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Digital

6 July 2023

6 min read

Letter from a digital nomad

The real gift of the digital tools we now have access to is to make the world both bigger and smaller at the same time, writes Lianne Howard-Dace.

Lianne Howard-Dace

Lianne Howard-Dace is a writer and trainer, with a background in church and community fundraising.

Photo by Chenspec on Pixabay.

The air in the carriage is still and stifling. I’m sat near the border of Romania and Bulgaria, waiting for the Poliția to return my passport, and I tot up that I’ve spent over 100 hours on trains in the last two months. But, despite my large suitcase and brightly coloured bum-bag, I’m not strictly on holiday. I am – for now at least – a digital nomad.

Even before Covid-19 hit, the number of people combining work and travel in this way was growing. The increasing openness to remote working which the pandemic catalysed means this has only continued to explode.

Some countries, like Portugal and Italy, are even trying to incentivise people to work there to aid their economies, or repopulate declining areas.

Exactly what constitutes being a digital nomad is a little fluid, but essentially it is working remotely, in different places, for a prolonged period of time. You could certainly be a digital nomad moving around your home country, but there is a strong trend of people exploring places where their salary goes further.

If you’re stuck renting and you work remotely anyway, why not add some adventure to the mix?

It’s not hard to see why nearly half the people pursuing this lifestyle are in their 30s. Many of us have not been able to “settle down” in the ways we anticipated growing up. If you’re stuck renting and you work remotely anyway, why not add some adventure to the mix?

Often, this means rocking up to a new city for a month or two, maybe as long as a year. Having bought a three-month interrail pass on a bit of a whim, I’ve taken a slightly different approach. Having already established myself in a new city a couple of years ago, I wasn’t looking to do that over again. But, working on the road is allowing me to scratch the wanderlust itch without eating into my savings.

Making the most of my all-inclusive travel, I’m spending the week in one city and moving on to another for the weekend. I’ve been blessed to experience some of the best art, culture and food that Europe has to offer. Galleries in Dresden, a piano trio in Venice, and pierogies in Warsaw have been just a few of the highlights.

I have also had to hold onto my job, of course, and getting used to balancing work and sightseeing was a steep learning curve for the first couple of weeks. My employer has not only allowed, but encouraged, me to make the most of their flexible working policy. This has made keeping the FOMO at bay easier, as I can always take a break to visit a gallery or museum and work into the evening if needed. Taking a late dinner is so much more continental anyway…

The “digital” bit of being a digital nomad isn’t confined to remote working either. Having the timetable of every train route in Europe, a map of the world and a translator at my fingertips offers more than just convenience. As a woman travelling alone, I feel much safer knowing that the possibility of getting lost and not being able to communicate with anyone is reduced.

Just as much as the breath-taking scenery and legendary landmarks, it’s been these little moments... which have really made this trip.

Showing an Austrian man in the laundrette how the camera feature on Google Translate turned the washing machine instructions into English in front of our eyes was a really fun moment. In fact, just as much as the breath-taking scenery and legendary landmarks, it’s been these little moments (you might call them casual magic) which have really made this trip. Like noticing that I’m one of five women on the train to Oslo who are knitting or crocheting, or watching a man in Bratislava cycle across a park with a giant bundle of modelling balloons strapped to his back.

Some people were surprised I was undertaking such a long trip alone, but it suits me. Compared to the 2021 lockdown - which happened to be my first experience of living alone - this is a doddle.

I’ve also been helped by the fact that a few friends and family have taken my trip as an excuse for a break, so I’ll have had company for four of the thirteen weeks I’m away. As a bonus, I randomly bumped into a couple I know from London whilst walking over a bridge in Budapest and joined them for an impromptu beer.

I’ve become very content dining alone. It’s nice to feel comfortable in your own skin like that, and it’s helped me get a lot more reading done as well! There have been other unexpected benefits of moving around so much. Oddly, for someone with hoarding tendencies, I take pride in being a light packer. I’ve really enjoyed the simplicity of living with a smaller amount of stuff and finally understand the power of “a place for everything and everything in its place”.

In my “normal” life I am terrible for procrastinating with life admin and leaving things until they become stressful. On the road I can’t do that. I have to book the next train or place to stay. I have to tidy up because I need to be out of my room. I’ve learned that I thrive with this blend of structure and change, though I’m yet to figure out how on earth to translate that when I get back.

I’ve also tried to keep a stricter morning routine than usual. I’ve started most days with a few pages of journaling and the daily reflection on the Pray As You Go app. It’s working well to have that consistent touchpoint, whether I’m waking up in a quirky studio apartment or on a busy sleeper train.

I’ve visited a lot of cathedrals and churches on this trip, as these are amongst the significant landmarks in many European cities. Sometimes this is a purely touristic experience; if a church is teeming with people chatting and taking selfies I might take in the artistry of the building, but find it harder to connect on a spiritual level. But many times an atmosphere of reverence is maintained. There will be a quiet sense of shared wonder. I’ll find myself slipping into a pew, meditating on the imagery around me, having a little chat with God and generally enjoying being out of the hustle and bustle of the city for a short while.

On Sundays, I’ve sought out an English-speaking church where possible. Maintaining some of the rhythms and rituals from my everyday life helps me to feel grounded. If I couldn’t listen to podcasts, or write, or crochet I suspect I would feel more disoriented whilst moving about so much. And if I didn’t go to church for the whole three months, I think I would feel out of sorts. Untethered, perhaps. In the twelve years or so I’ve been a Christian, I’ve grown used to that weekly gathering punctuating my week, giving me space to connect to God and others and allowing me time to reflect.

Joining a service has also given me a different window into some of the cities I’ve visited. I loved hearing that the church in Prague were having their annual book sale, singing with a visiting choir in Berlin and learning about the grant the church in Bucharest have received to support refugees in their city.

I am part of a worldwide movement... I can learn from others and find kinship wherever I am.

The American student handing me the order of service, the Indian priest leading the service, the Australian retiree reading the bible passage for the day; they all remind me that I am part of a worldwide movement. That I can learn from others and find kinship wherever I am. And, when it hasn’t worked logistically to attend a local service, I’ve watched one on YouTube from my church back in Brighton. I’ve been able to both find a sense of connection in a new place and stay connected to my home community. Maybe that’s the real gift of the digital tools we now have access to; they make the world both bigger and smaller at the same time.

Now, I’ve got my passport back and in six hours or so I will be in Sofia, something like city 20 of 27. In a few days I’ll take an overnight train to my furthest destination, Istanbul. I’ll be right on the precipice of where East meets West, having taken in the Alps, the Baltic Sea and the banks of the Danube along the way. Not a bad way to make a living.

Explainer

Comment

Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.