To reduce hours when labour win election

[Parttimeplay]

I fall into the “60%” tax bracket. With the upcoming elections and knowing the government always hammer the middle ground….woudlnt it make more sense for me to cut my hours for a more relaxed life, eligibility for childcare, reduced tax?

@GreenTeaLikesMe I’m not sure why you are questioning whether or not I can afford school fees but I assure you I can. I say grimy as I moved to london In the past few years and this was my mortgage affordability at the time.

It’s you that said you hadn’t planned on paying £2k a month on nursery fees 🤷‍♀️

So you’re saying you feel your life is shit now? That’s all under the Tory government. They’ve been in power for the last 13 years. All this has happened under their watch. You are where you are because of their policies, not Labour policies.

You can reduce your hours whenever you want. I’m not sure why you feel the need to wait for a change in government.

Yes because you asked me my plan 20 years ago and I stated I hadn’t forseen the higher than inflation (your post) increase in fees

@BananaLambo no not saying it’s shit now. My life has changed over past 13 years. Just saying it’s a sad state of affairs when I feel there’s little motivation as little to be gained past earning 100k

What has all this got to do with a labour government?

The policies they plan to implement

It’s a 5% tax increase overall. When I started working highest band was 83% and lowest band was 33%

These are Tory policies that you’re complaining about though

It’s not just the increased tax, it’s loss of benefits as well. Sub 100 l I am entitled to tax free childcare.
vat on private schools is not a Tory policy

@Zonder they have form, and I don’t think the clawback from private school fees and non doms will cut it do you?

@HumanRightsAreHumanRights i emigrated last year - best thing we could have ever done.

so that would indicate you started working in the mid seventies? When pensions were generous, single income households the norm, house prices achievable. …

You hadn’t mentioned private schooling in that post, jyst housing and nursery

you want benefits earning over £100k, wouldn’t lower cost nursery places for everyone be a better option? Those on £35k paying the same £2k nursery fees are probably wanting lower fees as well

1981

Don't bother. It's not worth it and it just breeds resentment. I worked out I'd need to earn £127k to be better off than I would be on £99k so I cut my hours and am so much happier.

No i don’t want benefits i was just saying you’re not taking that into account when you say 5% tax.
yes I want lower nursery costs for everyone, as I said previously I think they are a prohibitive barrier for women to return to work. Why would you pay 2k fees and return to work for a 35 k salary

Why would you pay 2k fees and return to work for a 35 k salary

because you want to continue with your career & having a break is detrimental

@MikeRafone I disagree that it’s detrimental and that’s an outdated view. I would also think at that salary level a break will not be career altering

Pay that 62% chunk into your pension for as long as you can, until they start attacking that. Your older self will be glad you did.

That’s your opinion, but it’s a reality for someone I know. Tbh her nursery fees were around £1400pm

£35k is a U.K. average wage, that doesn’t dismiss a career

wages have stagnated and are very low, not just under this government either. In real terms wages should be considerably higher and if it was done on house prices then average should be around £55k

@MikeRafone yes 35 k average wage but I don’t think 2k a month for nursery is average so we can’t compare apples with oranges

@MikeRafone also at 35k you are entitled to child benefit, tax free child care etc etc

I too am worried about the general direction that Labour might head in, even though I’ve no plans to vote conservative.

My worry is that Labour will try to implement too many populist policies without looking at their cumulative effects, hence more and more people will find themselves in positions like the OP, then they will react accordingly.

OP I think you have two options:

1. as mentioned above, manage your tax liability using other factors like pension contributions. The only thing to be aware of here is that I do think there’s an argument for everyone to have flat rate pensions tax relief at 20%, at the moment higher earners get tax relief at 40% or their marginal rate… meaning if you’re a high earner the govt pays £4000 for every £10000 you save, and you pay £6000. If you’re a basic rate tax payer, you pay £8000 and they pay £2000. Quite easy to see why that’s unfair as most people won’t pay the 40% back when they take it as income in later life, they’ll keep their income in the 20% bracket so effectively 20% of their saving will be free money. You should expect this to change:
2. Reduce your hours. Explain to your employer why you’re doing it and that you’re not prepared to essentially work for free for the time that the difference represents. I don’t think you’ll regret it… enjoy some time with your kids whilst they are little and you can do.

Overall even as a floating voter I am worried that the cumulative effect of Labour policies, failure of the Tories to reverse some of the “squeezed middle” policies like this, cut in real terms pay for doctors and highly qualified public sector workers and growing social divides will result in a brain drain from the country as more bright students and mobile professionals move abroad, or people reduce hours / leave the labour market altogher as tbh it just won’t pay to work for many people anymore.

child Benefit is £25.60 per week
20% off child care would equate to £280 pm
total of £4, 691

what is your point?

Sounds like you may have other reasons to reduce hours, but if your concern is about the 60% tax trap, you can easily circumvent that without impacting your career progression options, by asking your employer to pay all of your income above £100k into your pension.

If you live in London, and you're in the £100k-£125k salary bracket, then like other PP I'd also question whether you can afford private education, unless your partner earns a lot or you have financial help from family. I am in the same income bracket as you, I don't live in London, and I wouldn't be able to afford private education on my own.