Expenses whilst full timing

[r4dent]

You stop paying national insurance when you claim your state pension.

National Insurance and tax after State Pension age

Age-related tax allowance, calculating tax if you carry on working, National Insurance payments

www.gov.uk

I think you'll find that you can stop paying NI when you reach State Pension age regardless of whether you claim the pension or not!.
Stopping paying is not automatic, you have to notify your employer.
So those that work beyond pension age can stop paying NI on their pay packet.

My wife could have got her pension at 60 but continued working until she was 63.
She also deferred her state pension because of the tax implications.

She claimed her state pension at 63 and was given a lump sum of three years state pension plus interest. (she could have had an enhanced weekly pension, but the lump sum was a better deal for her).
She paid no NI on her salary after her 60th birthday.

If you are thinking of working beyond state retirement age take professional advice.

She ended up a few thousand ££ better off.

 

[r4dent]

We forecast our budget using a spread sheet I wrote
It projects your income and expenditure for the next year and graphs your daily bank balance.

You enter details of your incomings and outgoings . As well as specifying an amount you allocate a frequency (weekly monthly daily one off etc) and a date when it started or will starts. So if you enter a state pension of £150 a week from 1/1/2021 it will show nothing until 1/1/21 and then £150 on the 1/1/21 and every week thereafter.

I've put a few entries in as an example, but you will need to put you own values in there. The amount of detail you put in is up to you. Most months all you need to enter is your latest bank balance and its date.

The attached PDF shows he entries I made and the resulting graph.

I can't attach the Excel file, but if want a copy pm your email to me and I'll send you a copy.

Many thanks to Dads Train, he has told me how to attach an Excel File You just need to change the filetype and it works.

The file with the filetype ".txt" is in fact an ". xls" Just downline the file and rename it and Bob is your mothers brother.

Good luck

 

[gypo]

We forecast our budget using a spread sheet I wrote
It projects your income and expenditure for the next year and graphs your daily bank balance.

You enter details of your incomings and outgoings . As well as specifying an amount you allocate a frequency (weekly monthly daily one off etc) and a date when it started or will starts. So if you enter a state pension of £150 a week from 1/1/2021 it will show nothing until 1/1/21 and then £150 on the 1/1/21 and every week thereafter.

I've put a few entries in as an example, but you will need to put you own values in there. The amount of detail you put in is up to you. Most months all you need to enter is your latest bank balance and its date.

The attached PDF shows he entries I made and the resulting graph.

I can't attach the Excel file, but if want a copy pm your email to me and I'll send you a copy.

Good luck

Hi yes please it would be great to have the excel file, I can see to find the pm button if you could pm I'll reply to it with my email.
Thanks everyone who has replied, I've not got time atm to read through them properly, but will tomrw.
Thanks all
C

 

[Drover]

I did not notify anyone about ni tax, it stopped on my 65 birthday , I finished work just after my 67 birthday. So mine was automatic.
I claimed my pension on my 65 birthday,
My state pension is £900 every 4 weeks.

 

[longsword]

Whilst most of the EU is in the Shengen Zone Gibraltar and Ireland are not. Switzerland is not in the EU but is in the Shengen Zone. The same with Iceland and Norway. Basically you can’t really full time in Europe as we are not part of it. I don’t know what the rules about taking up residency in an EU Country would be now, but possibly more difficult than before.

 

[jagmanx]

We forecast our budget using a spread sheet I wrote
It projects your income and expenditure for the next year and graphs your daily bank balance.

You enter details of your incomings and outgoings . As well as specifying an amount you allocate a frequency (weekly monthly daily one off etc) and a date when it started or will starts. So if you enter a state pension of £150 a week from 1/1/2021 it will show nothing until 1/1/21 and then £150 on the 1/1/21 and every week thereafter.

I've put a few entries in as an example, but you will need to put you own values in there. The amount of detail you put in is up to you. Most months all you need to enter is your latest bank balance and its date.

The attached PDF shows he entries I made and the resulting graph.

I can't attach the Excel file, but if want a copy pm your email to me and I'll send you a copy.

