AIBU to feel disheartened by earning into the higher tax band?

Enjoy it while it lasts OP. IF Reform get into government you'll be paying hundreds a month in Health Insurance and inflation on top.

Surely you’re not being forced to do this job though?

Just take a job that’s lower paid if you feel you’ll be better off.

Tbh I feel more sorry for those who’ve spent years working their asses off and still can’t earn over the £35k mark.

At least you have options now.

Pensions are already taxed when you start drawing down. They are also going to be included in your total or inheritance tax purposes.

There are a few things you can to legally to pay less tax. It's not dodging paying, its legal means to reduce your personal tax burden. You need to see a really experienced tax accountant. Do your own research before going. Your bank might provide advice, you don't have to take it.

Ask your employer what alternatives are in place regarding the tax effect on high earners. Or do you just move abroad.

How the fuck is this 'Socialism at work' when higher earners have been taxed at the 40% tax rate during the previous 14 years of various Conservative governments?

If someone is going out to work, and that work doesn't pay enough for them to live, so has Government has granted them an allowance to bridge the gap, then why is that less deserving money than someone who is going out to work and that work does pay enough for them to live?

Would the optics be better if there were no in-work benefits, so that only people out of work got 'benefits' and businesses were given huge subsidies so that they could pay a reasonable wage? No. Because then people would moan that they work so hard as a high status professional and they're only getting a bit more than the waitress/bin man/cleaner, so what's the point?

At least with in work benefits, society knows where to point the finger at the scum, hey?

At least it’s deducted at source I have to pay mine over. So it’s in my bank account then I have to transfer it over to hmrc. Paid £30k to them last month. Of course it’s right to pay tax but this is ridiculous.

Funny that it would have been exactly the same under the last government. 🙄

And some are paying in and not seeing the benefit, I for one am on a massive nhs waiting list and may have to go private rather than suffer for months.

Salary sacrifice affects your pension (certainly your NHS pension) as it’s a DB pension.

Pension, pension, pension!!!!

Same - I’ll trade as well.

DH stuck additional voluntary contributions in to his pension scheme for many years. I think you can put in up to 60k PA.

Our state NHS and social care model is one big reason wages in that sector are so low. 70-80% of the total market is effectively one buyer: the govt. If you don’t like abuses of monopoly power (monopsony, technically) start there.

Uc days out tickets are often £1 entry

Yes and families are included in the lower entry fee.

Why would it reduce your pension? It shouldn't affect that at all. When we worked it out, it means that the money you would have paid in tax is the bit that pays for your car. It should also bring your salary down enough that you get your personal allowance back and access to things like free childcare? I'm definitely not an expert, but it may be worth double checking and fully running the numbers to check.

I'm not the best at explaining it but roughly it's because the EV tax rate is only 4%. If you get one on a salary sacrifice scheme the cost is deducted before tax, so brings your overall tax down to below the threshold. Obviously it only makes sense if you actually need and want a car. It's to encourage people into using electric cars.

How does that work @Hiddeninthetrees? When I had a company car, it increased my tax, not reduced it. A lot of people gave up their company cars when they got promoted into the higher rate tax band, because it doubled the amount of tax they paid which, on top of a hefty contribution for personal use, made it an expensive way to run a car.

Seriously… universal credit it not earned income. Hardly the same thing is it.

I don't know if you drive, but the electric car schemes are often now really good for bringing down tax, essentially meaning that a chunk of what you would have been paying in tax goes on a car fpr you, without costing you anything extra.

Fiscal drag is rubbish and is the direct hangover from furlough.

Fiscal drag. Yes it's annoying but that's a hangover from a Tory policy that the current government has hung onto because they inherited a huge mess.

You do keep the other half so are better off. But if you can manage without the pay rise, put everything you earn above £50k into a pension, you'll need to do a tax return to claim it though.

You bother because you still earn more money.

Or because you otherwise wanted the job/promotion.

You can always give it up and go on the luxurious benefits, right?!