Help (this relocating lark is not easy), I’m in the process of compiling something that can be loosely or laughingly described as a plan of action for relocating to Denver Co (USCIS willing, God willing etc,etc), some of you have already kindly provided excellent information, however my next set of problems/questions are as follows:

1. Am I correct in thinking that due to the current dollar conversion rate, I’m better off agreeing that my salary is fixed & paid in dollars at the current rate (knowing it may go up slightly, but is more likely to go down) and not having my agreed salary paid in the UK in sterling (maybe offshore) and then having to convert to dollars for day to day expenses.

2. I think I generally understand the rules on leaving the UK so therefore qualifying under non-residency to being exempt from UK income tax. However I’m assuming that I must still have to pay a form of US income tax irrespective of my choice of salary payment i.e. paid in sterling in the UK or paid in dollars in the US.

Please except my apologies if the above is a bit general or completely baffling, but any help would be greatly appreciated.

Please also put me in my place if the above questions do not belong on this forum.

Many Thanks

Scan
:scared:

Yeah, you'll have to pay to the IRS regardless of where the money goes if your a permanent resident.

Other things to consider, bring over as much bank statement and credit related stuff over here, it might help with getting a credit rating, it might not, but it's worth a go.
Also, bring over a letter from car insurance company regarding any no claims you might have, it could help reduce insurance by a lot, but then again, it might not, but it's worth it just in case

Oft discussed on this forum, and in both cases the answer is a firm "NO", it makes no difference.

Ray, another poster on this form, his wife works as an insurance broker and confirmed that insurance companies do not, ever, take non-us insurance and driving records into account. Anyone who claims they were given a "special rate" taking into account their non-US insurance/ driving records has been the victim of good marketing!

Non US credit history is similarly irrelevant. The only things that you can do to help is if you have an Amex, BankOne, or MBNA card in the UK you should be able to lean on their US parent to issue a US credit card on the back of your prior relationship with their UK subsidiary. Even then you'll probably have to whinge a bit at customer services to get them to do it.

On the salary thing, I think that taking sterling salary off shore is going to become a pain in the behind, and make establishing a credit history even harder as you won't have a regular US$ income coming into a US bank account from your employer. Regular transfers of funds from overseas, apart from incuring transaction charges (typically $25 for receiving funds into a US bank account), also tend to ring major alarm bells in the US banking system in a post 9/11, USA PATRIOT Act world, and may therefore cause you more problems you can do without.

Thanks Pulaski, I think I almost answered my own question, with the current exchange rate being so good, it’s probably best if I agree the dollar conversion in the next few days and be done with it.

On the banking/credit history situation, does this mean that if I open a international type bank account with say Lloyds TSB in the UK, it will have no effect on my future US credit rating?

Correct. Only US institutions (banks, credit cards, utilities, etc) give data to the the US credit rating agencies.

I moved here 6 months ago and opted for $ salary. This proved to be the cirrect decision. We're saving in $ - my guess is that the $ is high against sterling. I'm hoping for a 10-15% drop by the time I go back. I have not given this much thought so am interested if anyone thinks different.

Take your pay in the currency you will spend it is, unless you fancy and can afford the speculation risk.

As others have said, the tax man will have his share anyway.

You will be non resident for UK tax purposes, but the Channel Island accounts pay poor rates, as do US accounts. Even with the tax break you are usually better investing Sterling in the UK.

And nobody knows what rates will do, you could say the Pound is bound to suffer, but willl it suffer more or less than the Dollar. Rate is currently the same ish as it was 6 months ago when the pundits were saying it would fall. Your guess is as goos as anybody elses.