US citizen moving to the UK

[shi]

Hi Guys!

I hope you guys don't mind me jumping as well! Actually, I am in a sort of similar situation to Just Visiting. I would like to relocate to UK as well, but at the moment I'm also looking into AU as an option. Got a bit intimidated when I started to read all the locals were migrating out of UK because of the crazy high taxes.

I can relate to LadyLily43. I am living in Los Angeles, CA right now and have been here for 3 years. I was living in San Francisco before. I'm living in a small 1 bedroom flat in the downtown of LA and paying about $1700 a month for it! And this is not including the utilities and all the misc fees. So when my hubby did a rough calculation in his head, being in London might not be that much more expensive than it is for us to be here in LA.

Would any of you recommend relocating to London or any city in UK?

Thanks!

Shi

[Bevdeforges]

The trick with relocating to London, or anywhere in the UK, or anywhere in the world, for that matter, is qualifying for a visa to live and work there. It can be extremely difficult to get a working visa for the UK unless you have some special qualification, experience or training that is in short supply in the work force there. And, unless things have changed in the years since I was living in the UK, you still pretty much need to find a job first and then apply for a visa (or let your employer handle the paperwork). Long-distance job-hunting is tricky.

Australia, on the other hand, has a point system whereby you can qualify based on job skills and other criteria and then start looking for work once you get there. (Canada has a similar system.) OK, you need savings to tide you over until your job hunt pays off, but at least you're on site and available to take any and all interviews.

In any event, it would be a good idea to make at least one or two exploratory runs to any country you're considering immigrating to - just to check out general conditions, the job market, expenses, weather, housing, etc. etc. I'm constantly amazed by the number of folks who are planning to pack up and move the whole family half way around the world to a place they've never been to before.
Cheers,
Bev

[LadyLily43]

And see now that is why I have faith that if we do move; Mark (my husband) will have no problems finding a job...He is an IT specialist and people in those fields always seem to be needed...I DO wholeheartily agree with Bev though; unless you are already living in the country and are simply moving to another city then it is most definitely wisest to try and visit the country you are considering moving to BEFORE you try and accept a position there and get a VISA and all...this way you are more certain not to be stuck doing something you do not like...

[MichelleAlison]

Originally Posted by LadyLily43

I can actually answer this one more specifically; that is unless there has been a change or two within the Picadilly Circus area since I've been there back in 1985...if not; then if you actually live in London; even in what we Americans might call a subburb of London; then as long as you can get to Picadilly Circus; you should be able to find the American Express office there...you can wire money home from there, and any family you might be wiring to in the US would only need to have either an American Express office in town, or an agent of American Express...for example if your family has a K-Mart in town; I think they do American Express transfers, and I think the fee is still somewhere around $12.50 though don't quote me on that part...You just go up to the counter; tell them you want to wire money home; tell them how much; they will do the conversion rate plus tack the fee on and then tell you how much the total is...

I do have one or two more questions to ask though if no one minds:

1)The TV Tax; is that £100 total or per tv? I ask because right now we have three TV's; so; though we are planning to either sell or give away most of our belongings to make the move less expensive when we are ready to move...once there it will give us a greater idea of how many TV's we can afford for our residence there...

2) We were actually thinking wherever he might work; that we might live in a smaller village nearby so that even though HE might need a car to get to and from work; *though we were also counting the train as part of the public transit*; I would be primarily relying on either a bicycle for my son and I in the village; or our own feet, but just in case we were to live somewhere in London; how easy is it to purchase and use the Oyster card, and how much does it cost? We were thinking about even getting one for each of us while we would be visiting in November as well...

3) The VAT...what types of things do they put the VAT on?

Thanks Again
T. Vandal

Firstly (thank g-d) the TV licence is per household and it doesn't matter how many tv's you own (we had six before we left). The cost is 139.50 (pounds) per year and you can check it out here TVL - Welcome to TV Licensing There is no way you can avoid this tax - every household is on their radar system - no joke.

One major tax that hasn't come up on this thread is the dreaded council tax. This varies from area to area. You will need to let us know where you plan to live before we can give you the figures, but this can be anything from 1,000 to 2,500 pounds a year. This is compulsory and failure to pay it, can end in a prison sentence - this is more serious than robbing someone - honestly.

The London Underground has it's own website which you can check out here
Tube | Transport for London - not sure if there are any prices.

Commuting from outside London is very expensive - once you decide where to move, you can check out the releveant train line for costs.

Don't forget that all the British go to America shopping and find it very very cheap, from clothes, accommodation and food both in supermarkets and restaurants.

