The Process of Remittance to the United Kingdom Has Become Easy and Hassle Free

Money ⯀  

A remittances are the funds an expatriate sends to their country of origin via wire, mail, or online transfer. These peer to peer transfers of funds across borders are economically significant for many countries that receive them.

Things no one tells you about sending money to the United Kingdom from abroad

If we take a look at the remittance industry, surveys reveal that numerous migrants have sent a record high of more than $500bn (£320bn) in remittances globally.

In the year 2011, remittances from the UK were more than $3.2 billion which was absolutely amazing. As per the estimates, money remittance to the UK, including unrecorded transfers through formal and informal channels, could be worth up to $23 billion. So, one can imagine how the remittance industry is developing in the United Kingdom. Numerous websites are offering competitive rates in order to assist in sending money to the United Kingdom.

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Through this article, we tell you things about sending money to the United Kingdom that no one tells you about.

1. You must state your purpose of remitting money to the United Kingdom

Pound sterling is a free floating but partially controlled currency. There are various laws in the United Kingdom that place restrictions on ‘when’ and ‘how’ foreign currency can be converted into Pound sterling. Some of those restrictions are based on the purpose of the payment. For example, those businesses you mention are probably using the Pound Drawing Arrangement and this cannot be used for Trade purposes or investments in other countries. So, one must state the genuine reasons for money remittance to avoid any kind of taxes when sending money to a United Kingdom bank account.

• Main Purposes of sending money to the United Kingdom
• Overseas Education.
• Overseas Employment
• Emigration Fees
• Visa Fees
• Film Making
• Maintenance of Close Relatives
• Medical treatment abroad

2. Taxes depend on the status of the individual when applying for money remittance to the United Kingdom

It all depends on the status of the individual whether he is a resident of the UK or not for tax considerations. When someone is a resident of the United Kingdom, you don’t have to pay any tax, except when international payments are received as income or in the form of capital gains. The only consideration is that you must report to the respective income tax departments. If you are a non-resident in the UK, tax is to be paid strictly according to the UK laws. That is why the whole process of money transfer to the UK depends on the residential status of the individual.

3. You might be paying a premium for faster transfers to the United Kingdom

You should take into consideration that some platforms charge you a high premium in exchange of speedy transfers. They can charge you almost $10 for bank account transfers and $11 for debit and credit card transfers for small and big amounts. So be cautious and look for wise options to send money to the UK at best rates.

4. You can send money directly to a United Kingdom bank account

InstaRem is a great way to send money to the United Kingdom and serves as a better, hassle-free and cost-effective means to send money to the UK for business or personal needs. typically takes one or two business days for international transfers in certain corridors, while others might take longer depending on the banking system of the destination country. It charges a nominal remittance fees. If you are remitting AUD to GBP, HKD to GBP or SGD to GBP via InstaReM, you have the advantage of transferring your funds at Live FX rates. In case of transferring funds overseas, you have to follow their 3-step process and the rest will be taken care by them. Therefore, it is recommended to use InstaReM to convert Australian dollars into GBP at best rates.

5. There is no limit to the amount of money you can send to the United Kingdom

There is no threshold limit on the amount of money that can be sent to the United Kingdom. However, if the sum exceeds £1,000,000, you have to declare it to the European authorities. This includes money transfers between residents and transfers into any foreign accounts held by residents. So, these things have to be kept in mind while transferring money to the United Kingdom.

By  Dilip Bariya	Embed
Dilip is part of the Digital Marketing Team at the instarem.com, an online platform that is making International Money Transfers easy, safe and efficient for expat communities across multiple corridors.