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Topic: Typical relocation packages?  (Read 1534 times)

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Typical relocation packages?
« on: March 06, 2016, 12:38:51 PM »
I'm wondering if I'm getting a fair deal to relocate to the UK for 3 years for my company.  Neither of us has done this before so I put together a list which they are tentatively agreed to but is still open to negotiations.  Please let me know if I should add anything or am overlooking aspects of it. 
Also, what does a typical package look like so I know I'm getting close to what others get.

My package:
All moving expenses paid.
Spouse and myself have 2 paid visits home a year.
4 pets paid relocation to the UK with vet bills covered by me.
Salary increase to cover the high UK costs.
Paid flat for the duration of our stay equal to roughly £1500 per month.  I haven't pushed for bills to be covered with this, I hoping to get an all inclusive.
One car for myself.   Still not sure if I should push for cash to buy what I want or let the company choose for me which would end up being a completely inappropriate vehicle.  I will need to purchase my spouse a car at some point unless...
Spouse is hired by the company to run the new office.  She would then receive a package inline with mine on things that don't overlap.  If she isn't hired she needs to find employment on her own which may be difficult, possibly impossible due to her current field of work.  If that's the case then.....
My salary will also increase to cover the loss of her wages.  It equals out to roughly £40000 a year.  She would then most likely end up doing volunteer work to stay busy.



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Re: Typical relocation packages?
« Reply #1 on: March 06, 2016, 02:26:16 PM »
I'm wondering if I'm getting a fair deal to relocate to the UK for 3 years for my company.  Neither of us has done this before so I put together a list which they are tentatively agreed to but is still open to negotiations.  Please let me know if I should add anything or am overlooking aspects of it. 
Also, what does a typical package look like so I know I'm getting close to what others get.

My package:
All moving expenses paid.
Spouse and myself have 2 paid visits home a year.
4 pets paid relocation to the UK with vet bills covered by me.
Salary increase to cover the high UK costs.
Paid flat for the duration of our stay equal to roughly £1500 per month.  I haven't pushed for bills to be covered with this, I hoping to get an all inclusive.
One car for myself.   Still not sure if I should push for cash to buy what I want or let the company choose for me which would end up being a completely inappropriate vehicle.  I will need to purchase my spouse a car at some point unless...
Spouse is hired by the company to run the new office.  She would then receive a package inline with mine on things that don't overlap.  If she isn't hired she needs to find employment on her own which may be difficult, possibly impossible due to her current field of work.  If that's the case then.....
My salary will also increase to cover the loss of her wages.  It equals out to roughly £40000 a year.  She would then most likely end up doing volunteer work to stay busy.

Assuming a London move... £1500 rent with 4 animals might be a tad optimistic? Rent across the UK varies widely but London and the Southeast are pretty dear.

Have a look round websites like rightmove to see how that stacks up!
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Re: Typical relocation packages?
« Reply #2 on: March 06, 2016, 02:28:46 PM »
I'm wondering if I'm getting a fair deal to relocate to the UK for 3 years for my company.  Neither of us has done this before so I put together a list which they are tentatively agreed to but is still open to negotiations.  Please let me know if I should add anything or am overlooking aspects of it. 
Also, what does a typical package look like so I know I'm getting close to what others get.

My package:
All moving expenses paid.
Spouse and myself have 2 paid visits home a year.
4 pets paid relocation to the UK with vet bills covered by me.
Salary increase to cover the high UK costs.
Paid flat for the duration of our stay equal to roughly £1500 per month.  I haven't pushed for bills to be covered with this, I hoping to get an all inclusive.
One car for myself.   Still not sure if I should push for cash to buy what I want or let the company choose for me which would end up being a completely inappropriate vehicle.  I will need to purchase my spouse a car at some point unless...
Spouse is hired by the company to run the new office.  She would then receive a package inline with mine on things that don't overlap.  If she isn't hired she needs to find employment on her own which may be difficult, possibly impossible due to her current field of work.  If that's the case then.....
My salary will also increase to cover the loss of her wages.  It equals out to roughly £40000 a year.  She would then most likely end up doing volunteer work to stay busy.

Assuming a London move... £1500 rent with 4 animals might be a tad optimistic? Rent across the UK varies widely but London and the Southeast are pretty dear.

Have a look round websites like rightmove to see how that stacks up!

Also, at present, a Tier 2 ICT dependent can work, though lacking UK experience can make it tricky in some fields.
2004-2008: Student Visa
2008-2010: Tier 1 PSW
2010-2011: Tier 4
2011-2014: Tier 2
2013-2016: New Tier 2 (changed jobs)
16/12/15: SET (LR) successful! - It's been a long road...
12/05/16: Citizenship ceremony!


