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

😂 ok

Yeah, my 2 adult DC felt like this when they hit the higher tax bracket 2-3 years ago (they are both around 30 y.o.) But it didn't take long for their salary to go up and up with bonuses and promotions and so on... They're glad they took the promotions/higher income now, because they're near to 6-figures now (not London,) and are doing well.

Put the amount you are over the 20% bracket into your pension.

I recently went over the 40% threshold. It doesn’t massively bother me. I’m still making more money. I accept I have to pay taxes for the benefit of society.

It was exactly socialism that started this.

I can elaborate but, as I've already explained, I'm choosing not to. It's not difficult to understand.

But OP isn’t complaining about paying tax at all - she’s complaining about now paying a 51% rate on any additional pound earned.

More than half of any additional earnings is taken through PAYE.

That is very significant in terms of the motivation to do more work - earn £1000 extra on the basic rate you take home £720. Earn an extra £1000 in OP’s situation and you take home £490.

And that’s ignoring all the additional cost to employer, employers NI etc.

As for ‘but she was living on less’. She might have aspirations to buy a home, have a child etc. It is typically expected as you go through your career you earn more money to support a better lifestyle eg having a house and kids. This expectation everyone should be simperingly grateful to be earning beyond the minimum wage is bizarre.

Please stop making this into a benefits bashing thread.

You have no idea how poor the other half of the country live.

When I was on benefits as a single parent I had to choose between eating myself or having hot water.
I had a mattress on the floor as my bed and seating area for years and no TV or anything.

There are children having no clean clothes, going hungry and not being able to eat breakfast, yet you’re moaning about their parents getting £10 a week free school meals so they don’t starve and can concentrate in class.
And these are the people that you are suggesting are better off than receiving £3k+ a month on a £50k salary.

Well don’t Chocolate for working hard and doing well. I don’t blame you at all for feeling hacked off with it all.

Ok - except the OP was living on less
on a lower salary. So just put in pension contributions to match that, save the tax, live off the same money as before and OP is still better off because that pension money can be accessed later.
or if someone REALLY resents paying the higher rate of tax on the extra money earned then drop down on salary or hours.
As a highest rate tax payer do I want my tax money going on healthy working age people who aren’t arsed working? No. But do I want U.K. children to have food, education, healthcare, decent housing. - yes. Do I want transport systems, nice public spaces, playgrounds, leisure centres, the NHS, my DParents to get their state pensions, public services - yes. Do I think we need a military? Yes.
We don’t get to choose where the money goes exactly but I do know that not all of my tax money goes to ‘scroungers’…
And OP is paying tax on EXTRA money earned. Seems they’re MOST pissed off at paying money they BORROWED and somehow that’s suddenly a ‘tax’.

Right so higher earners have lots of ways they can grow their cash tax free, but you can’t actually elaborate on what those are.

I’ve done the same. It’s worth it!

And dp who is extremely skilled and works in private company earning over £100k has “bought” holiday through his company’s holiday purchase scheme so he gets an extra three weeks off work this year.

The result? We are two HIGHLY productive individuals now contributing less to the economy because it’s not worth our while. Why stress out for 55 hours a week like we use to?

My company btw hasn’t given a cost of living of payrise to anyone since 2021 and announced same again this year.

Oh and I work in the finance team where I have the pleasure of seeing the colossal bonuses that our executives earn.

The problem is capitalism is failing us, and we are all arguing amongst ourselves over the scrap at the bottom.

Socialism is definitely not at work.

There are others.

No, many people can work this out without needing a financial advisor. Seems the PP isn't one of them though.

All this points towards a shift in tax brackets so there is less of a cliff edge so perhaps 20 going to 25pc at £40k, 27pc at £45k....

Because you get to keep the other 49%

The only other tax free vehicle is premium bonds.

You don’t need a financial advisor for this kind of advice at this level.

Yes this, make voluntary contributions to your pension to keep it below the threshold, the gov gives you the tax back in to your pension. Also keeps you below the child benefit threshold and you get a large tax free allowance for savings interest (1000 instead of 500 I think)

Quite. School meals (or milk?) were introduced when the Boer War showed that most British men of fighting age were malnourished and unable to fight. They wouldnt have been fighting for their freedom, they would have been fighting for the rich men of Britain.
As today, the rich men made the state pay to fix their problem, so they could get richer.

You lose £1 of personal allowance for every £2 of earnings between £100-125k.

The childcare is the killer as it’s removed at a cliff edge. My childcare is worth ~£2k a month of tax free childcare and free hours (the actual bill is more than double that…).

So if I earn a penny over £100k I lose ~£25k net. To earn that back, I need to earn ~£155k.

There are other tax-free vehicles she can use. I won't elaborate since I'm not in the business of giving free financial advice. A good financial advisor can help her.

“We need a serious discussion about welfare spending and supporting business”

That ship appears to have sailed under Labour.

Just wait until you earn £100k and lose your personal allowance… and take home LESS than before!

Thank socialism for that x

As others I’m happy to shoulder the tax burden , but I feel that how that money is spent doesn’t feel right.

I want a disabled person to have the right support and financial help needed.

What does upset me is when I see a person choosing to working part time with top ups from UC, then judging others having to go to FT nursery saying they must be a awful mother….those parents working FT pays into the system that pays your UC.

That feels quite shit to be honest, and I’m seeing more of those high income people reducing hours and retiring a little earlier. Which impacts the money going into the welfare system.

We have to all pay our taxes fairly (billionaires as well) but we can’t keep pointing and asking one group, it’s a pyramid system and it’s creaking badly.

Don’t forget free school meals; free adult dentistry and prescriptions; no travel to work costs; access to many discounted children’s clubs (our leisure centre advertises them); no need for smart work clothes; Cold Weather payments. Plus as a SAHM shopping around can save on food costs etc. I’m long retired, worked since my DC were small, but as an ex housing worker, and a volunteer for a charity, I’ve met many women who could have worked but preferred the option not to - reason given - because they had children. Some were also being supported by the children's father/s.

The real hardship comes later, when they no longer have dependent children, and are on much reduced benefits, often in a property that is too big, and their housing benefit is reduced due to the what is known as ‘bedroom tax’. Hard to start at forty or older with no work history.