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.

Will you have enough to buy something somewhere to rent out maybe ? Having your rent paid for means you won't get on the property ladder and when you change jobs you won't have anywhere to live . Obvs you could save And but outright maybe ?

Sounds great - you won't need a car and £40k is definitely enough. I was earning £28k and paying for a flat etc. Sounds brilliant.

Golden opportunity. Bite their hand off!

As a note, if your employer will pay for the housing/utilities, you will have to pay tax on that sum. It's called "benefits in kind". The tax will be deducted from your net pay, therefore take this into consideration as well when calculating the take-home pay from your £40,000 salary. This tax calculator tool will allow you to add the benefit in kind value as well, and it will accurately return your net pay (and your total "net value" that includes the rent) by taking the tax on the extra benefits into account. (adjust your salary at the top, and scroll down to the "Extra income" section to add your Other benefits in kind).

In your case, as your salary + the rent benefit in kind will go over the higher earnings threshold, you'll pay higher rate tax (40%) on some parts of the sum that is accounted for the property rental benefit in kind value.

I hope it helps!