruling
The Supreme Court has ruled in favour of HMRC and upheld the decision to subject a millionaire expat to UK tax laws despite him spending most of his time in the Seychelles.
While the Lord Justices acknowledged that HMRC's position on how to achieve non-residency "should have been much clearer", a majority of four to one agreed that the guidance informed that in order to qualify for non-residency status, individuals would be required to leave the UK permanently, indefinitely or for full-time employment, and relinquish "usual residence" in the UK.
The solicitor representing retired millionaire Robert Gaines-Cooper immediately issued a stark warning to other expats, saying they too were "at high risk" if they followed official HMRC guidelines as to what constitutes UK residency for tax purposes.
Robert Gaines-Cooper has spent more than 30 years living in the Seychelles but in 2006 HMRC decided that his close connections with the UK, including a large estate in Henley-on-Thames and his regular trips to Ascot, meant that he was both resident and domiciled in his home country, and liable for a backdated tax bill.
He has always maintained he followed the non-residency guidelines set out in HMRC's official IR20 booklet, but after today's decision will now be obliged to pay the backdated tax as well as his legal fees, expected to run into the millions.
Peter Vains, head of tax at the London office of solicitors Squire, Sanders & Dempsey, who represented Mr Gaines-Cooper, said: "He will pay what he is due. It was never about tax but about what was right and wrong. He satisfied all of the guideline terms but the revenue and courts have decided that some additional terms need to be implied in the reading.
"The Supreme Court is the ultimate authority, so one can't complain, but it is harsh."
While the Lord Justices acknowledged that HMRC's position on how to achieve non-residency "should have been much clearer", a majority of four to one agreed that the guidance informed that in order to qualify for non-residency status, individuals would be required to leave the UK permanently, indefinitely or for full-time employment, and relinquish "usual residence" in the UK.
Returns to the UK had to be no more than "visits", while UK property kept by the taxpayer for their use could not be used as a place of residence.
The IR20 will be abolished as of April next year and replaced by a statutory residence test.
Commenting on the case, Sean Drury, partner at PricewaterhouseCoopers said: "With a statutory residence test expected to come into effect in April 2012, the issues at stake in the Gaines-Cooper judgement will soon be of historic interest only.
"However, the Supreme Court's judgment has underlined that international businesses cannot rely on HMRC guidance, only on the interpretation of statute through the courts
"With significant tax costs associated with internationally mobile employees, companies sending employees into and out of the UK would welcome more clarity in managing these costs and for it not to be subject to interpretation on a case by case basis by HMRC.
"With a significant number of enquiries still open into the affairs of internationally mobile employees impacted by this judgment, we hope HMRC adopts a practical approach in closing these enquiries down before the new rules come into effect next April."
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
While the Lord Justices acknowledged that HMRC's position on how to achieve non-residency "should have been much clearer", a majority of four to one agreed that the guidance informed that in order to qualify for non-residency status, individuals would be required to leave the UK permanently, indefinitely or for full-time employment, and relinquish "usual residence" in the UK.
The solicitor representing retired millionaire Robert Gaines-Cooper immediately issued a stark warning to other expats, saying they too were "at high risk" if they followed official HMRC guidelines as to what constitutes UK residency for tax purposes.
Robert Gaines-Cooper has spent more than 30 years living in the Seychelles but in 2006 HMRC decided that his close connections with the UK, including a large estate in Henley-on-Thames and his regular trips to Ascot, meant that he was both resident and domiciled in his home country, and liable for a backdated tax bill.
He has always maintained he followed the non-residency guidelines set out in HMRC's official IR20 booklet, but after today's decision will now be obliged to pay the backdated tax as well as his legal fees, expected to run into the millions.
Peter Vains, head of tax at the London office of solicitors Squire, Sanders & Dempsey, who represented Mr Gaines-Cooper, said: "He will pay what he is due. It was never about tax but about what was right and wrong. He satisfied all of the guideline terms but the revenue and courts have decided that some additional terms need to be implied in the reading.
