October budget going to be painful

[increasinglyconcerned]

Here we go..... I knew it. Labour were promising not to hike our taxes in the election campaign and here we are.... apparently they discovered £22 billion black hole in his first weeks in the role and it's not his fault.

Let me guess, those of us who earn six figures and already pay 45% will pay EVEN more and take home even less. It's the hard workers who will take the brunt. What's the point in working anymore!

I earn a little over £120k and I'm taxed the same as those earrings £500k.

Before people jump in saying they don't feel sorry for me, I work full time to support my family, as of January I will have 2 DCs in nursery, plus my mortgage and get ZERO free hours childcare, whilst they keep promising free childcare but I just pay more for everyone else to benefit.

I cannot afford to pay more taxes to fix this country and especially when so many people are getting a free ride and not paying their way, ranging from millionaires with tax havens to those claiming benefits dishonestly.

The monthly take home pay is approximately 6340.-
The national average is approximately 2440.-

A lot of people go to work and are just earning enough to pay for nursery for a few years. But they choose to stay in work because they know it's for a short time. Same for higher earners.

It will be less than £6340 after pension and a lot less after student loans which it's likely a person earning £120k will have. I was early 30s with 2 young children and paying hundreds back in student loans.

You didn't answer the question though. With a £4k childcare bill, and then a mortgage/rent, food, bills, transport etc, it's unlikely there will be much left over to pay extra tax. Someone earning less would get help with childcare and depending on their income, with other things too. They absolutely should get help but so should anyone with a £4k childcare bill when what is left doesn't cover basic bills.

Childcare costs need addressing for everyone. My kids are older so this doesn't impact me at all now but I can still see it's not right. Living on less than £2k ( after pension and student loans) to cover mortgage/rent which the average is around £1200-1400 ish, food, bills, transport, nappies, clothes etc is hard. It doesn't matter what you earn, if that's what you're left with to pay those costs, it's bad.

The £4k childcare bill is a choice. That is expensive childcare even for London. And presumably they have two substantial wages coming in, otherwise one would be a SAHP.

OP is wealthy.

Not while she has a £4k childcare bill to pay she isn't.

She will be once the child care bill decreases or is gone completely.

The £4k childcare bill is a choice. That is expensive childcare even for London. And presumably they have two substantial wages coming in, otherwise one would be a SAHP.

A choice? Her children need care. Maybe she should leave them on their own and see how they go?

Has OP said she has a partner? If she does, why would one be a SAHP? Why would one disadvantage themselves at work? If either of us would have taken 5 years off to raise kids, we'd never have got our careers back.

My friend pays £4k for twins, it's very much the norm in London where she lives unfortunately.

Actually she could have got a slightly cheaper one but the opening hours didn't fit with her job.

I’m not suggesting it’s easy, I’m just suggesting it’s essentially impossible for someone with no formal training or higher education.

everyone who despises people who claim benefits has a story like yours, I don’t buy them. Given that you probably know very little about a person’s circumstances you can’t make the claims you’re making. If you think it’s that easy and you to want a 200k council house - quit your job and claim it, you won’t tho because if you’re honest with yourself you know it’s not that easy and you are in fact better off working 😅

@SoundsBetterTogether My point is that there will be more income coming into the household than OPs wage. So no OP is not left with £2k after childcare. The childcare costs are shared.
And £4k is expensive childcare.

Why do conspiracy theorists spell so badly? It is always the case!

My point is that there will be more income coming into the household than OPs wage. So no OP is not left with £2k after childcare. The childcare costs are shared.
And £4k is expensive childcare.

If OP has a partner, yes. But my friends partner is too ill to work (or look after his children) at the moment and is in the same situation so yes, there are people left with less than £2k after childcare.
And £4k, just under is normal where she is in London.

@Zl11

There is also a large number who have more income than this but take a small salary and pay themselves in dividends to avoid paying a large amount of tax. I hope it is this group that the govt targets.

You're behind the times. Personal dividend taxes have been in force for several years now so the previous tax benefit of dividends (thanks to Gordon Brown ironically) have been eroded and there's no longer much difference.

@taxguru correct. thats why husband left work and is now not adding any revenue to the country - wasnt it called IR35. the more you tax people the more they will find loopholes not to pay massive tax amounts

Also, even if your anecdote about the welfare state is true - why should lower earners suffer?

I work closely with TAs (to use your example) and the work just as hard as me (honestly probably harder). I will always earn more, and have the opportunity to keep increasing my salary because I was in a fortunate position to qualify in my field. I could only do that because my personal circumstances (e.g. having supportive parents etc.) allowed this to happen.

I will happily pay more tax - because I understand it’s in my own best interest but even if it wasn’t, I would still be happy to because if it makes the lives of hard working (albeit low earning) people easier. I couldn’t do my job without TAs - the entire system would crumble so of course we can’t afford to lose people that commit themselves to these careers and higher earners paying tax essentially subsidises the fact that society doesn’t value them enough to pay them a fair, reflective wage.

of course we could pay them more… but given that most of these low paying jobs are in the public sector how will we do that?? with our taxes perhaps 😂😂

There are a lot of bitter jealous comments on here.

Appalling, get out there and maximise right now.😥

That may be the case but the wealthiest people in this country are not on PAYE. PAYE is a very poor way of gauging wealth.

This aged well.

Are they going to raise income tax, national insurance, or VAT?

Please could you link to this advance copy of the budget you've miraculously obtained?

And they haven’t yet. Stop assuming they will until and unless they do.

As we’ve “already ascertained, high income doesn’t equal harder work” why don’t all of those with low income just swap their jobs for high income ones? It no harder work as you’ve stated so why stay on MW plus benefits ….just get a better paid job. The six figure salary jobs are a doddle. Anyone can apparently do them. Problem solved!.

I think people would be less hateful of paying taxes if we had more involvement in where they were spent . We don't see any benefits anywhere , education, nhs all broken .

OP, have you thought about the expat life? Are your/your husbands skills transferable or in demand elsewhere in the world?

It doesn't need to be emigration for life (though some get the bug and never return) but a few years on an expat package in a place where childcare is more affordable and or better subsidized can be life changing in terms of securing your future. It would also mean you would be able to sit out the worst of the tax rises here (and/or have other costs like housing paid for) so it's easy to be ok with what HMRC take. We ensured we were tax equalized in our package so local taxes did cost us more than being in the UK. We rented out our UK house and had overseas rent and childcare/school fees paid for.

I get where you are coming from OP. For me to get to my 6 figure salary I studied to postgrad level, got into debt that took me until my early 30s to clear, relocated to a city where I knew nobody to take up a lucrative graduate placement and during my 20s worked insane hours, many all nighters and weekends, so many plans cancelled. And my marginal tax rate is now 62% unless I work around with my pension.

*did not cost us more

It does not say Labour will not raise income tax, VAT or NI on working people.

it doesn’t say labour will not raise some taxes on working people.

It says that they won’t raise taxes on working people.

Are really going to try to argue that it means something else now? Wow!

Yep the tax burden is going to be even higher

I'm going to assume you're being sarcastic, I simply won't believe you are as ignorant as this makes you seem.