Earth ‘losing fight against global warming’

The Growing Trend of Career Break Travels: Financial Implications and Money-saving Tips

The murder of the young British backpacker Katherine Horton on a Thai resort has reminded people of the dangers of heading off on a gap year. But although the traditional form has been for students such as Horton to take off around the world, there is another growing segment of travellers. Increasingly, people in their late 20s and early 30s are taking a career break or gap between jobs to travel the world. Unlike students or recent graduates, these voyagers are likely to have financial commitments in the UK, and income and savings rather than daunting debts.

The Emphasis on Personal Happiness and the Decision to Travel

A report by Kate Fox at the Social Issues Research Centre, last year, examined the higher emphasis that modern young adults place on personal happiness as they shift between twice as many jobs as their parents’ generation. She noted: “When in doubt, which is often, they ‘go travelling’, whether to escape the pressures of perfection-seeking or to search for enlightenment or fulfilment or ‘something’. Fiona Middlemiss, a technical services manager at Alan Steel Asset Management in Linlithgow said that increasingly people in this type of situation are consulting advisors about their finances.

The Financial Implications of Taking a Gap Year

The first question to consider is income tax. If you thought you could avoid the long arm of Mr. Taxman, sadly, it is difficult to get away. “It is governed by the balance of your economic activity, where your bank accounts are based, and whether most of your activity is going to stay in the UK,” Middlemiss explains. For example, if your home stays in the UK you are likely to remain liable in Britain. Similarly, if you have a portable job – a translator, journalist, or consultant – and are paid mainly by companies within the UK, then this is subject to taxation.

Taking a Gap Year from Tax

One consideration might be whether you can take a gap year from tax. In this case, you need to be out of the UK for more than one tax year – from the specific dates of April 6 to April 5 – and it helps to have a short-term employment contract that specifies that you are providing services outside the UK. It is easy enough to set up an offshore bank account, Middlemiss says, as most of the major banks have branches in places such as the Channel islands. “Some offshore workers in the oil industry, for instance, are non-resident for tax purposes. But complications can arise. If a loved one becomes ill and a non-resident comes home to see them, all that careful planning dissolves.”

Financial Insights from a Former Career Break Traveler

For Pip MacLennan, a former public relations and sponsorship manager for a mobile phone company, registering as a non-UK resident in terms of tax relief was the most sensible option when she packed her bags for a 20-month trip around the world. Like many other “quarter-lifers”, she took some time out. Speaking from Goa, India, MacLennan explains: “I decided to travel the world after a recent separation from my husband, plus the stress of doing what felt like a 24/7 job, always on the end of a mobile phone. I had also never taken a gap year and felt the urge to travel before I settled down again.”

MacLennan had a reasonable amount saved after five years in her job, and had also sold her house as part of the divorce proceedings. This money was invested in two high-interest savings accounts that could not be accessed for six months and that would not be subject to interest since she was out of the country. It is necessary to fill in the Inland Revenue’s P85 form. She then moved money into an easy-access savings account with her bank, Barclays. MacLennan can log on to the internet to change money between accounts, and also use her Barclays Connect card in ATMs around the globe.

The Tax Implications of Renting Out Your Property

If you are away for more of the tax year than you are home and are renting out your property, you will be considered a “foreign landlord” and so a lending agency will be obliged to deduct the basic rate of tax from your rent. “It is tax, so it can be reclaimed if it at a later date you find you have paid too much,” she explains. “It would also be polite to let your lender know, and you should take out insurance that covers renting.”

Tax Liabilities in Other Countries

One thing to beware of is the period of time you spend in any one place – stay for 183 days, and you may well be liable for tax in that country, in addition to UK tax. Many countries (EU and former commonwealth) have tax accords with Britain, so you may be able to get tax credits at home if an employer there deducts tax. But this is not hard cash repayment, and it is important to keep payslips as a temporary worker may be untraceable on another social security system. If there’s money left over from your travel budget, it is worth taking out an ISA – and possibly paying any earnings into this.

The Impact of Global Warming: Hotel Industry's Response

Hotel Industry and Environmental Responsibility

With Earth facing an alarming challenge in the form of global warming, it becomes essential for all sectors to prioritize environmental responsibility. The hotel industry, as one of the largest contributors to carbon emissions, acknowledges its role in the battle against climate change.

Green Initiatives and Sustainable Practices

Hotels around the world are increasingly implementing green initiatives and sustainable practices to minimize their carbon footprint. From adopting energy-efficient systems and appliances to reducing water consumption through recycling programs and linen reuse options, hotels are taking steps toward a more sustainable future.

Renewable Energy Sources

Many hotels are also investing in renewable energy sources such as solar panels and wind turbines to generate clean electricity. These initiatives not only reduce carbon emissions but also help hotels save on energy costs in the long run.

Local Sourcing and Organic Menus

Furthermore, hotels are prioritizing local sourcing and organic menus to promote sustainable agriculture and reduce the environmental impact of food production and transportation. This trend not only supports local farmers but also provides guests with healthier and environmentally conscious dining options.

Educating Staff and Guests

Hotels are also taking the initiative to educate their staff and guests about the importance of environmental conservation. By promoting responsible practices such as recycling, water conservation, and reducing waste, hotels encourage a collective effort in preserving the planet.

Conclusion

As more individuals choose to take career breaks and engage in long-term travel, it becomes crucial to understand the financial implications and plan accordingly. Seeking professional advice regarding tax obligations and exploring opportunities for tax relief can help travelers navigate the complexities of financial management during their time abroad. Additionally, with the pressing issue of global warming, it is heartening to see the hotel industry adopting sustainable practices to minimize its environmental impact.