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.

I agree, start practicing your arm ripping.

Definitely go for it!

St John's Wood is a lovely place to be, and if you're on £40k with no rent or utility bills you'll be able to do loads. I lived in London until last year earning £40k & even paying £900 rent + bills I still was able to do pretty much everything I wanted to - a few nice restaurants, clothes, holidays etc.

I wish.

I was going to bring up same point as lady, check how much you’ll be taxed as housing and utilities paid will be classed as ‘benefits in kind’ you could call our tax office.. HMRC and ask them.

It will probably still be fun and good in your CV though.

40k with no rent or bills? You can live like a king!

SJW is a lovely area.

£40k is shit loads if you don’t have to pay rent or utilities.

You don’t need a car.

Enjoy! :-)

I paid double tax Sprinklestar not because I earned shedloads but because my first year, I was a UK employee seconded to the US. So paye came out of my UK salary being paid into my UK bank account but, because I was working in the US, I had to pay full US taxes. My company even sent me to Ernst and Young to have them explain all this but all I heard was "blah blah blah blah tax tax blah blah" Then I cried when I had to pay loads of tax because I hadn't listened to the bit about claiming one countries worth back.

The biggest cost is housing and if they’re taking that burden away then you’re laughing

I think you need to find out how much rent will be covered and where you would live. You will be well-off on £40k with no rent to pay. But find out if there is a restriction on the amount they are prepared to pay towards rent. And Council Tax on an expensive rental might work out to be a quite a lot. Are they paying that too?

You'll pay NI for NHS. It's not like in the states where, if say you need an ambulance, your private Heath care will be billed. You would be treated by the NHS and transferred to a private health care if and when.

It's plenty to live on. Check what your employer provides in the way of tax equalisation. You could be eligible for tax in the UK and your home country. Other than that, it really depends on what your job is? £40k for an expat in my industry with accommodation (and I assume travel and shopping etc to the UK) is a bit crap. I'd expect £50k+ ... but it depends on your industry. Look online at what salary's are being offered for your job role

I think you'd be a fool to pass up such an opportunity.

Grab it!

spugzbunny US citizens working in the UK don't need to pay NI, as there's an agreement between the two countries. If the OP became a more permanent resident, that might change, but initially she wouldn't be liable for national insurance.

If you don't want the job can i have it please. What an amazing opportunity. Go for it i say.

I was in a similar situation when I came to the UK for the first time. They originally put me up in STJW wood but I really didn't like it. I moved up to Hampstead after the first six months and liked that a lot better. They paid for my accommodation for the first three years which was fabulous. The magic words you need to hear are "tax equalised". I made over the threshold and was going to be liable for tax in two countries but PWC sorted it all out. I just signed the forms. It really depends on how much you're used to making in the US and if you need to keep paying on a mortgage in the US. I made lots more than 40k and it still wasn't the same standard of living as "home". People in the UK make quite a bit less than Americans in salary and expectations are very different. You'd be better placed to ask on one of the American expat facebook groups.

You do really need to check they aren't low balling you significantly on salary as that's the lowest by a long stretch that I've heard of anyone who qualifies for what I'm assuming is an tier 2 visa making. For it to be worth moving someone over they tend to be reasonably senior. If you have kids they should include school fees as well. I'd negotiate tickets home 2x as well.

I would imagine your accommodation will be taxable as a benefit in kind and potentially your private healthcare as well. Maybe check these out before you accept

Do it, do it, do it.
You will have a ball.
Work out the details but don’t hesitate. London is an amazing city and pretty safe. Lots to do for free and London doesn’t have to be expensive.

Sounds like a fantastic opportunity. I would however be asking myself how does the salary/package compare to what you get in the US and if it’s better then definitely go for it.

I say this because a family member of mine has recently relocated to the US for a couple of years with their company and has negotiated a package that includes rent, furniture, car, health insurance for all the family, an annual allowance for flights for the family back to the UK for visits and a decent pay rise that will cover the cost of the mortgage and council tax on their UK home while they are in the US.

This makes it a great move for them as it’s very financially advantageous, so was a no brainer. If you can say the same then go for it!! Best of luck OP

Yes - it’s most than enough to live on especially if the rent is paid as other have said.

However that is not the point. What is the typical market rate for that job in London should be what you are asking surely? If it’s 40k without accommodation normally it’s an awesome deal on the surface you’re getting. Assuming 1500-2k per month rent, you’re looking at a package worth ~70-75k I guess because you would have been paying rent out of your net salary.

Of course If it’s 150k, not so much. Only you know what it should be as we don’t know your job.

LOL you pay for the NHS whether you use it or not I'm afraid.

Check out "Listen To the Taxman" - it is a UK website to calculate taxes x

You’ll be rolling in it!

I earn 21k and half my salary goes on rent/bills. I still manage to get by and even go out to eat every now and again.

I live very near to St John's Wood, it is lovely. Lots of Americans settle there, and there's great deli with proper smoked salmon, beigels and all manner of American food stuffs too.

£40k will be more than enough if your rent and utilities are being paid for. SJW is close enough to walk into town, and cabs/Ubers are reasonably priced too. If you're living so centrally you don't really need a car, London is more like living in NYC in terms of not needing a car, and not like being in LA where you do need a car. SJW is close to Regent's Park and Hampstead Heath too.

You should definitely do this! Good luck.

How do you think the NHS is funded? Individual people paying into it if they think they will need it and others paying privately if they want to go private? That is not how it works.

People saying you will be "ok" on 40k.

With no bills to pay...

Really...
Just ok??????

Your be living it up for christ sake!!!!!!

St. John’s Wood Is nice and walking to work is lovely. We consIdered sjw when moving to London, thought it pretty expensive and are paying £20k in rent for our accomm so your offer could be amazing.