Todays Yacht Crew tip is REVIEW your banking situation:
A lot of crew we talk to bank offshore. If this is you can you answer the question WHY you do this? If not maybe it is time to have a rethink.
Typical answers may be:
1. TAX: The tax man can’t see my earnings. If this is your reason unfortunately you are mistaken. The tax man CAN see your earnings as the recent offshore disclosure facility has (or will very soon) taken care of this. Also, bear in mind that most tax authorities take a very dim view of people actively trying to hide their income. In most cases this is illegal.
2. Multi-currency accounts: I get paid in Euros but need to transfer some money to £ or $. This is a valid reason and a sensible option. It is always best to get paid into an account which is the same currency as your salary. This way you do not lose on the exchange rate, especially now as the Euro is so weak.
An offshore account can be great but use it for the right reasons. For many of you there are some much more beneficial options. If you can open an onshore account in the currency you are paid in this will be hugely beneficial for your credit rating and ability to borrow in the future (remember that mortgage you are finding hard to get?) UK crew, this is especially relevant to you and will be good news in the future for investments, properties, loans, credit cards etc.
Get in touch with us to talk about this more.
Next Tip for the day: Currency Exchange