to think a 40K salary is not enough???

[slippytoes]

I've been offered a permanent full time job earning 40K, which at first sight looks great but....

I just realised this will stop all child tax credits!!! Then we wont have nearly enough to rent a 1 bed (let alone a 2 bed flat) in our current area.

We live in zone 2 (very expensive!) and moving is not an option since DD goes to school in the area and is well settled in... I dont want her to lose her friends and change schools!

Also, because the new job is full time I will need childcare, which also means extra costs! I was thinking of getting an au pair but we just cant afford it!

I am a single parent. I really want this job, it's a great opportunity. 40K is a decent salary!!! AIBU? How do people make it in London? Should I ask my new employer to pay me less? And how can I make this work? :(

33%?
gotta run, good luck OP

Beware of any bonuses,over time or perks such as medical/ car etc as if they add up to over 10k you'll start to lose your CB.

I think you're supposed to declare maintenance payments too(check though as I could be wrong)so you could be nearer the threshold on the new salary than you think.

This bracket is a shitty bracket to be in if you're a one income family.

On £40,000 what could you afford to rent? If you are working in Southwark then it seems crazy not to move here and really save on your rent and commuting costs. SE is the cheapest part of London (hollow laugh, but ykwim).

I'm afraid it is madness to stay put just because of primary school.

Surely you get money from dd's dad?

retropear is that child benefit (approx £80/month)? Yes the job comes with gym, health insurance, pension etc... don't know the details though.

You need to decide what is important to you. You can't have it all. Live in a nice area with little commute for you and your DC, and an interesting job that may help you to better off financially in the future.

I don't blame you for wanting it all. And it is rubbish that working would leave you in a worse financial position. But it is simply not possible.

Mintyy good areas for families in SE London?

£3,500 a month? You're having a giraffe, come on.

How will you be getting £3500 a month on 40k? Surely it'll be a lot less than that.

Anyway, 40k as a single parent isn't really enough to live in London, or live out and commute in. Completely crazy, but true.

You might need to get rid of the gym,medical etc if you'd rather have the money from bonuses and not lose CB.

Could you get an accountant to go through it all?

Hundreds of threads on here with great advice about SE London. I would say Nunhead, Brockley, Honor Oak, Hither Green, Hilly Fields, Beckenham (further out but cheaper rent). Herne Hill, East Dulwich and Forest Hill are overpriced imo.

40k is around £2477 a month isn't it.

Fruitsalad - she get maintenance for her dd from her ex-p.

Thanks!!!

Op I think you're getting in a bit of a tizzy here and are in danger of moving too quickly.

You need to stop and think.

1. are you prepared to move?
2. can you put up with a little short-term pain if you accept the offer? (ie shelling out for childcare, XP helping out more, calling in favours?)

If so, accept the job then regroup and do your research properly wrt where to live. It will be possible to make it work, but as a pp said, you can't have it all.

Slippytoes I live in SE London. I am in the borough of Southwark but right at the southern tip. Our local primary schools are all Lambeth and are outstanding. They are Paxton Primary, Kingswood Primary, Elm Wood Primary and Rosensale Primary. There is also Dulwich infants and Juniors but Dulwich village might be too pricey! There are also excellent primaries in East Dulwich and you would be in catchment for Charter secondary school. It is a green an leafy area, good transport links via rail, and a heck of a lot cheaper than zone 2/3 in North London.

I think you put in an in year application once you move. Find out what schools have vacancies in the year your daughter is in and go take a look.

If you get too close you can up your pension payments- great for longterm but crap for now when you really need CB.

Under 40K will still make you eligible for basic rate tax and therefore full £243 of childcare vouchers if your new employer is in a scheme?

Are you saying that you currently get more in benefits than you would in a full time job paying £40k?

you don't pay tax on maintenance.

"London is for the rich, or those on benefits true i am afraid, or for those in LA housing."

Rubbish. Zone 2 in North London, maybe. How much is your current rent? DH and I earn a lot less than 40k.

Congrats on the job offer, by the way!

I agree that you're rushing a bit.

1. The starting point is to work out your total income today.
2. Then to work out what your total income would be if you took the job at a 40k salary, allowing for the effects of tax credits, etc etc.
3. Then to work out what happens to your income if the salary were a bit higher or a bit lower.

But even before getting to salary variations, if 2 is higher than 1, then isn't it worth it anyway? Not least, because your salary will grow over the years to come.

And if you can actually bring in a higher net income by having a salary of say 38k instead of 40k, and you tell your employer that you'd like to do that, I can't see them saying no!

Surprised you know so little about basic money and life skills yet managed to get yourself a £40k job!

Obviously you should take the job if you think about your future. And obviously you need to move somewhere cheaper, preferable somewhere near work or with good rail links to work.

Agree with PP that Central london is for the rich or people on benefits.

I really can't emphasise enough the importance of sitting down calmly and doing all the maths in detail. All the sources of gross income, all the costs that come out automatically to affect your net pay.

NynaevesSister thanks a lot!

Current rent for 1 bed is £1400, £1600 with bills approx. Price is really good for the area but have given notice to the landlord anyway because the property is really run down and they don't plan to refurbish it - they just hope someone else desperate enough will move in. Ah, London :)