Essentials

This kind of paperwork isn't terribly exciting, but it suddenly gets a bit less dull when you figure out how much money you could save. In this section, we cover tax, visas, insurance and work schemes (pensions, health plans etc).

Tax

Unless you leave your job at the end of the tax year (April 5), you will probably be able to get a rebate. Get Form P50 from your tax office or this page of the HM Customs & Revenue website. Use R38(SA) if you do self-assessment tax returns.

Don't forget council tax and road tax too. For council tax, you can usually just telephone the council to tell them you're moving out. For road tax, get Form V14 from the DVLA (www.dvla.gov.uk) or the Post Office. Use the money owed sheet to keep track of your tax refunds (opens in new window).

If you're not earning money (more than £4,895 in 2005/6) during your career break, tell your bank or building society. They will give you a form to fill in, which means you won't have to pay tax on any interest your money might earn.

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Visas

It's usually fairly easy to get a tourist visa, and there are a lot of countries which don't require British people to get a visa. Things to remember:

• Visas are usually valid for a fixed period from the day you get them, not the day you arrive in the country. Getting your visa from a neighbouring country, instead of in the UK , means you won't have to wait months to use it.
• Visa prices can vary according to where you apply (at home or abroad).
• In some countries, you can get a visa on arrival. This can depend on whether you enter via the airport, or overland – so check before you get there.
• Some countries (Vietnam, for example) change their entry and visa requirements frequently. Check with the Foreign & Commonwealth Office (www.fco.gov.uk) while you're on the road.
• If you've got heaps to get, or you're not sure what to do, consider using a visa agency. They do charge, but then it saves you a lot of hassle. They can also sometimes get your visa at very short notice.

If you're working abroad during your career break, you have to get a working visa (unless you're in the EU). Australia and New Zealand offer a working holiday visa, only available to the under-30s. This allows you to work for up to a year there, for no more than 3 months in any one job. Get yours here.

For any other kind of work visa, the people organising your placement, or the company you're working for, will usually be able to organise it for you. Don't think about working illegally – you'll get deported.

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Insurance

You might be able to live with someone nicking your £10 sunglasses, but you still need insurance in case you get really ill, or have an accident. Unlikely, yes, but if the worst happens, you will probably want access to the best medical care, and to be flown home if necessary. Search around for a few quotes before making a decision, and ask other people who they've used (especially if they've had to make a claim). Some questions you might want to ask:

• Does it include repatriation for medical attention?
• Is there an optional excess? (As with car insurance, sometimes you can choose to lower your premium by paying the first bit of the claim).
• Do you pay for medical care upfront, or do I have to pay and then claim it back? (If you're visiting the USA , make sure the insurance people pay upfront).
• What sports and activities are included or excluded?
• Can I extend the policy if I stay away a bit longer, or must I buy a new one? (The first is usually cheaper.)

Compare travel insurance policies on this comprehensive site.

Important:

The Foreign and Commonwealth Office has a list of countries to which it advises against travelling. If you go to one of these places, usually your insurance won't cover you. Visit www.fco.gov.uk to check – and check frequently whilst you're away, or sign up to their email alerts.

Work schemes

If you have a work pension, you'll need to decide what to do with it! Your options:

• If you're on a sabbatical, you can either keep paying into your pension or take a break. It depends on your personal circumstances and the pension's conditions. If your sabbatical is unpaid, you might want to save money by not paying into it until you're back at work. Talk to your personnel manager.
• If you leave your job and have a company pension, you won't normally be able to continue paying into it when you leave. When you get a new job, you should usually be able to transfer your pension to your new company. Write to the pension managers (at both old and new companies) to tell them what you're doing.
• Alternatively, if you leave your job, you can just leave your pension as it is and not transfer it. The terms of your pension might specify this – check with your company's personnel department.

You might also belong to other employment schemes, such as private health insurance. Talk to your personnel manager about whether or not you can keep the policy. Usually you can keep your scheme, but you'll have to pay into it yourself! You can't usually take a payment holiday from things like private health insurance.

If you're not going out of the country, you might consider keeping such insurance policies if you are doing another job, particularly if you have dependents who are also covered.

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