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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

There’s NO point earning over £50k?!

735 replies

ThisReallyDoesntAddUp · 02/03/2024 21:04

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!

OP posts:
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justasking111 · 02/03/2024 23:27

ThisReallyDoesntAddUp · 02/03/2024 22:35

Don’t worry, I’m well aware. My husband works for just over minimum wage and he works very hard.

I got lucky with the industry I went into as it’s generally well paid, but on the other hand I have had to work hard to get to the position I’m in.

It doesn’t change the point I’ve raised with my OP 🤷‍♀️

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Can you transfer family allowance to your partner?

Pay more into pension a good idea.

This crazy expensive time with children will ease up a bit in a few years

Pludoniyum · 02/03/2024 23:28

With bonus DH earns around 180k before tax. I certainly don't feel we'd be better off if he earned 50k 🤔

Got2getout · 02/03/2024 23:30

Mumsanetta · 02/03/2024 23:07

In many cases, earnings are directly linked to work ethic. There would have to be a heck of a lot of single mothers, people with disabilities and carers for them to be the rule rather than the exception. I am very open to reading any evidence that indicates otherwise.

I would hope that the single mother, person with a disability or carer would be grateful that those people who do work hard and earn a lot of money pay tax to support them. It makes absolutely no sense to tell the taxpayers supporting them that they should be grateful and are not entitled to complain about an unfair system.

And for every single mother, person with a disability or carer, there is someone who happily sits on their arse and does nothing to advance their careers.

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But earnings aren’t always linked to work ethic; they’re linked to how profitable your labour is. Bankers don’t have a better work ethic than fire fighters, but they get paid more. Because banking makes money, and public services don’t.

Not everyone can earn at a higher rate; because if they did then the price of labour would make everything so expensive that it wouldn’t be considered a higher rate anymore.

BIossomtoes · 02/03/2024 23:31

Primrosecottagelover · 02/03/2024 23:14

Can’t believe the comments on here about privilege.

Why should she work more time and spend more time away from her babies if there’s no financial incentive.

Because those three babies are going to need educating and provided with healthcare. The people who really have my sympathy in terms of taxation are healthy high earners who don’t have kids. They pay a lot in and get very little back.

Miyagi99 · 02/03/2024 23:36

Exasperateddonut · 02/03/2024 21:15

Not really. High earners pay WAY more tax at every turn. They spend more - more VAT. They employ more services - paying NI and tax. They don’t use public services - schools/medical care.

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High earners don’t use public services?! Are you sure about that?

Original poster
ThisReallyDoesntAddUp · 02/03/2024 23:36

Pludoniyum · 02/03/2024 23:28

With bonus DH earns around 180k before tax. I certainly don't feel we'd be better off if he earned 50k 🤔

After tax, you and your husband will have circa 100k, which I completely agree is worth earning more than 50k.

However, I’m in the position where at this stage of my career/family life there is negligible difference financially between me working full time vs. three days a week due to the tax & child benefit brackets 🤷‍♀️

OP posts:
TheMoth · 02/03/2024 23:37

Jesus fucking christ. Have you any idea how lucky you are? I'm a long time teacher with responsibility. I earn just over 50k. Yes, OK, I lose whatever in tax. I'm also the main earner by a country mile. But I am lucky. Really fucking lucky that I had the ability and supportive parents and lack of trauma to be able to get to the point I'm at. So what, I pay more tax? I have a much better life than so many other people. Than so many of the kids I teach. I have enough. Why the fuck should I begrudge other people?

And yes, I work hard for my money. But honestly? The hardest I ever worked was in the first 10 years of my career. For which I earned a lot less.

bombastix · 02/03/2024 23:38

God the husband earned it! Give over with women claiming on what her husband earns. It's not 1950. The OP started out talking about she was affected in terms of her earnings.

Cherryon · 02/03/2024 23:39

Scarletttulips · 02/03/2024 22:13

Poor people work hard to

Yes they do, but the benefits they receive are paid for by the higher earners.

I work 35 hours and paid £28,000

DF on benefits works 16 hours a week and gets £3,000 a month so £36,000 in her pocket every year.

Fair? I don’t think so - especially as her three kids get free music lessons, free school meals, extra tuition, trips for nothing -

Dont talk about fair - it’s isn’t

No, the benefits poor people receive are often paid for out of the NIC they paid in- many benefits are contribution based on what you have paid in.

Business and employers pay in NIC as well which funds out of work or furlough or low pay benefits as well for poor people.

In addition, poor people also pay taxes that then fund their benefits when they fall below the threshold.

Most of what high earners pay in taxes goes toward public services which they benefit from as much as any poor person- pensions for the elderly, NHS, police, fire service, roads/infrastructure, schools, utilities, transport, etc.

rainbowunicorn · 02/03/2024 23:39

Tryingtokeepgoing · 02/03/2024 21:42

Tax might go up from 20% to 40% over £50k but at least NI goes down from 10% to 2% at the same point. So you’re actually going from 30% to 42%, not 20% to 40%. And it could be worse - you could be in Scotland where income tax is 42% over £50k and 45% over £75k…and the schools and NHs there are in an even worse state than here!

