Hello -
My company has asked me to consider moving to the UK for a minimum of one year and a maximum of 5 years. I am trying to determine what a "good" package would be. Good meaning, making me no better or worse off than I am now.
I currently live in Springfield, IL with my wife (no kids) and make a salary of $52,000 (my wife approx. $35,000). My company will pay for a flat, all utilities, and all transportation in London. They will also pay for my relocation to London and for my wife to find a job and relocate with me as well as help with my taxes. Finally, they will keep up my insurance, pension, and social security in the US as well as provide health insurance in London. We will have a 1 week paid trip in order to find housing before we move.
I currently have a house in Springfield that costs approx. $1,200 per month including mortgage, property taxes, insurance, and utilities (water, electric, garbage, phone, cable). I'd say I probably spend about $100-150 per month on my car (insurance, gas, maintenance). Therefore, only taking my salary into consideration - I have approx $52,000 less $16,000 in expenses for disposable income of $36,000 for income taxes, insurance, food, clothing, misc expenses, and savings. I will most likely sell my current home and store my cars with relatives. Therefore I won't have these expenses while I am gone.
This is what I figure my company will work off of ($36,000) since they are providing housing and transportation. If my company continues to pay me my US Dollar Salary, I will have approx 27,000 BP (52,000/1.92US/BP). Here's what I'm thinking would be an OK offer:
Housing (incl utilities): 1,400 BP per month (16,800 BP per year)
Transportation: 100 BP per month (1,200 BP per year)
Salary: 2,250 BP per month (27,000 BP per year)
COLA (50%): 1,125 BP per month (13,500 BP per year)
This gives me approx 58,500 BP per year verses my US Salary of $52,000. I beleive someone in my position in the UK makes approx. 43-47K BP per year. I may be high on my number, but I'm thinking this would be fair for me to move from the US to UK.
Since it is my wife and I and our Cat, I'm assuming a 1 bed flat would be sufficient. I would like to live a maximum of 30-45 minutes from the financial district. Transporation would be an Oyster Card for the tube and bus system. Since my "disposable" income in the US is $36,000, I'm assuming the company will probably give me approx. 40,000 BP. From my uderstanding, it is the housing and transporation that have the biggest impact on cost of living. Groceries, clothing, etc. should be around the same or maybe a little more expensive. I'm guessing that I'll have to pay UK tax but will get some sort of credit in the US so I won't have to pay double taxes? I currently pay 15% US tax and 3% state tax. I beleive someone told me tax in the UK is 17.5% - so my taxes should be about the same if I get a credit in the US. My company will help with all the preparation of returns.
Am I "way off" here? I'm just trying to be as prepared as possible when they make me an offer - whether it is comparable or not.
Any help or considerations would be great! Thanks!
England
Living in UK Guide
UK Forum
Contribute
Best Places to Live in UK
Healthcare in UK
Pros & Cons of Living in UK