Good luck

Yes budget both planning and actual are necessary.
There are various apps available which can help with daily/weekly/monthly spends but you cannot beat a proper Spreadsheet IMO
On said spreadsheet I also track daily mileage and camp fees fuel etc
I do one row for every day and columns for the expenses....I just like to know "where the cash goes"
You could have a few funds/budget accounts
1 Slush as you call it..Keep that in reserve. Although I appreciate that you will need to use some to begin with
2 Yearly add up all the known motorhome costs
Tax Insurance Service/MOT/Tyres/Battery .maybe £1000 a year
so "Save/move" £100 a month (So £1200 fopr the year) into that fund account and spend from it for the mentioned Items.
It might build up a small reserve for Minor emergencies (fridge repair/ puncture)
3 Then Food Fuel Camping etc etc comes from you main spending account
Judicious use of a credit card can help "Smooth the spending"

 

[jacquigem]

Whilst most of the EU is in the Shengen Zone Gibraltar and Ireland are not. Switzerland is not in the EU but is in the Shengen Zone. The same with Iceland and Norway. Basically you can’t really full time in Europe as we are not part of it. I don’t know what the rules about taking up residency in an EU Country would be now, but possibly more difficult than before.

Yes, we were told better to get our Spanish residancy before the transition period ends at the end of the year as it is likely to be harder to get next year . At the moment if you have 16K in a Spanish bank account for 3 months you should be ok. Otherwise you may be able to find a Police Station that will accept a regular pension payment of at least (I think) 600 Euro per month again into a Spanish Bank account. Next year might need to pass language tests etc.

 

[gypo]

There is plots of land over here near me between 8/10 thousand euros, but first you must go to the townhall before you buy any land and ask them if it is ok to put a motorhome or caravan on the land , just say to keep tools in while you work the land find a small village you will find them more helpful. Don't buy any thing with a building on the land incase the building is illegal then as the owner of the land you could end up with a big fine and made to knock the building down

Thanks Ken,
Is this something thing you are currently doing, if so have you had any issues from the authority's for living on the land? Are there many people doing this near you?
Thanks
D

 

[jagmanx]

Have you considered keeping your house and renting it out.
OK cashflow issues but maybe a better rental income and there will be appreciation.
From what you say you could get all the work done fairly easily !
Talk to your mortgage provider..they could well advance a small lump sum to get you through until pension arrives !
For a house unfurnished let might make better sense and be long-term (renewable every 2 years ! with a minor increase in rental or none..keeping tenants in place is good !)
AND no selling and buying fees

 

[Deleted member 9237]

Thanks Ken,
Is this something thing you are currently doing, if so have you had any issues from the authority's for living on the land? Are there many people doing this near you?
Thanks
D

When I first come to Spain I made the mistake and brought a house that was not legal because it was cheap cost me a lot of money to make it legal to live in, I have a friend who has lived on his land for 3 years now with no problem's I will find out were he went and send you a PM with the address and you can email them .

 

[gypo]

When I first come to Spain I made the mistake and brought a house that was not legal because it was cheap cost me a lot of money to make it legal to live in, I have a friend who has lived on his land for 3 years now with no problem's I will find out were he went and send you a PM with the address and you can email them .

Many thanks Ken that would be great,
Jagmanx we did think of keeping the house, but by selling it and buying a flat we will be down Sizing for when the day comes we decide to return and also releasing some equity in the house.
Rental for the house would probably be 1k a month where the flat would be £750pm, we figure that once settled into a routine we could easily manage on the £750, I understand this will be a little less once the letting agent takes a fee.
Thanks
Dean

 

[jagmanx]

Many thanks Ken that would be great,
Jagmanx we did think of keeping the house, but by selling it and buying a flat we will be down Sizing for when the day comes we decide to return and also releasing some equity in the house.
Rental for the house would probably be 1k a month where the flat would be £750pm, we figure that once settled into a routine we could easily manage on the £750, I understand this will be a little less once the letting agent takes a fee.
Thanks
Dean

Ok good you have thought it though and you will be releasing equity but still keeping a property for ahead !

 

[Drover]

When I first come to Spain I made the mistake and brought a house that was not legal because it was cheap cost me a lot of money to make it legal to live in, I have a friend who has lived on his land for 3 years now with no problem's I will find out were he went and send you a PM with the address and you can email them .

