Until now I have always worked near my home in the South of England, currently for a salary somewhere between 35 and £40k. There is the possibility of a move to London, for which the initial suggestion is around £50k. That headline figure sounds like a nice bump, but of course I have to offset travel costs (currently negligible for my nearby office) and I will also lose an additional two hours of my day commuting. I'm settled in my current town and don't have any serious intention of moving.

To help me consider the offer, I want to split out the increase into three headings - direct cash cost of working in London instead of locally, an element of "compensation" for the irritating commute, and the remainder (if any!) as a simple pay rise for doing a "higher level" job.

Can anyone here help me put a figure on these? Obviously the second category is extremely fuzzy, but I'd be grateful for your thoughts. Hopefully the first is simple enough. The third is then up to me to base my decision on.

Note that this pay rise would take me into the Higher tax band, so it's not a simple linear increase.

(Apologies if this is the wrong SE; I found a similar but not identical question here so thought this would be in scope.)

Thanks for your help.

  • Search for "cost of living" comparisons. – keshlam Dec 12 '15 at 14:15
  • 1
    other than the cost of train tickets or whatever for the commute, how do you expect the "cost of living" in London to be relevant when you're not living in London? Serious question. If you expect to pay more for the lunch you'll buy each day, or to need more expensive clothing, then you are on your way to make the list for that first category of expenses. I doubt anyone else can help you do that, though. – Kate Gregory Dec 12 '15 at 18:55
  • To work out the first item, we'd need to know where you live and where you'd be commuting to, but I guess you can just work out the travel costs for yourself. – Ganesh Sittampalam Dec 12 '15 at 20:56
  • There are number of websites to compare the costs. Compare these and you can get an idea. google.co.uk/… – DumbCoder Dec 12 '15 at 23:13
  • 1
    The more of the higher-rate-taxable income you can funnel into a pension and get tax relief on, the less of a concern the "non-linear increase" should be. Never too early to start one! (Caveat: there seem to be widespread expectations the taps will be tightened on this largesse in the April 2016 budget; we'll see). – timday Dec 20 '15 at 15:58

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.