To lack motivation to earn over 50k (self-employed)

[GinnyPiggie]

Just that really: as a self-employed person, I put aside 30% of all my invoices up to 50k, but after that having to put aside 50% feels like a lot of work for not quite enough reward!

Frankly I get really demotivated and lazy at that point each year and basically give up. Is anyone like this?!

I think there’s a very strong argument that the higher rates of tax kick in too early.

Daily there are posts here from people realising how little extra they earn once they’re been taxed at 40% / because of their student loan repayments / loss of child benefit / loss of childcare hours etc.

Theres really quite a lot of people in the UK with marginal rates of 50-100% and I’m not remotely surprised if many of them feel as you do.

It's tricky because I work REALLY HARD to earn 1k and I know it sounds a lot to some clients: but I only 'see' £500 of it, so it seems like too much effort!

Agree OP.

Currently considering going part time because after nursery and tax, I only see 10pc what I earn on the 5th day. Might as well be at home with my daughter instead...

Agree, I cap my earnings at 50k. The extra you get taxed is insane, might as well take time off!

Part of the joy of freelance for me was determining how much I wanted to earn (basic living + indulgences + pension + savings) then basically stopping working each month once I'd hit that. If 50k is sufficient, embrace the flexibility and free time.

This is exactly how I feel. I am currently planning just to chill out until April and then start again. Bit daft I know.

Yep, work to live and enjoy the free time!

Put the extra in to your pension and enjoy the top up from HMRC.

YANBU. And look at the 100k cliff edge and it's even worse! There you lose personal allowance and have a 40% income tax so the gov deduction on 100k to £125k are 60% And on top of that you lose any free child care hours. Madness.

I was actually looking for a a graph of take home pay vs income which shows deductions for a sole earner which is here: https://blog.thesalarycalculator.co.uk/paye/tax/visualisation-of-salary-deductions/

It'd be really interesting to see another version with an overlay of child benefit and free childcare hours in the mix. I couldn't find one, but it isn't pretty at the cliff edges.

as someone said - you can put it in your pension and avoid that issue - which long term would probably be very beneficial to you unless you have money from other sources for retirement

I get it. I need to have revenue higher than 50k to cover my business plus personal expenses but beyond that it does seem like I am paying an awful lot to Hmrc in comparison to what I get to keep and enjoy. I get pickier about what work I will take over that point.

Yes, I do put anything over 50k into my pension. It's quite hard to be motivated through to work JUST to put it into my pension!

Thanks for all your responses, I'm glad it's not just me! I do get the arguments for earning more, particularly for the pension, but I just can't be motivated to strive for it!