lylat

Sorry for the double post.

I had a question regarding this wiki post:
Company Relocation Packages US : British Expat Wiki

"Tax - An accountant for first year a must"

Can I ask for some clarification? Is this simply because of the number of tax-related forms that need to be filled out?

tom169

No way is it a must. I handled all our tax affairs myself researching things online when necessary. However, I had a simple tax setup in the UK.

MidAtlantic

I agree that it is by no means a must, but if your employer is willing to include it, take it. It will be one less thing to have to worry about.

tom169

I agree with that!

yellowroom

especually if you’ve never even had to do a UK tax return, which you will probably have to do leaving the UK partway through a tax year. And suddenly facing a US tax return on your own can be very daunting. Take any assistance you can.

Cook_County

Are the relocation costs & home leave costs grossed up for Federal/State/FICA purposes; or are you paying tax on them?

lylat

Uh - all the relocation costs are being expensed through the company, I have that much budget to directly expense... I think the company then handles the tax implications on that cost. (No idea if this answers your question!)

LouisB

Just going to say good luck with the move. 1 year will fly by but the experience will be invaluable for sure. 👍

lylat

Hey thanks for the comment - it's all somewhat daunting but looking forward to it.

Lion in Winter

I have no helpful info on taxes, etc., but GET WARM CLOTHING! You can wait until you get here for that, since it won't be desperately cold, most likely, until Christmas or so. A warm jacket is not enough if you will be spending any kind of time outdoors. You need proper winter boots, head covering, gloves, and a coat long enough to cover more of your legs - one layer of jeans/trousers between yourself and the wind chill will not be enough.

lylat

Yeah for sure, a friend of mine in Chicago showed me the forecast for "feels like -14C"...

Lion in Winter

We don't get worried until there is a negative degrees F showing Wind chill is not your friend. People get frostbite every year in Chicago from not dressing properly (ears, nose, fingers, toes, etc).

Polar Vortex 2014: Photos of a Chicago Deep Freeze | Colossal

2014 was colder than normal, and last year was relatively mild for here. But you never know what you will get on any given day.

ch2016

Well it's -5 C today and snowing. So yeah, warm clothes could be needed

Cook_County

If you owe tax on the relo allowance you will be roughly a third worse off. What did you negotiate? (When I moved to Chicago my employer grossed up the costs; so I got them effectively tax free).

lylat

So - it seems everything is still going ahead, I've been officially given the go ahead to (finally) book my flights.
They need me over there within the next 1-2 weeks... so I'm a bit stressed / in a rush.

A lot of this is new ground for myself and the company, this is the first transfer.

On my front, please let me know if I've not considered anything:
- I'm sending a form for my student loans to calculate payments whilst overseas.
- I need to apply for a social security card
- I'm trying to open up a HSBC International account before I go
- I need to inform the HMRC that I am leaving the country / working abroad?
- I'm paying my pension plan directly as I am on the US payroll
- I'm trying my best to get in touch with realtors about an apartment in Chicago, this has been somewhat difficult...

The company has received advice from financial/relocation lawyers/professionals but we're acting on it ourselves, it's left me in a slightly uncomfortable position as we're doing the paperwork on our own...

One question I had is the FICA payments coming out of my salary... I've been told my contributions will not really count towards anything after I leave for a year as I am on the US payroll rather than the UK payroll... is this normal?