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.

Lucky you OP! Housing costs are extortionate in London, but everything else is arguably more reasonable than other parts of the uk/other cities. For example, most museums are free and there is so much within walking distance, or buses are cheap. There are so many restaurants to suit all budgets, tipping is only 10% and you don’t have to bother with tipping in pubs. And if you fancy a short break elsewhere in Europe, there are many cities only a 2 hour flight away. I think food and clothing is cheaper than the US, but I haven’t been to that many places so can’t say for sure.

OP, on a less serious note:-

1. Learn UK humour (unless you're already aquainted). 2) Learn as many swear words as possible.?
2. Enjoy regional food/drink, it's very good actually, honestly.
3. Just don't stay in London, there's a whole lot more beyond the M25/Watford Gap. Go beyond the usual touristy bits as well
4. Try and get a taste of a British Xmas.
5. You'll never know, you might like the UK so much...that you end up staying.

I didn't think Americans ever talked about having "beans on toast."
To me, "beans on toast" is a very British thing to eat. (Speaking as an American).

No kids, year overseas,in a nice bit of Ldn.i can’t see a compelling reason not to go

OP must already be something of an Anglophile if she’s referring to ‘beans on toast’ - a meal totally alien to my American friends and a source of great hilarity once they found out what it was!

Lovely area. You could ask if they will cover a travel card too?

Not strictly true @birdladyfromhomealone
There are companies that own properties or have long lease rental agreements that make what OP is suggesting possible. They hold these for this very reason. There’s no reason to believe this isn’t the case.if you’re looking to know how I know this, I’ve worked for multi national companies that do so. They aren’t short leases for tenants, mainly secondees who come for a year or more.

OP as others have said, check how this affects your tax, a benefit in kind is taxed at source and before it’s paid for you. 40k is plenty if you get it all. But you may find your tax is hefty. Speak to your employer and then a HR rep here who can help you.

As an American you will need to do tax returns for the US as well as pay taxi in the uk, which will be on your salary and... benefits in kind, so your rent and the like so be prepared for that.

Lucky you! SJW is the dog's bollocks.

Oh wow... Can I come stay?

Jesus OP, if you turn this offer down I’ll be right behind you (to take it for myself)

Be aware you'll be paying tax on your earnings here and there, though. My American friends moved to England for a few years and paying double taxes nearly broke them.

When I first moved to London I was only paid 17k and had to pay my own rent and bills, it rose to 21k basic after 3 years and I was earning about 25k with over time. I lived in hackney. I think you will be more than fine on 40k and no rent or bills!

Dh went abroad in Europe from the U.K. Idk how it works for you. He didn’t pay tax abroad. He was tax equalised. That means you get paid in the your home country and pay taxes as if you were living there. The company then pays all the other taxes. Check if there are any other benefits. If the cost of living is deemed more expensive in the U.K., you may receive some kind of additional benefit for this.

From a legal, country perspective, unless something has changed in the past 10 years, you will be classed as a U.K. employee and have the protection of British employment law. I’d be very surprised if it had.

Double taxation does not apply under a certain threshold, through, and I am pretty certain 40k is well below that threshold.

You will need to check out the tax situation with a specialist and depends on dates of stay but the UK has a double taxation agreement with the US so even if you end up paying in both you should be able to claim one back, generally the worst one for you but should still be fine. Your employer is likely to know. HMRC is the British tax office who should also be able to help, at least of the UK taxes and double taxation agreement.

Amazing opportunity.

Cushy deal, OP.

You should not have to pay for NHS care. The cost of prescriptions is rising all the time, it's currently around £8 to get a prescription filled.

I read somewhere that women in the US have to pay $50 per month for the oral contraceptive pill, even when they are on an insurance scheme. Even at £8 the UK prescription charge is peanuts*.

• Usual comments about it being another drain on the budgets of families on low incomes apply.

Thats fabulous OP. I would check the value of your utilities and rent costs as they could be classed as a benefit in kind, and taxed as if they were cash. I'm not certain about the UK/US thing - so it could be classed as essential accomodation costs (expenses) and not taxable because you could hardly commute now, could you....

Ummm £40k will be fine 😂

You'll have a lovely time. To put this in perspective, you will be earning more than the average HOUSEHOLD income, and not having to pay rent, utilities, commuting, or look after a dependent. Practically all your money will be fun money! Take the offer, do lots of cheap trips around Europe and have fun

St Johns Wood is lovely. Really nice area, close to Regents Park and good tube links. Go for it OP!

£40k a year spending money and living in all expenses paid accommodation in St John’s Wood. Pack your bags now.