"The Supreme Court is the ultimate authority, so one can't complain, but it is harsh."
While the Lord Justices acknowledged that HMRC's position on how to achieve non-residency "should have been much clearer", a majority of four to one agreed that the guidance informed that in order to qualify for non-residency status, individuals would be required to leave the UK permanently, indefinitely or for full-time employment, and relinquish "usual residence" in the UK.
Returns to the UK had to be no more than "visits", while UK property kept by the taxpayer for their use could not be used as a place of residence.
The IR20 will be abolished as of April next year and replaced by a statutory residence test.
Commenting on the case, Sean Drury, partner at PricewaterhouseCoopers said: "With a statutory residence test expected to come into effect in April 2012, the issues at stake in the Gaines-Cooper judgement will soon be of historic interest only.
"However, the Supreme Court's judgment has underlined that international businesses cannot rely on HMRC guidance, only on the interpretation of statute through the courts
"With significant tax costs associated with internationally mobile employees, companies sending employees into and out of the UK would welcome more clarity in managing these costs and for it not to be subject to interpretation on a case by case basis by HMRC.
"With a significant number of enquiries still open into the affairs of internationally mobile employees impacted by this judgment, we hope HMRC adopts a practical approach in closing these enquiries down before the new rules come into effect next April."
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Wednesday 26 October 2011
Expat workers move abroad to improve their career
Three in four expat global workers work abroad in order to make a career jump which is seen as the main reason for taking a job overseas, new research reveals. But while 84% take an overseas job to improve their career, 83% also say it is for the diversity of experiences that they will encounter and 79% say it is to experience different cultures.
An increasing numbers of British workers are being posted globally on temporary assignments while maintaining a UK base, the fourth annual NatWest International Personal Banking (IPB) Quality of Life Index also shows.
Around three quarters of a million British workers currently travel overseas to work abroad each year. The ratio of temporary to permanent workers is currently five to one however, it looks set to rise to ten to one by 2020.
The increased use of temporary global workers means that the traditional definition of expatriation is blurring as Britain engages in a global market of brain exchange, says the report.
Countries are progressively sharing their talent rather than keeping hold of it, a phenomenon fuelled by global expat commuters.
The research says there is a new group it calls GenXYpats with Generations X born between 1964 and 1981 and Y born between 1982 and 1992 who choose to live and pursue careers on foreign shores. They are a new niche demographic and psychographic spanning the life stages, generations of knowledge nomads, seeking temporary work overseas.
Expats view working overseas as a positive experience with 52% rating their overall quality of working life as either excellent or very good. English speaking countries are most popular amongst professional expats with Australia, Canada and the USA emerging top of the list. The GenXYpats are drawn to global working, with 48% choosing to take up temporary posts overseas compared to 28% aged over 50.
Expatriate workforces are also becoming more cosmopolitan with more than 50% of companies now employing more than one nationality. Women make up 22% of the expatriate workforce, up from 6% 15 years ago. In terms of the time spent overseas, the average time spent working out of the country on various assignments is 5.4 years.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
An increasing numbers of British workers are being posted globally on temporary assignments while maintaining a UK base, the fourth annual NatWest International Personal Banking (IPB) Quality of Life Index also shows.
Around three quarters of a million British workers currently travel overseas to work abroad each year. The ratio of temporary to permanent workers is currently five to one however, it looks set to rise to ten to one by 2020.
The increased use of temporary global workers means that the traditional definition of expatriation is blurring as Britain engages in a global market of brain exchange, says the report.
Countries are progressively sharing their talent rather than keeping hold of it, a phenomenon fuelled by global expat commuters.
The research says there is a new group it calls GenXYpats with Generations X born between 1964 and 1981 and Y born between 1982 and 1992 who choose to live and pursue careers on foreign shores. They are a new niche demographic and psychographic spanning the life stages, generations of knowledge nomads, seeking temporary work overseas.
