Where is your household income?

[RoyGBivisacolorfulman]

https://ifs.org.uk/toolsanddresources/wheredooyoufitt_in#tool-results-section

AIBU to think this doesn't reflect society as a whole as there is a lot of wealth especially in business that may not get classed as income?

People I know are in the top 5 percent.

The illustratous 85k that has been talked about on here is

With a household after tax income of £84954 per week, you have a higher income than around 99% of the population - equivalent to about 65.3 million individuals.

Guess people are property and inheritance rich too.

My aunts and uncles are way richer than me but my income looks better on paper. They are retired with lots of property.

Where do you feature on the scale? Clearly nobody has to answer.

It's not the whole picture far from it I think?

Just curious how you got that figure?

The thread you're referring to was asking if a family in London would struggle on 85k. Subtract income tax and add a couple kids and somewhere in the top 20-30% is more realistic.

How does this remind you of that?

you have a higher income than around 97% of the population

apparently most of the high income households are all on mumsnet according to that calculator

I think it's the same issue as always- people complain they're feeling the pinch, because still need to pay private school fees or finance on 2 Range Rovers, but they don't understand this is where they spend their wealth and that they can afford it

Always these ridiculous tropes. The reality is that people earning high salaries have a large percentage deducted in tax so that their net income isn't much more than a couple living in a cheap area on a far lower salary paying less tax and receiving UC (tax free). They them have to pay high rent/ mortgage costs to be able to live where they are to earn that high salary, and huge childcare costs because they can't pay those housing costs without working full time and don't have Uc paying up to 85% of their childcare costs.

These housing and childcare costs are therefore only a "choice" in the sense that they could be avoided by giving up their well paying jobs and moving somewhere cheaper and having their living costs subsidised by the state. It would not be a good idea to suggest that the small proportion of net contributors to tax in the UK do that.

These expenses are not "luxuries" and such people are far from rich if you do a proper comparison based on disposable income after tax, benefits, childcare and housing costs.

Simple. He made profit, it's his choice that he decided to spend all the cash he had. Same with people here who decide to spend 60k of disposable income and complain they're not better off than people who don't even have 60k before any taxes and basic expenses.

Income is only one factor, my in-laws have a much smaller income but have 2m in properties.

Are people putting in gross income or net?

That's rubbish

I earn the same as my colleagues
Live in the same town
Have families if the same age

Sone of them are tremendously "feeling the pinch" and sone of us are not

Because I chose a smaller house in a less popular area so half the price , we only have the one car ... shall I go on?

You only pay half on tax on the amount over the tax band

So salary 45k take home 2885
Salary 75k take home 4379

That's a big difference

@xogossipgirlxo

But that's not the point here is it? This is about cost of living varying massively from place to place and about income only being one factor in determining wealth.

It's nothing like an idiot not paying his taxes.

People on lower wages pay childcare too, to maintain their employment. Also, the assumption that everyone on 20-30k income claims UC and lives off your money... 🙄

We are in the top 1% according to that but it's highly inaccurate.

But surely to get there you have 20k a month net? so pre tax 400k plus @DrySherry??

In the bank

Higher than 55%. Really surprised as net income £38k. We are not struggling but are close to and sadly a lot of our friends earn way more so we feel very poor - needing to put a weeks camping in devon in a cheesy holiday park on credit card this year for instance. (yes I know there are many more worse off than us!)

Its the cost of living mainly, extra costs about 200pcm and one source of income has dried up meaning we are earning 4k less this year.

One problem with people grasping the reality appears to be that they haven't calculated how much they'd have to earn as a gross salary to receive what they do as net income between their net pay and UC, child benefit, childcare funding etc, because these are untaxed, and they have little idea of how the overall percentage of tax you pay on your income increases rapidly as you earn more when this is factored in. I think if many did that calculated and realised the gross salary they'd need to earn to have the net income they do entirely from their own earnings it might bring more sense to the discussion. That is the only way that a proper comparison could be made. Then factoring in self-funded rent/ mortgage and childcare on top of that and comparing the remaining disposable income.

It only allows you to declare dependant children under 18. What aboutvthose of us with two kids at uni that we are supporting?

So far off the scale I can't be shown to the right. So top 1% or more.

I’m actually not talking about private school fees. I’m talking about a council run childcare 3 days a week so I can work, the local Catholic primary for my oldest plus after school care, and a nanny the other two days, both because it makes our busy lives simpler and it’s cheaper than 2 x childcare and 1 x after school care, and I couldn’t get any extra days at childcare anyway so if I couldn’t afford the nanny I couldn’t work those days. For the first time I think we would actually be better off if my husband dropped a day of work.

Screenshot

To my surprise I'm in the top two thirds of the population with an income of around 15,000 but no council tax - live in France and no need to pay income tax as my income is too low.

It also depends how it's split, which is why it asks for net. As £150k per year by one earner will yield very different results to £150k by two equal earners.

Our net income is 68k - so that makes 72nd centile. DP is living a top 30% life for sure, given the amount of packages he receives. But he is also very good with money and has no DC's. I have 3 DC's (one at uni and the other two are spendy teenagers) and have about 8k debt to service (due to a divorce and having to pay back a large chunk of money to my parents for a house deposit). I am definitely not living the top 30% life, I live paycheck to paycheck and often run out, but on household income it looks like I am. We have about 60k in equity and 5k in savings and both have NHS pensions - so asset wise I am good but that doesn't feel like 'my money' but shared money.

Cash poor, asset okay. Even if your household income is great the reality is that every day life isn't always well managed. This has given me the kick up my arse to sort it out though. Thanks OP.

They're adults. Supporting them is considered optional.

Are you meant to enter net or gross income? It doesn’t actually seem to say

You have to put your net income in not gross. It says in the instructions.

Net, it does say in section 2.

The problem is that is doesn't account for disparities in many essential expenses, only Council tax.