To think getting less than 50% of your pay is crazy?

[rampe]

If someone earns £15,000 a month. They have a student loan. They pay in 10% into their pension.
They take home less than £7,000 a month.

yes that’s why people try and keep themselves going into next tax bracket ! Earning more money isn’t always worth it 🤣

The higher earners may use private education, and have private medical insurance, but that doesn't mean that they are not relying on the general public being educated, fit and well.

A higher earner may have been educated privately, but it's very doubtful that everyone they need to earn has also been privately educated.

It's an absolute fallacy that people who don't directly use some services don't get indirect benefit from them.

Again with the welfare state, a higher earner may never need to use that safety net, but it is there in case they ever do. People's circumstances do change.

Society would be far worse if there wasn't a safety net to stop people starving and freezing to death.

If people are feeling peeved, then it's their misunderstanding and lack of knowledge that's causing it.

Are you on PAYE?

we tax higher earners on PAYE here quite high compared to other similar countries. It’s the middle earners who tax less on…

Then why do people keep starting these goady threads?

'You're just jealous' has been the constant refrain on daily threads about VAT on private education, rich pensioners moaning about losing the WFA and threads complaining how much high earners are taking home after tax.

It's not jealousy but just exasperation about how tone deaf some of these threads are when some people are struggling to heat their homes and feed their children.

OP, £15,000 per month is an annual salary of £180,000.

How many people earning that much money still have a student loan to pay off? By my calculations, on that salary you'd be paying off over £1000 per month in student loan, which means that even if you still had £60,000 outstanding (which seems incredibly unlikely given that no one's starting salary is £180,000) you'd pay the whole lot off in five years.

There are valid arguments to be made about the effective marginal tax rate for someone who is a higher rate taxpayer and has student loan to pay off. But my sympathies are with the people who will be paying off many times what they borrowed over 30 or 40 years, not the exceptionally high earners who will pay it off super quickly before the compound interest really has a chance to fuck them over.

I overpaid massively to clear the debt.

I dropped out. I'm still in the higher rate of tax. A degree is neither essential for, nor a guarantee of a high income. It helps, that's all.

We don’t even have £7k a month joint income. I find it hard to feel sorry for someone on £15k a month.

So higher tax payers should be exempt from repaying their student loan? But low earners on the standard 20% tax rate do need to repay their loans?

I'd like to see any government getting that through parliament. It does sound like one of Liz Truss's bright ideas though.

There are valid arguments to be made about the effective marginal tax rate for someone who is a higher rate taxpayer and has student loan to pay off. But my sympathies are with the people who will be paying off many times what they borrowed over 30 or 40 years, not the exceptionally high earners who will pay it off super quickly before the compound interest really has a chance to fuck them over.

Correct.

It is the middle earners who are utterly screwed by the way the student 'loans' are rigged. Not the lower earners or the ultra high earners. Martin Lewis has done a calculation on this.

FFS. 🙄

Do you live on your own private island? Do you have your own private police force?

Can you explain this? How are people being taxed more than 100%. Paying for ridiculous train fares is down to privatisation of the railways which hasn't made them more efficient but has made them much more expensive as we're paying for shareholder premiums - and I'm guessing you would have voted for more privatisation.

Quasi tax is not a thing. High costs of housing or childcare is not funding public services. So it is not a tax. If you wanted lower housing costs then you would be lobbying for high taxes on foreign-ownership of huge swathes of London property which is left empty. Or more money put into affordable housing. But I'm guessing you wouldn't be voting for that either.

Getting less than 82 quid a week (less than £355 a month when averaged out) as an 24/7 unpaid carer is also crazy. I feel your pain.

10% into pension is still their money! And will be of great benefit...so that's nothing to moan about, and it's disingenuous to add that into the outrage over deductions.

OP, what IS the point you're trying to make, exactly?

I find it hard to be sympathetic tbh. The only certainties in life are death and taxes. Welcome to the world of adulthood.

Cynicism aside, what do you actually expect to happen.

Not true. There are no private A&E departments. If a routine operation goes wrong in a private hospital, the patient is shipped back into the NHS.

Presumably because for the employed pensions are "taken off" without the ability anymore to opt out, not to mention the employers contribution which is syphoned off into the scheme.

Thankfully I'm self employed so don't play that game.

No one earning £15k a month is on PAYE...

If you know of someone tell them to get an accountant.

I don’t have an issue with higher rate tax but I do think the loss of personal tax free allowance is unfair. I know so many people who earn close to that level but then cut back their hours so they don’t go over £100k or whatever it is - NHS consultants for example. It doesn’t necessarily benefit the economy.

In that situation, and especially with interest rates how they are at the moment, it would make more sense to spend 2-3 months paying off student loan in full and putting less into their pension over the same time period.

@thepariscrimefiles Basic rate taxpayers won't even come close to repaying their loans unless they become higher rate taxpayers fairly early on.

If your gross salary is £50k (which I think is just under the higher rate tax threshold these days) and you're on repayment plan 2 (i.e. you started university post 2012 and paid 9k a year tuition fees), you're repaying £170 a month towards your student loan. This is essentially pissing into the wind. When you factor in the size of your initial loan and the compound interest, if you paid off £170 a month for 30 years you'd never pay off the full amount. And that's assuming you earned £50,000 a year for 30 years.

No, the people who will pay the most for their education are those who repay the full amount of what they borrowed (or close to the full amount) but over the longest period of time. These people are the same people who are getting stung absolutely everywhere else. So they earn too much to be able to claim child benefit, they're probably not getting any free nursery hours either, and yet they will be paying off their student loans until they retire. For those people it is essentially a graduate tax on their education, only they had to pay a fuck load more tax than the people who went on to earn £180,000 per year.

Plus there are no private medical schools in the UK. It costs about £250,000 to train a medical student.

I would be annoyed at losing half my income to deductions but if the rich don’t pay tax, then who will? The poor can’t afford to.