Petrol in the UK has just hit $US10 a gallon compared to US$3.50 in America. Car road tax varies from car to car, but can be anything from under 100 pounds to 300 pounds a year. Car insurance, well that is huge, especially as you won't have any no claim bonuses, which means you are starting from scratch.

Will post more information soon.

Regards

Michelle

[LadyLily43]

Ok so...so far we are talking a tax on TV's, a road tax, the VAT and a council tax...and of course though it is a "seperate issue"; there is the NI tax...are there any other taxes?

I still say after comparing prices between Sainsbury's, Asda, Asda's parent company Walmart here in the US; (actually going into a Walmart I mean); and our home town grocery store plus grocery stores online; that the costs mostly balance out...

Restaurants on the other hand; like renting; depend on where you live; here in this country I mean; cannot even claim to know about Britain...For example; in the small town I live in; it is possible for three people to eat breakfast, lunch or dinner depending on what you are in the mood for; for under $25/£12.50, but if you were to go to larger cities; you would be lucky to eat for $40/£20 per person...Clothing and accomodations like over there; depend on where you go to shop as well...
For example...

You have what seems to be a very nice bed and breakfast in Ealing that we will be staying at called At Home, and we are getting an excellent rate for two weeks of staying...In fact we've already paid in full because of the inexpensive rate... We needed both a double for ourselves and a single for our son; and as you might be able to see should you check out their web site; you can get both for a grand total of £110/$220 per night...but I will grant you that the other more well known hotels there might be a bit more expensive especially the closer to areas like Picadilly Circus you get...However we too have that problem but a bit in reverse...as some from your country may have said...some of our regular hotels HERE can be a bit cheaper, BUT our B&B's you would be lucky to get a single room for under $225/£112.50 per night in some of our quieter cities...BIGGER cities like Chicago or Boston won't have a decent B&B for under $325-$500; (£162.50-£250) per night...and forget hotels in downtown areas of cities like Chicago, Boston, NY City and Los Angeles...

Clothing: If you do most of your shopping in a store like Walmart then you can most definitely get a decent pair of jeans at a normal minimum price of $10/£5 a pair, and it is possible to get inexpensive shoes there too though the quality might not last long if you consider what some do to their own shoes...but we have department stores and boutiques that can be just as expensive as even Harrod's costing as much as $300/£150 or more for a single pair of "cheap" sneakers...

When it comes to the taxes; here in this country we have businesses like H&R Block where the sole goal of the people working there is to help people like me who are affraid or too busy to work on our own taxes...for a fee they do your taxes for you while you are in their office...they also e-file them for you as well so you can get your tax return (recovery) check; if you are due one; direct deposited into your checking account. If you are not due one, but instead owe; they will provide you with the means to pay... Are there businesses like that in the UK, or is it just a matter of hiring an accountant?

[Bevdeforges]

Originally Posted by LadyLily43

Ok so...so far we are talking a tax on TV's, a road tax, the VAT and a council tax...and of course though it is a "seperate issue"; there is the NI tax...are there any other taxes?...

When it comes to the taxes; here in this country we have businesses like H&R Block ... Are there businesses like that in the UK, or is it just a matter of hiring an accountant?

OK to answer a previous question you posed, VAT is on just about everything you buy. There are a few categories that have a lower rate (5% in the UK) and a very few things that are "zero rated" - mostly public utility-type services and insurance, I think. One "surprise" for many Americans is that VAT is charged on all incoming goods - so if you order stuff from the US, you'll most likely be hit with a VAT bill on the declared value of the shipment. (And this now applies also to downloaded software.) In fact, you often receive a VAT bill even on packages marked as "gifts." It's just how the tax works.

Obviously, there is the national income tax, in addition to your list. Plus the usual "sin taxes" on alcohol, cigarettes and other things that are bad for you. And much of that $10 a gallon for petrol is tax, too.

Someone currently living there may jump in here, but when I was living in the UK there were no "store front" tax preparers like back in the US. There are, of course, computer programs to help you prepare your tax declarations, but most governments now have a much wider array of services available online for taxes, including filing them yourself. No need to pay anyone to "e-file" for you. Except of course for your US taxes, which you will have to continue to file - though generally you only pay US tax on income from a US source, like interest on investments, or ultimately when you get social security or other retirement benefits. (You still declare your worldwide income to the IRS, no matter where you live in the world.)
Cheers,
Bev

[Bevdeforges]

LadyLily,
Since you seem to be doing a rather thorough study of prices and financial aspects of making the big move, let me mention one thing you may want to check up on before you go. Retirement funds and benefits.