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Re: Typical relocation packages?
« Reply #3 on: March 06, 2016, 02:54:40 PM »
The £1500 is going to fluctuate depending on where I will be staying.  I've been living in Vauxhall for the last couple years and pay about that but the pets aren't allowed so I will need to move.  Is £1500 possible, yes but not likely near Central London.  Our office is in Dartford and while it's the still a high price market it's not too bad.  We have a satellite office in Edinburgh that my allowance will easily afford me a nice place and another one by Portsmouth that is also an affordable place to live. 
I could probably up my living budget  and will but at this point I wanted to give them a number that won't scare them.  I'm leaving it somewhat low to use as a negotiating tool later on.  If they take away something else I will add to that.  It's also a good way for me to have more say in which location I will be at.  While I like staying in London the work load is much higher than say Edinburgh.  It's the exact same work but with less interference from tfl and others.    They want me in London but for my sanity Edinburgh is better but I can't just go to that one, I need reasons why I won't go to London.  That low rental allowance could be one of them.  I'm hedging my bets alittle right now. 
Of course my company could just offer me one of the houses they already have but that would mean I live with others.  It's certainly an option but I would rather be alone with my family. 


Re: Typical relocation packages?
« Reply #4 on: March 06, 2016, 05:18:52 PM »
I'd push for a much higher amount to cover housing and utilities, as the amount you estimate sounds low for London with 4 pets  - and expect to be very limited in your housing choices.

Health and dental insurance that covers you in both US and UK: what would you do if you went home and were ill/need specialist treatment quickly in the UK?

Get car allowance and buy car - that way you chose which car you want, and will have something to sell at the end of your assignment.

Tax preparation while in the UK, and for the first year when you're back in the USA.

I've relocated countries 3 times now, it comes with culture shock and added expense but there are obviously advantages too, it just depends on what you want out of the deal.


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Re: Typical relocation packages?
« Reply #5 on: March 06, 2016, 05:33:09 PM »
All good points fruitgum. It won't be a total culture shock for me as I'm  here so often now anyway but I'm certainly not used to living as a native.  It's been nice not having to pay for a single thing these last few years.
The tax prep is a good add in I think.  I have an accountant here already but he is no pro on UK tax laws.  He is reading up on it in preparation and has made a few good points that I will be bringing up with work.

I would love to get my own car but they may not budge on that.  It would be ideal to get my pick and have them insure it.  Whatever they get me will be nice but with no thought in it.  Most likely I will end up with a new Porsche or high end Audi when I really need a truck.  A steed would be perfect.


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Re: Typical relocation packages?
« Reply #6 on: March 06, 2016, 06:01:44 PM »
Tax prep for both countries should be standard.

A company car will be heavily taxed, so push for an allowance instead.

Also standard for expat contracts are a couple of days added for travelling home to the standard allowance (usually two days per trip home over and above the required 28 day minimum).


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Re: Typical relocation packages?
« Reply #7 on: March 06, 2016, 07:21:34 PM »
Is there actually a semi standardized package?  Going over and over threads I see the same things mentioned but I haven't found it all in one place.


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Re: Typical relocation packages?
« Reply #8 on: March 07, 2016, 09:11:06 AM »
Standard package will include:

 - Moving of personal belongings (should specific an amount and how it is being shipped by land or air)
 - Visas for yourself and your family members
 - Pets (sometimes, not always)
 - Disruption bonus (usually 15-20% of your annual salary to cover miscellaneous costs, usually given both when you move to the foreign location and after you return home)
 - 30 days corporate accommodation (you will not be able to do use this with pets)
 - Assistance in obtaining permanent housing (the rental market is much different in the UK than the US.  They should pay for a company to help you navigate renting, be your guarantor for your lease, assist you with deposits, opening a bank account, finding a local doctor, etc.)
 - Private medical coverage
 - Annual return trip home for you and your family (flights, rental car, possible expense allowance, two extra days holiday)
 - Housing allowance
 - Car allowance
 - Tax assistance with both UK and US returns
 - Guarantee for repatriation at the end of the contract
 - International schools for children's education

Your contract should also be clear as to what happens if you terminate your employment prior to the end of the contract (will you have to pay anything back, etc.).

Also you mentioned they would pay you in GBP, not USD.  As this is a temporary assignment, you need to think about your US situation.  You *should* remain on the US books so that you continue to pay into social security to maximize payments when you retire.  If they make you a UK employee, you will be paying into the UK retirement system, which you will have no benefit from.

You've also mentioned that you make mid-six-figures for a salary but they are only offering £1,500 a month for rent (which will not go far at all in London).  A typical rule of thumb is that your monthly rent should be equal to 1/30 of your annual salary.  So if you are making £150,000 a year, your monthly housing allowance should be £5,000 a month.

