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

Is everyone really that confident that they'll never get laid off or made redundant?

Maybe it's growing up in the 90's where a lot of my parents generation were laid off, or maybe it's that I work in a sector where 1-2 year contracts are the norm, but I'm glad that benefits will be there if I need them... and I'm really not convinced they pay as much as people make out.

And has anyone actually tried to get a job in the last year or so? It's getting really hard!

Even if you're skilled/creative, someone somewhere is training an AI for your job right now - ironically a lot of the actual vacancies in my field now are for training AI

Not true at all. Which billionaires ‘arrange their tax to pay the little possible’? Most billionaires have a range of citizenships and will chop and change where they live depending on where suits them. Take Sir Jim Ratcliff. Recently moved as he was sick of the high levels of taxes here. His and others decisions to move leaves a big hole in the nations finances. RR knows this hence she hasn’t introduced a ‘wealth tax’ as it would simply hasten the exodus.

I can’t believe you truly think billionaires don’t pay tax. Have a look at the government stats of who’s paying and who’s avoiding tax. Don’t believe anything Gary Stevenson or Zack Polanski tell you. What they understand about tax could be written on the back of a postage stamp.

Lots of people here saying “I might as well go part time” as if that’s a bad thing. Isn’t it great to have enough income to take the hit of going part time? Spend more time with your kids/family, volunteer, walk in the park, read a book? What’s the problem?

If you’d rather that than the extra 49p/£1, crack on and enjoy it!

People want functioning public services, schools, hospitals, roads, infrastructure and so on. Nobody wants to pay the tax that funds it all.

Not true. There is no clear data about billionaires, but there are many left in the UK and a quick google shows you that, so the comment is simply polemic. It’s irrelevant anyway, because they pay little tax and organise their affairs to ensure that remains the case: they are not stupid. Their assets are capital, not generated by income and work, like the rest of us. They can’t take land and houses with them but they will be owned offshore.

You must, surely have clocked the transfer of power and assets from the state to private holders in recent decades?

The benefits bill will exceed the income tax revenue in 2026.

This line keeps being trotted out.
It is irrelevant.

What matters is the total tax take, not just income tax.
You have to include dividend tax, capital gains tax, inheritance tax, corporation tax (all the taxes that affect rich people and which need raising).
Plus things like fuel duty, alcohol and tobacco duty.
Plus of course VAT (which should be kept low).

The billionaires are making billions in our country: amazon, Starbucks etc have not left - they are here making a fortune. Tax the fuckers.

This attitude is the problem with the UK.

No everyone doesn’t pay tax. Most people are net beneficiaries.

if you work in an international / global role you can move to many other countries in the world (many of which even have higher wages)

The NHS is terrible largely due to mismanagement and wasting money on ridiculous procurement process & if you also pay for private medical insurance because you can’t afford to wait months for essential surgery without which you couldn’t work, then no “free” NHS is not a consolation prize.

Selling someone not to be bothered because their marginal tax rate is 51% is ridiculous. So instead of staying at home collecting benefits, she has gone to work and works for the government until lunchtime for every extra £1 she earns.

I can never understand why the anger is always directed down and not at the likes of fucking Amazon. How is it fair that the middle pay so much tax and Jeff Bezos earns a literal fortune and pays nothing. This is the problem. Not people on benefits. Im not sure where all these jobs for people on benefits would appear from anyway. Students with degrees cant even get jobs in coffee shops.

The billionaires have left.
The super wealthy are mobile. High earning professionals are not.

I think there is a middle ground between children begging on the streets and making hard work/ study pointless. I expect most people do, given the polls.

Yep, this is very much a problem. The key thing to remember is that it doesn't matter whether one thinks people earning on the cusp of 100k should be annoyed and take action to avoid it, it only matters if they are doing it. And the incentive to do so plus the time it's applicable have both recently been significantly extended, thanks to the 9 month free childcare provisions.

I think that house prices are a big part of this too.

Peoples lifestyles do not look as they imagined…!

But i do agree that it's the middle that is being squeezed and that is not the answer. Clamp down on the likes of Google, Starbucks, Amazon- if they want to trade here they pay their fair share of tax.

It's not sustainable unless we start forcing billionaires to pay tax. The super wealthy are the reason governments have no money. We cannot just stop paying benefits to people or our country would become a hell scape, with children begging on the streets and crime through the ceiling; desperate people will do desperate things. Do you really want to live somewhere like that? The fact is that there are not enough jobs to go round even if everyone were able to work. And that's going to get even worse with AI - it already is. We have to pay people a basic income if they either can't work or cant find work.

I get why it isn’t moving but is is disheartening. The higher rate was supposed to kick in on high earnings, but £50k is well within middle income territory (at least in London)

I thought the 16 hours thing was from the tax credits system pre 2012 reforms.

Paying taxes pays for our society to function. The issue is that not everyone pays sufficiently. And the taxes are not seen to be being spent well.
Many people do not pay their tax. A list is produced by the Government of defaulters. The person, the money owed. The amounts are diabolical.

Not some. Most.

And that’s where you’re wrong. I’m in London and most parents I know are falling foul of this.

A few years ago the value of the childcare was vastly less - only £2k if under 3, and the 15 hours and £2k if over 3. Now with 30 hours from 9 months - you might be losing out on £25k a year with two kids in childcare vs about £10k two years ago.

The incentives to do something about it are suddenly much greater.

Unless earning £160k+ you are best off using pension contributions or working part time to claim the hours.

And this has serious consequences - I know a lot of doctors and they are all working part time to achieve the above. That’s a terrible piece of policy.

And ‘on £100k you don’t need it’ - £25k is a third of the net pay on £100k. Over 40% if you have a student loan. The incentives to claim it are massive - you may end up losing money for earning more otherwise.

Id also challenge the idea higher earners are expected to pay massive taxes but not be eligible to use the services they’re funding.,,

Some are but I don't believe there are many where both are working full time. Loads only work 16 hours so they can fiddle the system.

People in the higher rate of tax used to have a very different standard of living to those on average income. Now there isn't much in it as they are paying a fortune in tax, childcare and repaying student loans! Not worth the effort anymore.

You do know that most people on benefits are actually in work. And the biggest part of the welfare bill goes on pensions.

Benefits are capped though.

Paying BACK a loan is NOT the same as paying tax! You borrowed the money - you pay it back! It’s like me whining that paying my mortgage loan is a ‘tax’.