While it is still possible to collect your US social security from overseas, there is also a "gotcha" in the form of the WEP (Windfall Elimination Program), which reduces your US SS benefits if you are eligible for any sort of overseas government backed pension. It hits many overseas Americans, though I'm told there may be some way around it with adequate planning.

It's also useful to know that, if you're exempting your overseas salary from US taxation, you won't be able to add any more money to your US IRAs, 401Ks or other retirement savings plans. (There are similar retirement savings plans available in the UK.) And there is always the issue of the exchange rate for the dollar, which can be a real problem for retirees abroad.

Retirement may seem a long ways off right now, but trust me, it sneaks up on you. In the end, you wind up cobbling together bits and pieces to try to arrive at a reasonable retirement income. It might be worthwhile to do a little planning before you go. (And maybe you can report back here on what you find.)
Cheers,
Bev

[LadyLily43]

Bev honestly; thank-you very much for pointing those out as well...both very valid points and things we might not have thought of...Mark and I only have about another 20-30 years before we retire...time that I agree could go by more quickly than we can realize...

About the H&R Block though...many people here prefer to pay someone to do their taxes for them because our tax laws can be so confusing that if we DON'T have someone else do them; not only could we miss out on some tax deductions that help reduce the amount taken from us; but sometimes we end up owing more than we might be able to afford at the time, and so paying H&R Block or another similar company to do our taxes can be a major relief; especially since they guarantee their work so strongly that they will go with you to the IRS should you be told you are being audited...

[MichelleAlison]

Originally Posted by LadyLily43

Ok so...so far we are talking a tax on TV's, a road tax, the VAT and a council tax...and of course though it is a "seperate issue"; there is the NI tax...are there any other taxes?

I still say after comparing prices between Sainsbury's, Asda, Asda's parent company Walmart here in the US; (actually going into a Walmart I mean); and our home town grocery store plus grocery stores online; that the costs mostly balance out...

Restaurants on the other hand; like renting; depend on where you live; here in this country I mean; cannot even claim to know about Britain...For example; in the small town I live in; it is possible for three people to eat breakfast, lunch or dinner depending on what you are in the mood for; for under $25/£12.50, but if you were to go to larger cities; you would be lucky to eat for $40/£20 per person...Clothing and accomodations like over there; depend on where you go to shop as well...
For example...

You have what seems to be a very nice bed and breakfast in Ealing that we will be staying at called At Home, and we are getting an excellent rate for two weeks of staying...In fact we've already paid in full because of the inexpensive rate... We needed both a double for ourselves and a single for our son; and as you might be able to see should you check out their web site; you can get both for a grand total of £110/$220 per night...but I will grant you that the other more well known hotels there might be a bit more expensive especially the closer to areas like Picadilly Circus you get...However we too have that problem but a bit in reverse...as some from your country may have said...some of our regular hotels HERE can be a bit cheaper, BUT our B&B's you would be lucky to get a single room for under $225/£112.50 per night in some of our quieter cities...BIGGER cities like Chicago or Boston won't have a decent B&B for under $325-$500; (£162.50-£250) per night...and forget hotels in downtown areas of cities like Chicago, Boston, NY City and Los Angeles...

Clothing: If you do most of your shopping in a store like Walmart then you can most definitely get a decent pair of jeans at a normal minimum price of $10/£5 a pair, and it is possible to get inexpensive shoes there too though the quality might not last long if you consider what some do to their own shoes...but we have department stores and boutiques that can be just as expensive as even Harrod's costing as much as $300/£150 or more for a single pair of "cheap" sneakers...

I suppose if you want to eat in a greasy spoon (i.e. workers cafe) you can eat cheaply otherwise, there is no way. MacDonalds two years ago was $10 a large meal. A basic sandwich will set you back around $4. The cheapest Brazilian restaurant in London two years ago was charging $36 a head and this didn't include drinks or desserts. These are just some prices I can remember.

With regard to accommodation your price of $220 for a B&B did make me laugh. last November I paid less than this for a five star hotel in Buenos Aires with terrace, extra large bed and full breakfast. What a difference..... I hope the B&B is good, because we have had some terrible experiences with B&B's when travelling to the north of the UK.

Primark is now the top store in the UK to shop for cheap clothes. It has become so popular for everybody. Primark have their own website - just google it. You can clothe yourself for literally nothing.

Let us know what else you need to know.

Regards

Michelle

[LadyLily43]

Thank-you to everyone who has been helping it is much appreciated... Michelle; what you were saying about the places to eat; does that include pubs? I ask cause here in the states; the local pubs have often been in the various cooking and travel shows about London and other cities in the UK for cheaper but still delicious fare...problem is they mention nothing about how much an average meal might cost in any one of them...