# Comp Package to Relocate to London



## scotts (Oct 19, 2010)

I'm sure these questions get asked here 1million times but in the current global economy i dont want to make a poor choice. Obviously there are lots of things to consider prior to accepting a relocation package - but strictly financially - will the below package allow me a decent quality of life? What are some areas to live in that are young and modern and fun without being super expensive?

I've been offered 70,000gbp Gross annually to move to london from California. In USD its a small pay increase but im not sure if the cost of living eats that increase. Can i live comfortably in london on this salary? I have to bring my spouse who will try and work on my visa... but for now that will be our only source of income. 

What types of things should i ask my employer to asssist with? Knowing that budgets are tight i dont want to appear greedy but also dont want to have to live in poverty...

How much should i budget to move the necessities?


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## Joppa (Sep 7, 2009)

scotts said:


> I'm sure these questions get asked here 1million times but in the current global economy i dont want to make a poor choice. Obviously there are lots of things to consider prior to accepting a relocation package - but strictly financially - will the below package allow me a decent quality of life? What are some areas to live in that are young and modern and fun without being super expensive?
> 
> I've been offered 70,000gbp Gross annually to move to london from California. In USD its a small pay increase but im not sure if the cost of living eats that increase. Can i live comfortably in london on this salary? I have to bring my spouse who will try and work on my visa... but for now that will be our only source of income.
> 
> ...


£70,000 gross will be around £47,610 net or just under £4,000 a month. That should be sufficient to live a reasonably comfortable but not luxurious life in London, living in a safe, pleasant but not exclusive area, in a small flat or a house in the suburbs and possibly running a modest car. You will probably spend up to half of your income in rent (£500 a week) and the bills will come to around £400 a month for utilities, phone, broadband, satellite or cable TV and insurance. Council tax will be around £100 a month. Commuting cost depends on how far you have to travel daily, but like most Londoners you will be commuting by public transport, which is very good. Your food bills may be around £1,000 a month including some meals out, so you'll be left with around £500 to pay for car running, holidays and clothes etc. If your wife can earn some money, even part-time, that will surely help.
Under UK tax law, up to £8,000 in relocation expenses are tax-free. You can ask for some help in finding somewhere suitable to live, and help with opening a bank account. Keep the amount of stuff you bring over to a minimum, as UK homes are typically much smaller and appliances may not be compatible (different voltage, standards, technology etc). Try to get a furnished or partly-furnished flat, so it comes with minimum necessities like a bed, sofa and armchairs, dining table and chairs as well as fully-fitted kitchen (this is pretty standard). Think about your tax position and get an expert advice on how to minimise your UK and US tax liabilities legally.


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## trishuk (Oct 20, 2010)

scotts said:


> I'm sure these questions get asked here 1million times but in the current global economy i dont want to make a poor choice. Obviously there are lots of things to consider prior to accepting a relocation package - but strictly financially - will the below package allow me a decent quality of life? What are some areas to live in that are young and modern and fun without being super expensive?
> 
> I've been offered 70,000gbp Gross annually to move to london from California. In USD its a small pay increase but im not sure if the cost of living eats that increase. Can i live comfortably in london on this salary? I have to bring my spouse who will try and work on my visa... but for now that will be our only source of income.
> 
> ...


My husband and I relocated to the UK 2 months ago. This my first overseas move. I would definitely suggest getting tax advice as part of your package. Benefits are treated differently here than we were used to in Australia and you do what you can to make things as tax effective as possible. However, we were lucky enough to have some relocation assistance. This was really helpful and made the process of finding an appartment in an area that we would like much easier. It is also definitely worthwhile organising your bank account before you arrive. Our bank is a smaller bank here, but they made the process really easy for us. Good luck with the decision!


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## Bevdeforges (Nov 16, 2007)

It could make a difference if you are relocating on a permanent or temporary basis. Is this a deal with your current employer? Or are you looking at a new job with a new employer?

If it's with your current employer, you need to determine if you'll be in London on the local payroll or as an "expat" (meaning that you will eventually move back to the US). 

In any event, on a "relocation" you should ask if the employer is going to pay for moving expenses - shipment of your furniture and other household goods, etc. And if it's a new job, you may want some protection just in case the job doesn't work out - payment of moving expenses back to the US should the job not work out within the first year or two.

Tax assistance is a good idea. For an inter-company move, they should provide tax preparation services for both your UK and US tax filings while you're overseas. If it's a permanent job on the local payroll, some sort of assistance for the first and maybe second year would be reasonable. The first year is the tricky one. The second year should be a "normal" tax year and after that, you can use the second year tax return as a model to file things on your own in both countries.
Cheers,
Bev


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## MR2Tony (Sep 16, 2010)

My company gave me slightly less than that to move over here and I find that on that salary I live fairly well. Be warned, EVERYTHING is more expensive here than in the U.S. Not just the rent, but the food, the drinks, the restaurants, the movies, the theater, the coffee, contact solution, soap, etc. etc. etc. 

I was told that when I moved but didn't quite grasp the concept. I also have several obligations back in the states, including my mortgage for my condo in Chicago, alimony to the ex and a loan on which I have a couple years left to pay. If you're pretty much debt-free, you can live very well on £70,000. If I didn't have my U.S. obligations, I'd be set and as I said I make slightly less than that. 

I found a nice, albeit small, one-bedroom here for £260 a month, so if you have twice that to spend on rent, you can get a REALLY nice place. Of course EVERYTHING is relative. 

Good luck!


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## Joppa (Sep 7, 2009)

MR2Tony said:


> I found a nice, albeit small, one-bedroom here for *£260 a month*, so if you have twice that to spend on rent, you can get a REALLY nice place.


£260 a *week*!


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