AIBU to refuse extra hours when most of the pay goes in tax?

Couldn't you have increased your pension contributions instead?

No, but OP and people like her are generally the one's who vote for political parties who refuse to implement wealth redistribution policies that would address the issue.

Also around 85% of billionaires reside in the country of their birth and 90% of UHNW individuals stay put in the country they earned their money in, so this narrative of "oh they'll just move if we tax them" is a myth, and even if it wasn't, it wouldn't be hard to put in policies that address that too (a la USA).

Some good points in this post.

Higher earners should pay more tax; it’s how a fair society works. I appreciate there are issues around cliff edges etc.

And lower earners should be paid fairly for the work they do - in work benefits shouldn’t really be a thing, people should just be paid properly.

I’m somewhere in the middle.

But the stats won't include people who "could" earn over £100k but have chosen to reduce hours and refuse promotions etc so that they don't. So the stats show a warped view of the reality.

Come on OP. Get working. Someone has to pay for the freebie takers on benefits. What will they do if other people are not breaking their backs to support them.

This is exactly why me and the majority of female Drs I trained with are not full time, and some of the male ones too.
I earned approx £150k last year and paid £85k in tax. It doesn’t make sense to see less of my children, family, friends for a system that doesn’t even appreciate what I do.
I now decline the waiting list initiative sessions for locum pay as no point.

No. I've cut my hours because 5 days pw isn't worth it.

“The richest 5% of the population earn more than the 50% of the poorest. It's about time they paid their fair share. Is sitting watching your portfolio grow worth more than doing vital work for the population eg taxing the richest another 2% on their investment would barely be noticed by those earning well over £1million pa from investments.”

The OP is not earning 1 million from investments though is she?
Also, whenever they go for the big dogs then they just pull their cash out of the country at a drop of a button now and the rest of us end up paying even more. Everyone tax resident in the UK is surely paying at least 45% tax if they are getting a high income? If they are investing it back into business and paying shares on Dividends and offshoring etc that is another matter.

Those with millions always find a way to structure around it in a legal way somehow.

In London, two professionals with an income of 200k who have to buy a house for 800k minimum now are NOT RICH. You just end up driving a lot of people out. Cost of living depends on location. The tax system is overly complex, unfair and does not take into account people’s actual cost of living, how many kids they have etc. Hence many people are cutting back on their full earning potential. That is happening. People are even telling their own kids to live in their garden (see my neighbour’s child living in a caravan with a medical degree). That is where we are at in this country right now.

Agree, better to focus on them than to have various points in the tax system where workers on Paye face ridiculous marginal rates.

I dropped hours at work to 32, partly to avoid the 40% tax band but also because I value time and relaxation over money. I did this a few years ago, during the last government. Tax bands have been around for a long time, it’s nothing new. Never felt the need to post about it on mumsnet though. Are you in genuine conflict / unsure about this?

It's the poorest, lowest earners who are supporting the rest of us. They are paid poverty wages for some of the most important jobs eg care of the elderly, teaching assistants, nursing, refuse collection, bus drivers etc so the richest can get more profits which they off shore to foreign countries to avoid tax.

We need to equalise tax paid on unearned income like share holdings, with tax paid on earned income, doing jobs which are vital to our wellbeing.

The richest 5% of the population earn more than the 50% of the poorest. It's about time they paid their fair share. Is sitting watching your portfolio grow worth more than doing vital work for the population eg taxing the richest another 2% on their investment would barely be noticed by those earning well over £1million pa from investments.

@MandemChickenShopim assuming because you lose free childcare at 100k

Only if I could put the money in my pension to avoid that marginal tax rate. Otherwise no.

Um?!?

well it doesn’t affect them in paying it, but it does rather affect them if the 5% decide not to.

I don't can't have children but if I'm asked to work overtime, I ask for TOIL instead of payment.

Thats bad. How does it work out like that?

Right, but the 55% isn't a tax, its a reduction in benefits. I see what you're saying, that there's no incentive to earn the additional money, but I think saying most of the pay goes in tax is misleading.

Exactly because of the 60% tax trap

Beautifully put.
I done blame anyone that makes these decisions in fact people would be mad not to.

It is terrifying as we are driving those people abroad. Or incentivising them to retire or work fewer hours.

If you are nearing retirement and you pay into your pension pot it’s worth remembering that you can withdraw 25% of your pot tax free from 55-57 years old. So pay 67% tax now or put the money tax free into your pension and get 25% out tax free in the near future while still investing the other 75%.

“I’ll grab my tiny violin, you nip over there and see if you can get a bit of perspective.”

Thanks, I am getting lots of pleasure playing my cello on my day off now. And using some of it to manage my investments in my ISA as that is more lucrative than working 10 hour plus days. It is funny how much money you save when you actually make time to manage your own spend wisely, rather than working 24/7 for everyone else’s benefit.

Or you could just be grateful that they make such huge contributions to the state and that you benefit from…

Gosh that’s terrifying.

I’m loving people earning over £100k describing themselves as slaves! 🤣

I’ll grab my tiny violin, you nip over there and see if you can get a bit of perspective.