jbrown

No, renting versus owning is not a distinction for council tax (it pays for the provision of essential services) so, other factors notwithstanding, you will have to pay that, and it could amount to £150-200 per month, depending on the value of the property. I believe there's a 25% discount for single occupancy.

dunroving

Here's a handy net salary calculator for normal people (i.e., regular earners without any exotic tax situation):

http://www.thesalarycalculator.co.uk/salary.php

re: VAT, at least it is rolled into the sales price, not like the States where you buy a $10 shirt and the price at the till can be anything from $10 to £12 depending on what state you live in - so in the UK, "What you see is what you pay". Also, unlike the States, there is no "state tax" on top of national government income tax. And as has been said, property taxes in the UK are lower than many places in the US (though where I lived in rural NC, property tax was actually lower than my current UK council tax).

Brigette

Thanks. I guess it will be a good thing that I will be staying with family until I get myself on my feet..a job, saved some money etc. Thanks for your patience...I left the UK as a child with my parents so now I'm trying to learn all I can before I return

ETA: thanks dunroving for the link. Ah I see about the VAT. Thanks for breaking down the tax information. Makes more sense now

dunroving

Some landlords will pay council tax, but they are the exception.

Also, if you rent a room or two in a homeowners house, they may quote a rent inclusive of council tax (and sometimes bills). With the government's rent-a-room scheme (something like £4,000 p.a. rental income allowed tax-free) and the poor economy, I think more homeowners are opening their doors to lodgers - check www.spareroom.co.uk.

Yes, I get the single-occupant discount (I didn't tell them about the dog!)

jbrown

Oh, you're very welcome. If you're staying with family and are employed in the usual way, taxation isn't something you will really notice in the UK (beyond the reduction in money coming in ). Most people using PAYE in the UK do not need to file a personal tax return at the end of the year. The only other factors to consider are US tax liabilities (depending on your status, although there is a double-taxation agreement) and the first year of residence in the UK, where your tax situation may be slightly more complicated. You may want to think about the timing of your return also. Note that the UK tax year runs from April 6th, not on the calendar year, as in the US.

jbrown

Yes, it's certainly worth checking the tenancy agreement, but it's fairly unusual, and the rent would then reflect that cost.

Brigette

Unfortunately mid to end of summer latest SEpt (heaven forbid) is when I'll be able to move. Yes I'm deciding what to do about the US tax liabilities (it's such a pain). What would be the best time to return for tax purposes?

jbrown

Took me a while to get used to that when I first moved to the US.

jbrown

It really depends on your situation, so I wouldn't like to offer specific advice. If you plan to transfer significant assets, I would recommend professional advice. To give you an example though, you do get a personal tax-free allowance each year in the UK (assuming you're not a high earner), which resets each April 6th. I'm sure you're aware of the US filing requirements as a US citizen. Also, don't forget about your FBAR, due each June for the prior year.

Brigette

Sorry for the misunderstanding..wasn't asking for advice, just your opinion. I'm currently in graduate school and upon graduation next year will be going home. So no significant assets or anything like that... as previously mentioned...curious with a quest to know all that I can before returning home

jbrown

It's just that I don't want to offer you bad advice/opinion that isn't pertinent to your situation. If you do straddle two tax years (i.e. you return somewhere in the middle of one), your UK tax-free allowance still applies in each tax year, so that is something to consider in terms of timing your return, depending on your employment plans.

Brigette

The tax situation has led to a fervent discussion here a few wks ago.. still haven't decided what to do...

http://britishexpats.com/forum/showt...=736804&page=2

jbrown

So you aren't currently a USC? Honestly, I wouldn't base my decision about citizenship on potential tax complexities. There are some, but they're hardly profound. You'll have to relinquish your GC once you become a UK resident (i.e. immediately) and thus any possibility of becoming a USC via the GC. Of course, if you really have no ties to the US or expectations of ties at any point in the future, then it might factor, but it certainly wouldn't drive my decision.

johnh009

Yes, a very accurate observation. For me, the UK (in my field at least) has some very good contract rates that I can take advantage of and I do not need a permanent job for the health benefits because of the NHS.

Brigette

Not the driving decision, but the thought of having to pay taxes etc to US for the rest of my life is a pain. A huge decision of course...one I have to made in the upcoming year.