Many Indian Professionals think that moving to Europe will lead to substantial savings.
The salary is certainly lucrative, and it can be an improvement, especially for those from smaller cities.
However, it’s important to learn about the taxes and high cost of living in the UK before making the move.
The UK
The UK stands out as an incredibly vibrant country, with a rich cultural diversity, and a thriving Indian community.
Furthermore, London’s status as a major financial center opens up a multitude of opportunities for Finance Professionals.
But wait! There is more than one aspect that comes into play when you are considering relocating to this new country, or any country for that matter.
“If anybody is planning to come to the UK to save money, they need to reconsider their decision. This is not the place where you save a lot of money in a short span,” says CA Ayush Laddha, Senior Manager – Technical Accounting at The Ardonagh Group in London.
Salary you can expect in the UK
The salary structure in the UK depends entirely on the company you are applying to, however, it can be remunerative, especially in the finance sector.
- For a manager-level position, the Big 4 firms offer £65,000-£70,000 and above.
- Senior Managers can earn up to £90,000-£95,000.
- Finance Directors typically earn £120,000 or higher.
If you are applying for a niche role like a private equity CFO, the pay scale is much higher, ranging from £150k to £180k, plus bonuses and equity.
Cost of living in the UK…is quite high
A one-bed apartment in London will cost no less than £1600-£1700. Rent will form at least 70% of your monthly expenses.
Also, rent prices in London are higher compared to those in smaller cities.
The taxes are another concern. The UK income tax system is progressive, meaning that the higher your income, the higher the percentage of tax you pay.
Income Tax Bands in the UK:
- For Taxable Income income of £12,571 to £50,270 you have to pay 20%
- For an income of £50,271 to £125,140, the tax rate is 40%
- And for a taxable income of over £125,140, you have to pay a tax rate of 45%.
Don’t expect that your savings will automatically double or triple just because your salary is higher.
So, should you relocate?
You cannot say – I’ll work in the UK for three years, save millions of pounds, and return to India.
Move to the UK if you want a better quality of life.
The UK has excellent infrastructure. It boasts a universal healthcare system and a robust education system.
In the UK, eligible employees have the option to take maternity leave for up to 52 weeks. The first 26 weeks are referred to as ‘Ordinary Maternity Leave,’ followed by the remaining 26 weeks known as ‘Additional Maternity Leave.’
Additionally, one may qualify for either 1 or 2 weeks of paid Paternity Leave.
The great work-life balance offered by the industry also won’t let you leave the country.
Determine your goals and the duration of your stay in the UK first, as this will significantly impact your choices.
Wrapping Up…
When considering a move to the UK, prioritize career advancement, cultural exposure, and an enhanced quality of life rather than financial gain.
If your professional background is primarily in finance, to stand out in your application, you need a unique selling point.
Become skilled in AI and machine learning as companies are actively recruiting individuals with expertise in these areas.
