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US to UK help- compensation package

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lovestravel
4/2/2012 11:33 EST

We are both US citizens & never lived outside the US. My husband's company is putting together a compensation package for him to relocate to the london area. I know they are going to assign a company to help us relocate once the package is accepted but other than looking up the cost of housing we don't even know where to start in determining if the offer is worth taking. We will obviously need housing expense but also for 1 car due to the remote location of the office as well as continuing US based expenses for our college aged children staying in the states. Can anyone point us in the right direction on what to ask for or expect on living expenses and/or salary?

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gah26

From: United Kingdom
4/4/2012 06:53 EST

Unfortunately, expat packages are not nearly as generous or as comprehensive as they used to be. But, it never hurts to ask for something because they can only say no.

You don't say where you live now or where exactly you're moving to (London itself is about 659 square miles so "London area" covers a lot of ground), but you should generally expect a cost of living increase. However, housing expense isn't a given especially if you receive a COL adjustment. Your taxes will become way more complicated so you should ask for tax equalization and tax preparation assistance. On a Tier 2 visa you will be entitled to use the services of the NHS but you may want to ask for private health insurance. It's reasonable to ask for a minimum of 1 trip home each year as a couple. If your husband needs a car for work, that's certainly reasonable and car insurance should be included as I believe it would be quite high for a driver with no UK experience.

Other things to consider:

Relocation and repatriation expenses: whether it's to move all your worldly belongings to the UK or a portion.

Temporary housing for a period of time while you look a permanent place to live.

Monthly Expenses:

Landline and internet: £45/mo
Mobile phones for 2: £75/mo
Electric: £50/mo
Cable TV: £45/mo
Council Tax - will vary considerably depending on where you live £100-£300/mo
Gas - can't help as ours is included in a service charge
Car Insurance - can't help
Renter's/content's insurance - variable

To check grocery expenses, here is a list of grocery stores. They all have on-line shopping:

Waitrose high end
Marks and Spencer
ASDA
Tesco
Sainsbury's
Morrison's
The Cooperative

Drug store:

Boots

I don't know exactly what you mean by expenses for your kids going to college. It is a personal expense like credit card debt. I think you can only expect a COL increase which let's you keep up your continuing US based expenses as well as covers your UK living expenses.

The bottom line is, that you should never take an offer which will make you worse off financially.

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lovestravel
5/2/2012 18:07 EST

Thanks for the information. Once we started delving into the intricacies of setting up a budget it quickly became overwhelming. There are so many details- housing, taxes, car expenses, moving expenses, etc, etc, etc.

Finding housing costs have been pretty easy but then you add in trying to figure out what the other housing fees will be such as taxes.

We will have 2 college aged kids staying in the states for which we support (housing, tuition, food, cars, insurance, phones, internet, books, health insurance, utility bills). These expenses will stay the same after we move. They may or may not be finished with school while we are overseas. We have been trying to put a total monthly amount we spend on this to make sure we can still support them & I am afraid to let my husband know the amount. :)

Anyone know any sites where we can get some estimates on leasing a car for a 2 year or longer period? Do we need to get local driver's licenses? What other yearly fees are associated with having a car?

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gah26

From: United Kingdom
5/4/2012 06:11 EST

The only tax associated with housing that you will have to pay is council tax which covers things like rubbish pick up and other local services. However, as I said it will depend on which borough you live in.

Living in London, we don't need a car. I would suggest Googling car leasing. You can drive on your US license for 1 year after which time you will have to obtain a UK license which requires both a theory and a driving test. After 6 months in the UK you can apply for a learner's/temporary license and during this time you should get yourself ready to take the test. Most people take lessons. You don't have to give up your US driver's license. Aside from insurance which will probably be quite expensive, there is something called an MOT which I think makes sure your car is street ready:

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/Mot/DG_4022109

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phillyrutt
5/31/2012 07:25 EST

Hi!

I saw your message about a compensation package - you should definitely telephone a relocation company who can help you through areas and in London especially different areas cost different amounts - as does travel costs!

try calling London Relocation - they are really friendly and will give you advice even if you dont end up using them, they have a toll free number too so its free to call!

i think the number is +1 877 778 3487 but check their website!

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