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

@Chocolateapot For those who are saying they would swap, would you swap the years of studying I’ve done - basically sacrificed my 20s to do a job that I thought would be worthwhile. Just feeling a bit dispirited to see so much being deducted every month.

Given that I sacrified my 20s and worked hard to end up in a job which is a good bit below the higher earner threshold, yes please, I would love to swap.

Im on a Plan 1 student loan (unlucky fuckers on Plan 2 have my full sympathy) and I have been paying it back for 9 years as I’ve worked full-time since graduating. Ive paid of ….. drum roll £189 in TOTAL.

I believe you mean you've paid off £189 as the net value. You would have paid in substantially more than £189 from your monthly pay slips over the past 9 years, but inflation means your loan has only come down £189 from the starting value.

I'm not familiar with the NHS pension, but sorry what's the reason for not putting more money in through salary sacrifice? Salary sacrifice also decreases your student loan repayments (salary sacrifice is deducted BEFORE you pay the student loan). It sounds like you are unlikely to ever pay off the loan, so using salary sacrifice to minimise student loan repayments as far as possible is a good idea.

Its shit. Student loan plans are ridiculous and more proof that as a society we hate the young.

Can we stop calling the NHS ‘a miracle’? It’s a disgusting way to describe a public service that leaves people living in pain for YEARS.

I have gone back and forth on this. I was once all in favour of scrapping the cap. Now I am not so sure.

Agree. Monumentally unpopular move. Lost them votes and money.

Is 9% higher than what I pay now, while earning just under 50k?

I can't believe they are going ahead with scrapping the child benefit cap. They also need to stop the taxpayer funded breakfasts and dinners. The country is skint. Pay for your own choices in life - don't expect random strangers to pay for them.

Well agree that would be a start, but it won’t be enough to pay for all is asked. And these people can leave- they are mobile .
our economy is struggling. We can’t afford to continue spending what we currently are, and the cost of borrowing is escalating.

I haven't been able to get a GP apppointment in the same month since Covid. I thought myself lucky to get one after waiting 6 weeks, and that lasted 5 minutes on the phone. I had surgery overseas because the waiting list was 3 years long.The NHS is not a miracle where I am.

That doesn't mean I am going to vote Reform. I am not. But I know others will.

100% this. People doing the right thing are losing a fortune in tax and not seeing a huge difference in lifestyle compared to those not working.

Given the progressive tax system is not new and you saw this coming why did you bother if you don’t think it’s ‘worth it’?

Personally I just focus on my take home and don’t obsess over tax, and it’s very obvious to me a higher salary IS worth it, even if that does mean paying more tax.

Pay more into your pension to keep your earnings now the 40% tax threshold, that’s what I do.

thank you for that exchange - am pissing myself

Please never stop being you

I think a good start might be to not accuse everyone who criticises current policies of wanting kids and the elderly to die. But that seems impossible.

Hyperbole on both sides.

There are no others.

Beyond ISAs and premium bonds, there are no other tax free savings you can invest in legally.

The closest you can get is to invest in pensions for legal tax avoidance, (although occasionally an NS&I product might come along like it did during Covid).

You've made a fool of yourself and it's absolutely hilarious.

Honestly, I think it's worth it. The NHS is a miracle, whilst schools could be better, we have good education, our vulnerable are cared for. It's tough when you're at the stage of not using services and only paying in, but one day you'll see a parents cancer cured for free, your children getting free education, your elderly neighbour getting carer visits and support..... It's not perfect and services could be better, but when you need them there is something there. You're still taking home everything you were before plus half of your increase and once the loan is paid off (which presumably you chose to take out in the first place) then you'll have that bit too.

As a high earner I don’t understand it. You still get more money left at the end of the day? And it can grow further.

the only problem is 100k cliff especially if you have young kids

Sorry but I think you’re really naive if you took a student loan without understanding the impact…I and all my friends were also 17 and understood what ‘loan’ and ‘interest’ means.

Until Britain addresses this we are fucked. We are losing workers and all incentives to do well.

OMG please stop digging

This is hilarious!

You're clearly trying to defend the government's economic policy without understanding what it is.

It's very clear you didn't realise that, yes, the interest on people's savings are taxed at 45% if they are middle earners.

Are you an adviser to Rachel Reeves? 😂

You mean pensioners and kids with SENDs? Because that’s where most of it goes. Would you prefer to have them all put down? A final solution?

This !!!!

Ah but… are the benefits actually there if you need them for your £50k earner if they get laid off?

Given the savings threshold, which one would imagine you might be able to accrue in well paid work, you aren’t really entitled to very much at all…