to ask if this is a reasonable salary/package (for an American in London)?

[Cecily85]

I was thrilled to learn that I can transfer with my employer to London for a year. But I'm not a banker or executive, and I'm worried about whether or not the proposed package is even reasonable for London.

My employer will pay for my housing/utilities, and the salary is 40k pounds. Is 40k enough to live in London if I don't have to pay rent/utilities? Or would I be living off beans and toast?

And...how much would be taken for taxes? I'm single with no dependents.

I need to let my employer know by the 29th, and wanted to get some input from British people who can give me a real perspective on what it would be like to live on this package in London.

So rent and utilities paid? Sounds OK though not lavish. How much rent though? If you have to commute a long way that will cost a bomb.

£40k to feed, clothe and entertain yourself? I think you'll survive!

That is plenty with no rent or bills. V comfortable in fact. Tax usually works out at about a third bit I'm not sure how the housing being provided would affect it.

If you’re not paying rent or utilities it is reasonable. Housing is the big cash drain in London.
I’d look into where they are housing you though, transport can be pretty pricey.

If you're single and don't have to pay rent or utilities that's plenty. Where in London will they put you up though?

Yes if all bills are paid £40k would be a lovely amount to live on. What about Travel / childcare ? What do you do? Where would your accommodation be situated?

In terms of tax If it’s standard UK tax rate before pension as a rough guide take home would be around £2500 a month

No rent or utilities? Definitely enough.

That would be a take home salary of just over 29k.

You need to remember the double taxation law. You will pay full US tax as well as full UK tax. At some point, you stop being a resident of one of the countries for tax purposes and clam back all the tax from that country. It stings financially until that point though!

(Assuming the tax rules are still the same from when I worked in NY over 10 years ago)

With no rent or utilities you'll get along very nicely OP. You should have money to enjoy yourself and save some.

Agree with all the others. You won't be out at Chiltern Firehouse every night but not eeking out the beans on toast either.

You need to look at tax treaties between your current country of residence and the UK to understand your tax treatment if you move here.

Do you have any idea of where they would house you? Transport costs can be killer.

This is an official take home pay calculator.

Will you have health insurance and have to pay separately for it? You would only be eligible for free NHS care if you are ordinarily resident in the UK and that wouldn't apply for a while.

£40k sounds like a good salary if you're not paying for rent. It's the housing that's extortionate in London.

Tax is 20% between £11500 and £45000, 40% up to £150000, and if you earn over £100000 you have to file your own tax return (otherwise tax is deducted automatically from your salary).
Bear in mind that whatever you get for housing and utilities from your employer will be counted as a benefit, and your employer will have to declare that to HMRC and pay National Insurance contributions on the value of it.

You need to see where you are being housed and what your commute is like.

Whereabouts in London will your office be? Can you choose where you live or do they have accommodation for you?

You probably won’t end up paying tax in both jurisdictions. You have to files your US taxes as normal, but unless you’re earning $$$ then when you go to the lookup tables, you shouldn’t have to pay anymore as you’ll have met your tax liability in the UK.

OP will not be paying full American taxes while she's living here; American overseas income tax liability kicks in somewhere over the $80k mark ... so she would only owe taxes on any income (including value of rent, utilities being paid) above whatever the current number is.

Go for it, OP! Take the opportunity while you can!

National Insurance will also be deducted from your salary. It's deducted at source and is basically just another tax.

Other than that, as others have said, you might not be having a 'champagne' lifestyle but you will probably be having a cool time.

Oh, and you might struggle to get car insurance in Britain because you are not a British citizen. (I don't know why that should make a difference.) You may have to get car insurance from your American insurance company so you are insured to drive.

Pickle - she’d need to earn a fair whack more to even begin thinking about dual taxation!

On the face of it sounds fine. But check! How much rent will they actually be prepared to pay. £2000 a month? For how long?

And you need to make sure they pay your health insurance.

They said that the flat will be in a place called St. John's Wood. Is this a safe area where I could feel secure walking alone at night, etc.? What are the disadvantages to this area? I will apparently be able to walk to where I work in about 20 minutes.

I would want more that double that to live in London - its a toilet

My employer will provide global private health insurance, so I don't think I'll need to be paying for NHS as well. Or will I?

Will it be possible in the St. John's Wood area not to have a car?

Good god, OP - if you don't have to pay rent or utilities, you are golden on £40k.

Seriously, I have never ever had that much to spend, and I have lived a very full, good life in London for years.

Bloody hell, they're also housing you in At John's Wood and you can walk to work? Bite their hand off.

SJW is a rather nice area with some proper swanky bits, fairly central too. You'll be absolutely fine there and can walk around freely. And I wouldn't worry about car insurance, you probably won't need to drive at all while you're here.

Of course these things are relative, but that is a very good salary if you are not having to pay rent of utilities.
The vast majority of Londoners live on £24 000 or less, and they do have rent and utilities to pay.
You'll survive, really.