Send money from United Kingdom to Philippines

The United Kingdom has strict regulations, with authorities like the FCA (Financial Conduct Authority) and HMRC (HM Revenue and Customs) monitoring the financial markets. Many providers comply with relevant regulations to offer international transactions from the UK to the Philippines. You can choose from direct bank transfers, wire transactions, digital wallets, and specialized money transfer providers.

Money transfer providers are by far the best option because they are usually faster, cheaper, and easier to use than the alternatives. These are primarily online-based companies that require completing a simple form to send money abroad. Depending on the parameters chosen, the delivery could be instant. That's hard to compare with wire transfers that take days. And direct bank transactions using the SWIFT system also add high fees, while money transfer providers are fair and keep their charges as low as possible.

The details vary on the method selected, but prepare the following to avoid any surprises:

• Your ID: It's necessary to upload it to a provider to verify your identity or submit it when sending money from an offline branch. It should contain a photo - you can use a driving license or passport

• Recipient and delivery information: Discuss the best delivery method with the receiver and ask for their exact name and address. They must match the ones listed in the document the recipient plans to use to collect the money

• Payment method: The common options include bank transfers or deposits to a money transfer provider or using debit or credit cards. Don't forget you need sufficient funds to cover the fees involved

• Additional info: For large transfers, you might need to prove how you got the money (salary statement or employer contract, property sale document, or other relevant items)

If your transaction is personal and you are sending money to a family member or friend, you won't have to pay any taxes. If you decide to reverse the route and send money to the United Kingdom, check out our guide on money transfers and taxes for more information.

Things are different if you are buying a property or another large asset. You might need to report that acquisition or pay relevant taxes in the UK or the destination country. The same is true if you are sending payments to a remote worker doing a job for you.

Here are the usual options to choose from for personal transactions:

• Bank deposits: Receiving money to a bank account doesn't require your involvement. You'll get the funds, and you can choose to collect them now or at any later date. Unfortunately, a significant portion of adult Filipinos doesn't have a bank account, making this option potentially not the best

• Cash pickups: Cash pickups are more common and easier for most users. Western Union and MoneyGram have hundreds of branches across the Philippines, including independent agents, post offices, supermarkets, and fuel stations. You need to collect the money at the branch, which can be risky for large transfers

• Mobile deposits: Some providers partner with the GCash network to secure this option. Monthly transaction limits are fairly high, but make sure you validate your account first

• Cash delivery: This involves receiving money at your home address. It's convenient for major cities, but it could take longer for rural areas

You can learn more about these methods in our guide on how to send money to the Philippines.

You can't just go and collect the money sent to you. It's necessary to provide certain documents, such as:

• Your ID: Use a Filipino ID, passport, or driver's license, but make sure it's not beyond its expiration date

• Transaction info: Some platforms might require a reference number or code that the sender should deliver. Some will also require the sender's name and the amount you expect to receive

• Collection form: MoneyGram has a form that requires entering certain details. Most providers will require your signature to confirm they've handed you the money

According to taxation in the Philippines, you won't have to pay anything if your annual revenue is up to PHP 250,000. From there, the tax rate starts at 15% and increases to 35% for larger sums. It's important that the personal income tax is only applicable if you receive compensation for a job you've done for someone abroad.

The Central Bank of the Philippines has a special form to complete if you receive over USD 10,000 or PHP 50,000. It's a form where the facility authorizes the transaction.

If you want to send money abroad using a credit card, you can use a money transfer provider to pay for your transfer to the Philippines.

A benefit to using credit cards is that you can "borrow" funds that go beyond your actual balance to send money from the UK to the Philippines. The transactions are fast, and owning a credit card is extremely secure in the United Kingdom. The financial services compensation scheme protects this payment method, raising the overall safety of using credit cards to the maximum level. Some providers will even reward you for using this option, whether by discounts for future transactions or cashback deals.

But credit cards are far from perfect, especially price-wise. They are more expensive to deposit to the provider than debit cards and bank transfers, and there are high currency conversion and cash advance fees. Not to mention the risk of paying interest on your debt. The credit score is another thing to consider, especially if you plan a major transaction like buying a house. It's imperative to keep your rating as high as possible, and using a credit card will likely affect it.

You can also send money online to the Philippines using your debit card. But before making a payment, make sure you understand all the processing fees in place.

Debit cards might seem similar to credit cards, especially since many same issuers are behind both services (Visa, MasterCard, American Express). But the difference is that you can only use the money in the account balance with a debit card. There aren't cash advance charges, but you'll still pay conversion and transaction fees.

Instant transactions are another benefit offered by debit cards. Speed is a category where these outperform bank transfers, but the price isn't. Ultimately, if you are in a rush, debit cards might be more convenient, since most money transfer providers support them.

Bank transfers are the most common ways of sending money Philippines as they are secure, reliable, and convenient. You can use a money transfer provider to send money using a bank transfer at a great rate as long as you’re happy for your transfer to take a little longer to process.

It's better to use bank transfers via specialized money transfer providers. These companies don't use the SWIFT system, allowing them to keep the fees low. The usual processing time is within 24 hours. Even if it takes longer, you could still benefit from saving some money compared to card deposits.

PayPal is among the digital wallets available in the Philippines, so you can consider using it when sending money from the UK to this country. The company is famous for fast transfers, but its fees are harsh. They charge up to 5% per transaction, and there are conversion rates, too. Some charges might apply to the recipient, so make sure to double-check to understand how much they will receive.

Digital wallets offer instant transfers, but they aren't the smartest choice if you need a cheap provider. Please note that there are crypto wallets, too. However, we strongly advise against using digital currencies since the market is highly unregulated.