Spain has some very strange property laws, you need a very good English speaking Spanish solicitor to check things when buying in Spain I have family living in Spain , an order put on a property hundreds of years ago by a government/court will still be due at any time.
A place in the sun (yes the tv programme) did have solicitors on it. Not sure if they still do but it might be worth checking. I used one when looking in Spain and they said not to buy what we wanted as they could not get proof of Deeds from a split piece of land . It would stay owned by whoever held the original deeds and they could not be found.
I say deeds but cant remember the spanish equivalent wording.

 

[in h]

wouldn't be such a problem if we had to return every now and again to comply

I'm not sure you have grasped the implications here.
If you are in the EU for 90 days in any 180 period, you have to leave the EU for a full 90 days before you can come back in.
Alternatively, if you are in the EU for two months, then in the UK or elsewhere for a month, you can then only return to the EU for another month before having to leave. You can't then return until the "number of days in the EU in the last 180 days" falls below 90.
It's not just a matter of returning "every now and again".

 

[in h]

We have worked out that if we sell our house and buy a flat we can get a rental income from the flat of at least £750pm with no mortgage.
In a years time I will be able to take a pension of approx 9k a year.

Be careful when choosing the flat. Leaving aside the stamp duty ramifications, as long as you are "young retired" and are both in good health it should be fine.

If something goes wrong (one of you gets health problems, which tends to happen as people age) or one (or both) of you tire of the nomadic lifestyle, or your relationship falls apart, you will probably find it quite tricky to get rid of the tenants, and even harder to sell the flat and buy something that suits you as a home.

You will find it very hard to get a mortgage at that point, so changing properties then will be difficult.

My advice is to buy a house that will be suitable for you to live in on your return. Move into it for a while before going on your trip.

 

[jagmanx]

The issue with flats as I see it are
1 leasehold
2 management fees
I agree with @inh a smaller house (freehold) is better. Yes evicting tenants is impossible today (virus)..but with short term lets (1 or 2 years) should be OK. We had to evict 1 tenant due to non-payment. With eviction the LA are legally bound to re-house

 

[John H]

Because of the 90 day rule, which has been mentioned by others above, you will either have to spend a large part of the winter in the UK (or Ireland or some other equally cold part of non-Schengen Europe) or take the Morocco option that others have mentioned. The latter creates health insurance problems, because most companies either will not let you spend more than 3 months at a time out of the UK or charge a very high premium to do so. If you take the Morocco option, you need to research the health insurance angle very carefully - it could leave a hefty dent in your budget. The same could well be true of vehicle insurance, so check with your insurer.

One further point about the Morocco option - don't stretch the time limits to the maximum. If you spend 90 days in the Schengen zone and then go to Morocco for 90 days (the maximum you are allowed there without a visa) then the times are critical. Miss your ferry by a day and the authorities could get very rigid about it - especially if it is the Moroccan authorities. 91 days in Morocco could lead to a major fine and confiscation of your vehicle. I would advise that you spend, for example, two and a half months in the Schengen zone, then just under 3 months in Morocco - this gives you flexibility at both ends.

If you decide to spend part or all of the winter in the UK, then bear in mind that a lot of campsites will be closed. Also, basic things like laundry and getting your towels dry can be a pain. In a house, drying a towel after a shower is no problem but in a motorhome, where damp is the bane of many lives, a wet towel can be a major problem. Not insurmountable but you have to think of the little things that didn't concern you before.

We have been "most-timing" since 2002. We have a house but my sister lives in it full time and we spend no more than a month a year in it (although that may well change if we aren't allowed to travel for some time because of Covid 19). Up to now we have had the freedom to travel around Europe at will but it is going to need a lot more careful planning in the future because of leaving the EU. However, we do hope to continue. It is a great life and whatever you decide, I wish you luck in your new life.

 

[Canalsman]

This web page helps with the 90 day rule:

Schengen Calculator - Calculate Your Legal Short-Stay in Europe

Schengen Calculator for Visa-Free visitors and holders of multiple entry visas valid for six months and with 90 days of permitted duration of stay.

www.schengenvisainfo.com

The calculator allows you to enter a series of dates and calculated the days spent in Schengen.

Here's a simple example with three 90 day visits:

 

[in h]

I'm not clear about what counts as in and what counts as out. For example, Ireland has a special rule for GB citizens, so they can stay there as long as they choose, but does Ireland count as "out" for resetting the 90 day limit?

 

[Canalsman]

Ireland is not in Schengen, so yes it does.