This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

offer / comp comparison between UK and US

klee15
Posts:1
Joined:Wed May 03, 2017 6:58 pm
offer / comp comparison between UK and US

Postby klee15 » Wed May 03, 2017 8:54 pm

Hi,
I just got the offer from UK and need some guidance on whether this offer is allowing me to live a similar life style in London.

Currently in SF area in US with base salary of 270K, 35% bonus, 35% LTIP or EGOS. What should be 'minimum' base salary, bonus % and LTIP / EGOS % I need to expect in order to retain a similar life style given the fact that tax % in London is higher than in SF. I also have two children where I need to send them to international school so that cost is being factored through relocation benefit...housing rent we are targeting is around 4K in London area as FYI.

Any practical guidance would be greatly appreciated!

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: offer / comp comparison between UK and US

Postby darthblingbling » Fri Aug 04, 2017 3:40 pm

London doesn't levy a tax. Technically you will pay a council tax for local services, but income taxes are paid to HMRC at progressive rates of up to 45%. Stock options are treated as employment income at exercise (difference between price paid and exercise price taken as this deemed income), it's similar to how it's treated in the US.

At your level of income you would have no access to a personal allowance and you can't itemise deductions like you can in the US. Although there are some limited options to reduce your taxable income.

You'll also need to pay NI contributions (our version of social security) which will add a bit more onto your bill.

If you're a US citizen or Green Card holder you'll also need to file US tax returns on your worldwide income. I'd advise you speak to a UK/US tax specialist and get a proper report done if you want to figure out what to ask your employer in terms of potential wage and bonuses and it will interact with your US filing obligations. This is actually a specialism my firm deals with if you wish to engage us. Otherwise the big 4 should be able to help.


Return to “General”