LF Advice: Moving To UK?

[iggyntangs]

CP Faithful,

Looking for some people to help me at least at the moment financially speaking make sense of what a potential move to the UK could be.

I'm not necessarily looking for free advice but specifically right now I'm in the early stages of obtaining an offer for employment in London and I'd like to weigh the financial scenarios specifically tax-wise for now.

I'm assuming tax could become a confusing thing especially depending on where I make my "tax home" and basically I'd like to know what I'd net in income if I were to take the UK position and live there vs. what I know the taxes are and what I net home if I stay in Calgary with my current position.

Anyway, anyone that could help me out with this or point me to the direction of someone I can talk to who may specialize in this sort of thing that would be much appreciated...it will definitely be a HUGE factor in my decision to accept or reject an offer.

Thanks in advance!

[Slava]

I don't have a ton to add that is useful and just want to say that I'm jealous.

[Fuzz]

Just make sure you work cost of living into your calculations. Depending on where you are, it can eat up any extra earnings.

[iggyntangs]

Originally Posted by Fuzz

Just make sure you work cost of living into your calculations. Depending on where you are, it can eat up any extra earnings.

Absolutely I mean I'll definitely be trying to look into COLA calculations to compare London to Calgary as well, for now I'd like to work on a reasonable estimate of how big my "pie" is to start off with in London vs. Calgary and then see how that pie slices based off of differences between living here and there.

[Fuzz]

Ya, sorry can't help much on that... When I was there I got most or all of my tax money back, but I think that was because I didn't make all that much as a bar tender/bike repair guy. I do know that most of my money disappeared really quickly there!

[BigNumbers]

Main question is length of contract and if you will be cutting ALL ties to canada. If the answer is no (wife, kids here, keeping a bank account or a gym membership, planning to come back to visit, etc, etc all play in).
If it's a shorter term (under 2-3) contract, or you're not closing every account and membership you have here, or you have family here, then I'd make the assumption that you will continue to pay CDN taxes... So then the question is simply to look up the UK taxes based on the income you're making... Whichever is higher, use that! Can't really be too much worse, but there may be UK WHT, etc you have to factor in that I know nothing about....

A quick consult with someone like Locke may help.

[marsplasticeraser]

I've lived in UK (London) twice since 2000, here are my comments for your calculations:

1. In doing taxes don't forget that VAT (20%) is on almost everything you buy. I recall marginal tax rates off of paycheques were similar to Canada, but VAT meant that lots of things cost a lot more, except food was cheaper, at least in 2010 it was.

2. Housing expenses cost a lot more for comparable quality. My first stint I lived in a shared house for $700 / month and saved a ton in CDN$. Second stint I rented a good (not great) 2 BR apartment which cost ~$5,000 / month. You pay for location. If I were to go back again I would pay for a good place in an area I want to live.

3. If you're in a major centre you won't want a car, as transit is great (but can be expensive) and parking horrendous.

Overall, I wouldn't move to UK and expect more money unless you change your lifestyle and live a more utilitarian existence. I'd move to the UK again in a heartbeat as it's a very nice place to live, well situated to explore Europe and has a good quality of life - at least by my definition (walkable/bikeable, pleasant weather in SE England, good food/drink, interesting people).

[iggyntangs]

Appreciate the advice thus far from everyone.

This opportunity would be for a permanent role and the company would be sponsoring me. The move is likely for a 2 year time frame (that's what I'm guessing in my own head experience wise).

I'd be bringing my wife but leaving behind a vehicle and one-two properties so I definitely have some ties in Canada.

I'm not looking to make an increase in pay, but when I said I want to factor in how much tax I'd be paying in total I want to make sure that the affordability is there to live off of appropriately what I'd be making in the UK.

So far, sounds like basically I end up paying whomever has the highest taxes (which I believe would be Canada) and then factor in COLA based off of being in the UK vs Canada?

[JD]

There are financial planners/accountants/lawyers etc in Calgary that specialize in this relocation stuff. I consulted one before I came to the UAE and I would say it's a must. You need to know what to do if you plan to avoid Canadian tax. You don't necessarily need to cancel your Canadian bank account as mentioned above but there are many other little things you MAY have to do to later demonstrate that you're not a Canadian resident.

I wouldn't necessarily recommend the guy I used but do get some professional advice and hire someone to do your departure tax return. Of course my situation is a bit simpler because there are no taxes in the UAE. For the UK, you will need to consult the agreement in place between the countries.

[GomerPile]

I second talking to someone professionally. We moved to Netherlands as expats a few years ago. We kept some things in as Canadian assets, the first year we used the company appointed accountants and they were a joke. Wouldn't answer any questions and I had to do so much on my own. If you are keeping some things in Canada and trying out the move, definitely find someone you like and trust as it can all get very complicated. Especially if you are moving with any sort of foreign specialty worker with a reduced tax - I don't know what the offer is or how the UK works. Just speaking from experience, also I want to have everything in line if the CRA comes marching in a few years as we plan on moving back here sometime soon.

[afc wimbledon]

Can't speak to the tax issue but should advise you to brush up on your drinking, you will drink a lot more there than here. Working lunch lunch means three pints and a packet of crisps at the pub then back to work. Trains have bars on them, no point in wasting good drinking time.
I'm always surprised when I go back and realize my mates spend much of their life slightly pissed.

[JD]

Originally Posted by afc wimbledon

a packet of crisps

You might want to bring a translation guide with you to help decode phrases like this into Canadian English.

Bag of chips.

[cheevers]

Originally Posted by iggyntangs

I'd be bringing my wife but leaving behind a vehicle and one-two properties so I definitely have some ties in Canada.

Just a note on this, I am not sure what your plan is in terms of living arrangements, but because you are a couple, if you want to live in any of the better areas you are looking at £1000-£1200/month for a flat share.