Expats view working overseas as a positive experience with 52% rating their overall quality of working life as either excellent or very good. English speaking countries are most popular amongst professional expats with Australia, Canada and the USA emerging top of the list. The GenXYpats are drawn to global working, with 48% choosing to take up temporary posts overseas compared to 28% aged over 50.
Expatriate workforces are also becoming more cosmopolitan with more than 50% of companies now employing more than one nationality. Women make up 22% of the expatriate workforce, up from 6% 15 years ago. In terms of the time spent overseas, the average time spent working out of the country on various assignments is 5.4 years.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Monday 24 October 2011
Lack of clarity for expats in China around social insurance payments
New laws forcing expat workers and their employers to contribute into China’s social welfare scheme are causing confusion among those expected to pay.
On October 15, legislation came into effect making it compulsory for foreign workers and the companies that employ them to pay a portion of their salary to the Chinese government.
But the hundreds of thousands of individuals affected by the tax-grab still don’t know when payments are due to be made and how the new scheme will be implemented. Typically, when a new Chinese law becomes effective implementation rules are issued shortly afterwards explaining how the new law will work.
However, these rules are not likely to be issued until the end of November and employers are in the dark as to what they will be liable for. The level of contributions is expected to average 11 per cent for employees and 37 per cent for employers. The money will go towards benefits such as pension provision, medical insurance and unemployment benefit.
There are further complications, as the payments aren’t calculated on a unified national basis but vary from region to region. For example, Beijing-based employers will pay 33 per cent while Shanghai-based ones will pay 37 per cent.
There are also local differences on which authorities are removing a salary cap on how much employers will have to contribute for high-earning staff.
Confusion also arises from conflicting reports as to when the payments will be backdated to and how long employers have to make these first contributions. It has been suggested by a quasi-government agency in Beijing (FESCO) that payments will be backdated to July and should be collected by the end of the year.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
On October 15, legislation came into effect making it compulsory for foreign workers and the companies that employ them to pay a portion of their salary to the Chinese government.
But the hundreds of thousands of individuals affected by the tax-grab still don’t know when payments are due to be made and how the new scheme will be implemented. Typically, when a new Chinese law becomes effective implementation rules are issued shortly afterwards explaining how the new law will work.
However, these rules are not likely to be issued until the end of November and employers are in the dark as to what they will be liable for. The level of contributions is expected to average 11 per cent for employees and 37 per cent for employers. The money will go towards benefits such as pension provision, medical insurance and unemployment benefit.
There are further complications, as the payments aren’t calculated on a unified national basis but vary from region to region. For example, Beijing-based employers will pay 33 per cent while Shanghai-based ones will pay 37 per cent.
There are also local differences on which authorities are removing a salary cap on how much employers will have to contribute for high-earning staff.
Confusion also arises from conflicting reports as to when the payments will be backdated to and how long employers have to make these first contributions. It has been suggested by a quasi-government agency in Beijing (FESCO) that payments will be backdated to July and should be collected by the end of the year.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Wednesday 19 October 2011
Number of expatriates on the increase
More people head to China seeking out job opportunities as Western economies suffer hardship. An increasing number of foreigners are being attracted by China's prosperous economy and have come to work in the country.
Figures released by the Ministry of Human Resources and Social Security showed that 231,700 foreigners were employed in China at the end of 2010, compared with 223,000 in 2009.
Foreigners are finding jobs in China on the back of its strong economy, which is performing vastly better than that of the United States or Europe, suggests a spokesperson for a leading Consulting firm in China.
"This year, China's average gross domestic product increase is about 8 to 10 percent. This has created more opportunities, especially within the financial services, pharmaceutics as well as the retail industry,".
"The country provides an abundance of bigger career platforms and opportunities. We have witnessed both international investment companies and local Chinese companies focusing on expansion plans within the past decade. Besides the strong need for international talent to grow their businesses in China, they also require top-tier candidates for their businesses in international markets."
The talent consultant added there was a rising trend for local Chinese companies capable and willing to offer international compensation packages and benefits that are targeted for expatriates working in China.