You will find places that are willing to rent with pets, they are just fewer and further between.  When I moved, I came with two cats.  My assigned relocation expert had vetted the properties and only showed me places that would accept pets.  They are usually not high-end accommodation.  I would say 1 in 10 places will accept pets so you'll have less choice, but you will still have a choice.  Usually just a higher deposit is all that is needed.


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Re: Typical relocation packages?
« Reply #9 on: March 07, 2016, 11:59:12 AM »
Thank you so much for the info.

Them keeping me on GBP is there insistence.  I would much prefer to stay on the US system for the reasons you stated and more.  It is something I will have to push for but this always comes up where ever I'm working.  Even in the states I pay taxes to what ever state I'm currently working in.  It's a real mess come tax time.

My housing is low because I'm making it low.  At the end of the year my bonus will reflect saved costs on living under a certain amount.  Plus I'm using but as a bargaining chip as well.  I don't really need or want an expensive place.  This transfer is going to be a money grab for me so I'm trying to bend alot of things so I get max money back.


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Re: Typical relocation packages?
« Reply #10 on: March 07, 2016, 09:45:39 PM »
Also you mentioned they would pay you in GBP, not USD.  As this is a temporary assignment, you need to think about your US situation.  You *should* remain on the US books so that you continue to pay into social security to maximize payments when you retire.  If they make you a UK employee, you will be paying into the UK retirement system, which you will have no benefit from.

I thought that under the Totalization Agreement with the United Kingdom, a person would get social security credit for the years they worked in the UK?


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Re: Typical relocation packages?
« Reply #11 on: March 08, 2016, 09:07:34 AM »
I thought that under the Totalization Agreement with the United Kingdom, a person would get social security credit for the years they worked in the UK?

SSA.gov is pretty clear that if you are working in the UK for less than 5 years, you should pay into US Social Security and not UK National Insurance.

https://www.ssa.gov/international/Agreement_Pamphlets/uk.html


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Re: Typical relocation packages?
« Reply #12 on: April 16, 2016, 03:53:35 PM »
So I have been going back and forth with them on offers that we both agree on.  Here is the latest on which I think is pretty good but I still have concerns.

Visa for me and my wife for 3 years with the option of them assisting paying to get dual citizenship at the end or possibly extending the visa.

Pay all moving expenses including the pets.

Issue me a company pool car that will incur no expense to me ever.  I can recommend what car I want but they buy whatever they see fit.  Most likely it will be a high end car that is useless for me but whatever.

£7500 gbp for living expenses per month. 

I will be paid in both us and UK funds.  I can not budge them on this.  A small amount of my wages will go to my US accounts so I can auto pay my mortgages.

I will have an accountant assigned to me for my tax prep.

They will pay for both of our driving tests and any tutoring we may need.

I will get a money to cover any expenses incurred until I am settled in.  This would be for furniture, electronics etc.

No added health care in the UK.  I will be on the basic system.  I will have my basic health care in the states as well.  Neither will be a cost to me.


It all sounds good to me but I fell I may be leaving things out or should be pushing for more.  I'm really not happy about the choosing the car so that is my focus right now.  I have pretty much given up on being paid in us funds, just a small amount to cover my constant bills in the US that I can not change.


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Re: Typical relocation packages?
« Reply #13 on: April 16, 2016, 07:41:23 PM »
Visa for me and my wife for 3 years with the option of them assisting paying to get dual citizenship at the end or possibly extending the visa.

Others on here are better to answer the other bits, but if you and your wife are eligible for citizenship, it won't be until after you've been here for 6 years (5 years to ILR and then one year before you're eligible for citizenship).
July 2012 - Fiancée Visa | Nov 2012 - Married
Dec 2012 - FLR | Nov 2014 - ILR | Dec 2015 - UK Citizen


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Re: Typical relocation packages?
« Reply #14 on: April 16, 2016, 08:36:23 PM »
Things worth requestioning:
Shipping of belongings
Return trips home (flights, car, spending allowance)
Extra holidays to 'cover' time lost to traveling home
I would push for private medical such as Cigna International
Repatriation should be addressed and allowed for

Clarification on:
What if you decide to leave the company, what will you have to pay back and what will they still offer (they should still repatriate you for example)
Will they make you whole on your allowances.  Your car and expenses will be taxed at 40 or 45 percent.  Will your net pay be adjusted for this or will £7500 a month really be £4500 a month?

As you will be on a Tier 2 ICT, you will not be on a path that allows you to change jobs or qualify for settlement.  This is a temporary job, up to five years before you must leave the UK for a minimum of 12 months.  This is why a repatriation scheme is imperative.



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