There’s NO point earning over £50k?!

[ThisReallyDoesntAddUp]

Because of the £50k child benefit limit and 40% tax rate!

So I earn £78,000 pro rata overall now with my job following a mid year pay rise. This includes bonus and car allowance. I work 4 days a week (80% equivalent) which brings the overall pay this year down to just shy of £50k with a £9.6k bonus.

Out of the £9.6K bonus due in March, I’ve worked out 40% will go to the taxman, over £2K will need paying back for child benefit as I’m now over the £50k threshold, and a further £800ish will go towards my student loan. Deductions of just under £6k!!! This means I’ll only take home 30% of my bonus?!

I’m now on mat leave for baby number 3. AIBU to make sure when I go back I remain under the £50k mark by reducing hours even further?! I’d then have less to pay in childcare mitigating the difference in the pay I’d receive working an extra day each week.

Its an absolute joke, I was hoping to go back to work after my last baby and push on hard with my career but what is the actual point!! I may as well work less hours, keep the child benefit and pay less in childcare!

People have short memories. Everyone used to have child benefit. It was universal.

Then the Conservatives changed it. Apparently they thought benefits really were only for poor people... but actually they don't like universal benefits because it meant middle class people had a bit of solidarity with those who lesser incomes. The idea was to divide, and it's been very successful to judge the response on this thread.

People have short memories. Everyone used to have child benefit. It was universal.

Always forgotten

So is MIRAS

The majority of people “on benefits” are actually working, rather than the popular image of scroungers sitting at home doing nothing. They need the benefits because they are paid such low wages by large companies such as supermarkets, whilst the companies award huge salaries to their senior staff and dividends to their shareholders. Similarly, people struggle to pay their fuel bills and need government help whilst utility companies post huge profits and payments to their shareholders - these were once a publicly owned companies that didn’t need to make a profit/ pay their shareholders and any profit made would be put back into the infrastructure.

So much of your taxes actually goes to enabling private companies to make huge profits. That is a major reason why there is a lack of money for public services and not because someone already paying lots of tax puts a small amount extra into their pension - a pension that they will ultimately pay tax on again when they receive it. However, it is much more convenient for the government to blame/focus on the small person rather than large companies, particularly if they are party donors.

I sympathise with you OP and completely understand your thought process.

It sounds like there is lots of advice on this post but I decided to invest in our family business and it’s the same concept in terms of small businesses work real hard and of course we pay our taxes, have employees but it’s hard when you work so hard for everything you have and an extra few hundred makes a huge difference but it’s taken by the tax man.

I agree that hard work just isn’t awarded anymore. One of the reasons I decided to invest in a business was because of the flexibility I get to be a parent to my child and I work part time for someone else during the week to cover some of my own expenses when there isn’t enough to pay myself. We all (as workers) contribute so much to society - surely we should be taken care of. I was in the corporate space (before WFH was a thing and I saw so many careers going downhill because they took time off due to having children).

But it’s just a shame it has to be that way. I’d definitely look into salary sacrifice and other HR packages that are on offer (I know some places you can put money back into your travels or bike schemes??)

I don’t think there is anything wrong with working part time, reducing the childcare as long as when the time comes you are able to prove your skills, I’m sure you would have kept your network. Working part time isn’t as damaging as it used to be.

Yep. This really pisses me off.

Jamie Dimon Advocates Higher Taxes for the Rich (businessinsider.com)

God I can only dream of the salaries mentioned on here makes me wanna cry at mine. Mental health issues have prevented me earning more so stuck on 14k tops.

I guess the sarcasm whizzed over yours.

I wonder how often those who are green with jealously and consumed by hatred of those with higher earning potential actually bothered to improve their own capabilities? Did they work hard at school to get good grades to advance to higher education and incurring debt or years worth of extra training and qualifications? If you're on zero hours min wage what are you doing to change that?
Bringing everyone down to a low base won't change your life so fuck off from threads like this and plough your bitterness into opportunities to improve

You must be a high earner obviously.
So tell me who will do the lower paid essential jobs if we all strived for more don't be so judgemental

Why should people with plenty of money get benefits though?
It's like all the pensioners getting money for heating. 1 in 4 are millionaires, it's ridiculous. Give the money to SS and NHS not to rich people

Surely 30% of a bonus is better than no bonus?

and it also sounds like you have had a lot of benefit from our society in terms of education, (I’m guessing with kids) healthcare, and some child support. These things can only happen if we contribute our taxes.

It's really terrible getting a £3,200 net bonus. So worthless, you may as well give it to someone who really needs your small change.

I'll PM you my bank details.

@T0E - universal benefits like state pensions were the basis of the welfare state as implemented by the Labour Party.

Of course Conservatives do not like them. They like the idea of middle class people and those on benefits fighting like wet cats in a sack over small amounts. Which is roughly what has happened in the 12 years since this policy came in.

Osborne also implemented a chart showing exactly the percentage of income tax paid and where the money was spent. This also aggravated middle class earners in the upper brackets as they clearly saw that lower rate taxpayers effectively contributed nothing.

Very clever. The results of this narrative are all over this threat.

Thread! Damn autocorrect

Sounds great in theory, but if everyone did that who would teach your kids, empty your bins, sell your groceries etc.?

Maybe they have no choice? It might be a necessity to facilitate caring responsibilities. Maybe they are disabled or no available childcare? Life isn't as simple as you make out. Hope you don't need a zero hours carer to wipe your arse.

MIRAS was introduced when the top rate of tax was 83% and interest rates were around 12-15%. Now the top rate of tax is 47% and interest rates are about half.

Maybe they have no choice? It might be a necessity to facilitate caring responsibilities. Maybe they are disabled or no available childcare? Life isn't as simple as you make out. Hope you don't need a zero hours carer to wipe your arse.*

Also, no amount of hard working is going to help someone who isn't as intelligent at school. Bit not just that, they may have parents who don't encourage learning, never given a book etc. these people have way more hard work to do than those who have successful parents who don't have MH issues and a million other issues that just make life harder for a lot of people.

I think people from stable backgrounds think you just need to make an effort and you too can be rich

You've forgotten national insurance. You actually pay 42% tax!

I thought child benefit was a recognition that it costs us a lot of money to raise the next generation of tax payers

Without those of us making financial sacrifices to have children economies can't sustain themselves

So we should get a benefit in recognition of that

I should think the Uk is one of the few western countries that does not offer child benefit for all or a tax concession for raising children.

The highest rate of tax may be 47% but I had a marginal rate of tax of 69% between the child benefit tax charge range of £50-£60k and in a single earner household.

Child benefit was originally designed to lift children from poverty and give non working mothers a degree of financial independence. It used not to be payable for the first child. I personally think the threshold should be higher for single parents but the practicalities of administering that would be horrendous.

Without those of us making financial sacrifices to have children economies can't sustain themselves

Too late for that now!