The spokesperson went on to point out that managing skilled people from other cultures posed a special challenge to companies because it is essential to be fair and culturally sensitive to both nationals and expatriates, especially given that talent management is the top priority for most chief executive officers today.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Figures released by the Ministry of Human Resources and Social Security showed that 231,700 foreigners were employed in China at the end of 2010, compared with 223,000 in 2009.
Foreigners are finding jobs in China on the back of its strong economy, which is performing vastly better than that of the United States or Europe, suggests a spokesperson for a leading Consulting firm in China.
"This year, China's average gross domestic product increase is about 8 to 10 percent. This has created more opportunities, especially within the financial services, pharmaceutics as well as the retail industry,".
"The country provides an abundance of bigger career platforms and opportunities. We have witnessed both international investment companies and local Chinese companies focusing on expansion plans within the past decade. Besides the strong need for international talent to grow their businesses in China, they also require top-tier candidates for their businesses in international markets."
The talent consultant added there was a rising trend for local Chinese companies capable and willing to offer international compensation packages and benefits that are targeted for expatriates working in China.
The spokesperson went on to point out that managing skilled people from other cultures posed a special challenge to companies because it is essential to be fair and culturally sensitive to both nationals and expatriates, especially given that talent management is the top priority for most chief executive officers today.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Tuesday 18 October 2011
Thailand named as top expat destination
Thailand is the top destination for people looking to relocate overseas.
This is according to the preliminary results of the 2011 HSBC Expat Explorer survey, which questioned 3,385 expats from over 100 countries to find their thoughts.
The south-east Asian nation was ranked highly for its economic and lifestyle factors, which may make it an attractive option for individuals seeking a global health insurance policy, while Egypt and Saudi Arabia came second and third respectively.
A total of 31 countries around the world were included in the survey, ranging from developed nations such as the US and UK to emerging economies including Brazil and India.
It revealed that, despite global economic uncertainty in 2010, optimism remains high among expatriates, with many satisfied with the performance of their chosen destination.
There was also a rise in the number of people reporting an improvement in their financial situation since moving overseas, with 63 per cent saying they now have more disposable income since relocating, compared with 56 per cent last year.
Meanwhile, the number of people planning to remain in their current location dropped, with 64 per cent not intending to relocate to another country, compared with 87 per cent in 2010.
A spokesperson at HSBC Bank International said the final results of the survey will make for interesting reading, as it should reveal how expatriates have been affected by the major global events that have taken place over the last 21 months, from economic difficulties to political and social unrest.
"Our findings this year show Thailand as the top expat destination, being ranked as number one by our expats for ease of organising healthcare, finding accommodation and the work environment,".
"In last year's survey, it ranked highly as an option for retirees, so it is good to see it improving its economic appeal," they added.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
This is according to the preliminary results of the 2011 HSBC Expat Explorer survey, which questioned 3,385 expats from over 100 countries to find their thoughts.
The south-east Asian nation was ranked highly for its economic and lifestyle factors, which may make it an attractive option for individuals seeking a global health insurance policy, while Egypt and Saudi Arabia came second and third respectively.
A total of 31 countries around the world were included in the survey, ranging from developed nations such as the US and UK to emerging economies including Brazil and India.
It revealed that, despite global economic uncertainty in 2010, optimism remains high among expatriates, with many satisfied with the performance of their chosen destination.
There was also a rise in the number of people reporting an improvement in their financial situation since moving overseas, with 63 per cent saying they now have more disposable income since relocating, compared with 56 per cent last year.
Meanwhile, the number of people planning to remain in their current location dropped, with 64 per cent not intending to relocate to another country, compared with 87 per cent in 2010.
A spokesperson at HSBC Bank International said the final results of the survey will make for interesting reading, as it should reveal how expatriates have been affected by the major global events that have taken place over the last 21 months, from economic difficulties to political and social unrest.
"Our findings this year show Thailand as the top expat destination, being ranked as number one by our expats for ease of organising healthcare, finding accommodation and the work environment,".
"In last year's survey, it ranked highly as an option for retirees, so it is good to see it improving its economic appeal," they added.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
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