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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Work doesn't pay

205 replies

Bucketheadbucketbum · 02/05/2023 14:59

Just that really

Got a promotion . Started new role in april. This promotion was one that I secured after a hard fought year, means taking on extra hours and much more stress . Big impact on work life balance, kids etc. Worth it I thought ....

NO IT ISN'T!!!

Seems since this I've entered a near 100% tax on my payrise, so thanks to current tax setup in uk, my take home pay is static!!!!!! yet responsibility and hours gone up

Planning to resign the promotion from my job

Ridiculous situation!

OP posts:
Thread gallery
8
trisfreya · 02/05/2023 15:00

So you have had a promotion and a pay rise and you're taking home the same amount?

What were you on? what was take home?

What are you on now? and what is take home?

Elle087 · 02/05/2023 15:01

Tax doesn't work like that in the UK.
If you are earning more you will pick up more.
What are you earning now? and what were you earning before?

AwaaFaeHom · 02/05/2023 15:03

That's not how tax should work. If your pay is higher your take home pay should be higher.

Maybe look into it further before you make your decision.

Nordicrain · 02/05/2023 15:03

you paying 100% on your pay rise isn't possible.

Effieswig · 02/05/2023 15:05

That makes zero sense.

no one pays almost 100% tax

TheRookie · 02/05/2023 15:07

If you are a higher tax bracket then it is quite scary how little a pay rise shows. My DH is, and he got £250 bonus recently. £84 in the bank 🤯

Sissynova · 02/05/2023 15:08

You didn’t get a pay rise and come out with the same take home. That just didn’t happen.

Merryoldgoat · 02/05/2023 15:09

This is just rubbish.

ilovesooty · 02/05/2023 15:10

Sounds very unlikely.

Noontimes · 02/05/2023 15:13

If you start earning over £100k your free childcare hours stops so that can be a situation where earning more actually costs you money!

Nimbostratus100 · 02/05/2023 15:13

it can happen with a small payrise that takes you just over into the next tax bracket, but see it as a stepping stone to the next promotion, don't resign.

AlltheFs · 02/05/2023 15:15

It’s ridiculous isn’t it. I have a similarly bonkers issue.

I have dropped my hours to 30 instead of 37 as otherwise my overall net income is less. When I’m full time I lose child benefit, pay 2% more pension contributions (it is banded) and all my rental income is taxed at 40% instead of 20%. When I add in 5 days at nursery instead of 4 I end up worse off.

I am happy on 4 days but if I wanted to go full time I’d literally lose money. When DD starts school and there’s less childcare I would break even but that’s no incentive! I’m in this little sweet spot where it’s better value all round to work less. Which is fine but also wrong.

mrsbitaly · 02/05/2023 15:15

Have you been emergency taxed?

Elle087 · 02/05/2023 15:16

Nimbostratus100 · 02/05/2023 15:13

it can happen with a small payrise that takes you just over into the next tax bracket, but see it as a stepping stone to the next promotion, don't resign.

No, even then it wouldn't happen.
For example if you move from the 20% tax bracket to the 40% tax bracket you only pay 40% on what you earn over £50k and not the whole amount.

AwaaFaeHom · 02/05/2023 15:18

Nimbostratus100 · 02/05/2023 15:13

it can happen with a small payrise that takes you just over into the next tax bracket, but see it as a stepping stone to the next promotion, don't resign.

Nope.

That's just not how tax works.

Original poster
Bucketheadbucketbum · 02/05/2023 15:19

Effieswig · 02/05/2023 15:05

That makes zero sense.

no one pays almost 100% tax

I don't pay 100% overall, but the additional amount I've earnt is effectively taxed at 100% as tip over a tax bracket, ni bracket, benefits lost

So net at the end of the month I'm no better off for working almost 20% more hours

I give up

OP posts:
WinterofOurDiscountTentz · 02/05/2023 15:21

yeah, that's not how tax works. It's progressive, not total.

If you lost benefits because of your payrise, that's different. That's how it should be.

JesusMaryAndJosephAndTheWeeDon · 02/05/2023 15:22

Resigning your promotion would be really fucking stupid.

If you are genuine and not just a troll you need to check your tax code is correct and get a better understanding of how tax works.

There are points where a tax threshold means your take home pay doesn't increase as much as you expect but you never pay 100% of your increase in tax.

Effieswig · 02/05/2023 15:24

Bucketheadbucketbum · 02/05/2023 15:19

I don't pay 100% overall, but the additional amount I've earnt is effectively taxed at 100% as tip over a tax bracket, ni bracket, benefits lost

So net at the end of the month I'm no better off for working almost 20% more hours

I give up

Show quote history

No, that’s not how it works.

Theres no tax bracket that’s ‘almost 100%’ so tipping over into that tax bracket will not see the rise taxes at almost 100%.

VoiceOfCommonSense · 02/05/2023 15:24

Just sounds like an idiot. If it’s true let her resign..

Shinyandnew1 · 02/05/2023 15:24

Seems since this I've entered a near 100% tax on my payrise

What was your salary before and what is it now?

Tiredmummaoftwo · 02/05/2023 15:24

When you earn over £100k you loose your personal tax allowance.

SeasonFinale · 02/05/2023 15:25

Bucketheadbucketbum · 02/05/2023 15:19

I don't pay 100% overall, but the additional amount I've earnt is effectively taxed at 100% as tip over a tax bracket, ni bracket, benefits lost

So net at the end of the month I'm no better off for working almost 20% more hours

I give up

Show quote history

Its just a pain barrier thing. Now you have past that zone any future increases will reap the benefits and it takes w hile to get to the next barrier. Hang on in there and the reward catches up as you succeed going forward, annoying as it is right now.

Tabootle · 02/05/2023 15:25

Bucketheadbucketbum · 02/05/2023 15:19

I don't pay 100% overall, but the additional amount I've earnt is effectively taxed at 100% as tip over a tax bracket, ni bracket, benefits lost

So net at the end of the month I'm no better off for working almost 20% more hours

I give up

Show quote history

Then they've calculated it incorrectly. Unless you've lost benefits of some sort and you're counting that too.

DelurkingLawyer · 02/05/2023 15:26

For all those saying it can’t possibly happen:

Those on UC who have child benefit withdrawn can be paying extremely high marginal tax rates - of 80-96% for a household with an earner between £50-60k.

https://medium.com/gk-test-blog/system-collision-the-interaction-of-universal-credit-and-child-benefit-withdrawal-is-creating-a-99e07a0b7a38

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