Deloitte Relocation Allowance

Deloitte
#1

Hi Guys, I got made an offer from Deloitte for audit, and I wanted to find out if they offer a relocation allowance (or is that just reserved for the advisory kids?)

Cheers.

#2

No relocation offer. I’m surprised they offer it to advisory trainees. How much do they get?
The only finacial assistance you get is the £7k interest free loan which all big 4 offer grad trainees.

#3

Well I don’t know if it’s 100% true but I saw someone mention on a forum on TSR that consulting/corpf get between 1-2k signing bonus (or relocation allowance) I’m only asking bcoz I wanted to kno if the green dot help out new trainees that are relocating. Guess I’m gona have to do some mega saving!

#4

Here is another angle. You take £7k loan and whack it into eg, a fixed bond paying a good interest rate.
At PwC your repayments are £145 per month over 4 years.

Depending on your finacial circumstances and assuming your cash flow allows, then by taking the loan and depositing it you have an instant savings account of £7k rather than building up that capital over 4 years of putting £145 into a savings account.

This is a pretty clumsy way of explaining but I hope it makes sense?

#5

wikijob. financial planning made easy. great stuff guys! I think Deloiite take repayment over a max of 3 years, plus I believe 7k is a taxable benefit, as it’s over the 5k limit according to HMRC, which may make any gain negligible.

#6

^ What the last guy said.

Take out 5k as it’s tax free. If you’re joining Deloitte it’s not really a ‘loan’ either, but a forward payment of your salary for the following 3 years. They deduct whatever you owe from your monthly pay packet. Not too sure how it works at the other Big 4 though.

#7

At PwC the £7k loan is arranged with NatWest. They like you to open a NatWest current account(into which your PwC salary is paid) from which the monthly repayments are deducted.
You will see on your offer letter that the loan attracts no taxable BIK on the employee as per arrangement PwC and HMRC.

#8

So PWC pay the tax for you. Sweet! Does anyone know if the other Big4 firms do this aswell?

#9

Guys,

Let’s put all this into perspective.

First employer/HMRC agreements for the treatment of employee perks, expenses, entertainment costs etc are very common. They are expeditious for both sides. Saves on massive amount of data collation for hundreds of employess, reporting, paperwork etc and the employer will come to an agreed block settlement with HMRC.

Second. The amounts involved are peanuts. The benefit in kind is based on the open market interest rate for a commercial loan at arm’s length.
Well, interest rates currently are pretty low and then the tax rate applied is 20% .
So it’s llareggub. (looks like a Welsh word til you spell it backwards).

In summary, an interest free loan is a no brainer. Take it!!!

#10

Hi guys,

Just wondering if you take out a £5000 “loan,” then whether you would pay less income tax and NI contributions on your salary.

i.e. on a yearly basis
e.g. Salary £27,000
by taking out £5000 loan would i pay tax tax on £22,000?

Basically, is the loan tax deductible?

Thanks