Scotland is actually 42% on incomes over £43,660 ish so even worse.

missydem · 02/03/2024 23:40

Primrosecottagelover · 02/03/2024 23:20

Are you mad ? People with wealth have family trusts, companies, money overseas, assets at a “loss” and astute accountants working this all out. They are winning.

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Thats exactly my point...... if you own assets and earn capital gains, you pay less tax ( even before tax avoidance activities you have described). So we agree the wealthy proportionally pay significantly less tax than those paying income tax ( at any level)

And if you earn a salary, you pay more tax with fewer options for tax avoidance ( which i am not advocating)

As several others have pointed out, the asset owning class are laughing all the way to the bank, whilst the rest of us fight over scraps... someone paying 60-70% marginal tax is earning pennies in comparison to someone like Sunak (his PM salary is a tiny proportion of his total earnings)

SevenSeasOfRhye · 02/03/2024 23:40

Pludoniyum · 02/03/2024 23:28

With bonus DH earns around 180k before tax. I certainly don't feel we'd be better off if he earned 50k 🤔

He's well over the £100k cliff edge, so of course you're better off.

Cherryon · 02/03/2024 23:41

Gumbear · 02/03/2024 22:42

Agree. Also the tax paid by higher earners goes to fund benefits and tax credits for lower earners.

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Not really. This is a divide and conquer myth to set high earners over low earners. High earners are not paying for low earners.

Ottersmith · 02/03/2024 23:42

Yes it seems like you are in a good enough position to go part time and look after your kids. I don't think anyone ever regrets getting more time with their kids.

rainbowunicorn · 02/03/2024 23:43

missmollygreen · 02/03/2024 21:10

My heart bleeds

Oh grow up for goodness sake. It's not a race to the bottom.
Mumsnet is terrible for this. Every time someone earning more than about £30,000 tries to post they get shut down by idiots saying stupid things like this. I have never seen this on other forums. It seems like mumsnet is full bitter people that are not capable of adult discussion. Why even click on the thread if that's your only contribution. You just make yourself look stupid.

Cherryon · 02/03/2024 23:43

Mumsanetta · 02/03/2024 22:47

Either work harder or say thank you to those that do and manage to pay more in tax than you earn. That’s not a very nice thing for me to say but it’s about as nice as your post.

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Low earners don’t owe any gratitude to high earners 🙄
That sort of attitude has a name- classism.

Peekaboobo · 02/03/2024 23:44

OP YANBU but unsurprisingly you are getting a bashing from the same old same old brigade.

I just assume that people in your predicament pay more into their pensions. Yes, I know you could use it now while the kids are small and it's annoying but it's better than not having it at all because you used it to pay tax.

Got2getout · 02/03/2024 23:47

rainydays03 · 02/03/2024 23:23

Why are you bashing OP for having a good career? You don’t know how many years of studies she put in to ensure she secured herself
a good job - I don’t think that’s for you to take that away from her?

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I’m not bashing OP for having a good career; I’m disagreeing with the idea that there is “no point in earning over £50k”. I think it’s absolutely fine for OP to have a well paid job. I think it is silly to think that there is no benefit to having such a salary.

TheMoth · 02/03/2024 23:47

Now I can see why people keep voting Conservative.

Seriously, what's the big issue with paying tax, if it helps other people? So much of what we earn is down to sheer luck.

Cherryon · 02/03/2024 23:48

missydem · 02/03/2024 23:40

Thats exactly my point...... if you own assets and earn capital gains, you pay less tax ( even before tax avoidance activities you have described). So we agree the wealthy proportionally pay significantly less tax than those paying income tax ( at any level)

And if you earn a salary, you pay more tax with fewer options for tax avoidance ( which i am not advocating)

As several others have pointed out, the asset owning class are laughing all the way to the bank, whilst the rest of us fight over scraps... someone paying 60-70% marginal tax is earning pennies in comparison to someone like Sunak (his PM salary is a tiny proportion of his total earnings)

Show quote history

Exactly right. And it is the asset owning class that has convinced higher earners that they are paying for lower earners who don’t work as hard as they do. So long as those who have to earn an income to live scrap amongst each other, they can keep on paying the least tax while being the 1% most wealthy.

Picklestop · 02/03/2024 23:50

Best ask for a pay cut then.

🙄

VampireWeekday · 02/03/2024 23:51

LucyLaundry · 02/03/2024 21:28

Well you could...

Get a better paid job

Have less children

Move to a cheaper area

Live in a smaller house

These are all things those on lower incomes have to do, why don't those on higher believe they might also need to cut their cloth? Clearly you spend too much compared to what you earn. I don't overly understand how you're struggling but I accept that you think you are.

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She should "have less children"? How is she going to choose which one to put up for adoption, I wonder.

Peaceandquietandacuppa · 02/03/2024 23:52

It’s crazy isn’t it. YANBU

underthebun · 02/03/2024 23:53

child benefit should be universal

underthebun · 02/03/2024 23:54

there is far too much discrepancy & burden on PAYE vs other taxes