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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Where is the incentive.....

179 replies

LookingforMaryPoppins · 11/01/2025 21:50

Fairly certain I am going to be shot down and 100% appreciate I am in an incredibly fortunate position however.......

My parents are working class, money was short but I never went hungry. I was taught that education was everything and the value of the opportunities it offered. I passed the 11 plus, went to grammar and was the first in my family to go to university.

Fast forward to now and I have a well paid professional job which I (mostly) enjoy. I am now self employed (to give me the flexibility to be there for my youngish children) and have ended up in a situation where I worked far more hours than I would choose due to not wanting to let clients down. This has resulted in a huge tax bill - despite putting a good amount aside, when you hit 100k you start losing your tax free allowance which effectively puts you on the equivalent to higher than the highest bracket. I think it equates to over 60%.
Ive also had the increase in school fees this month - having started off in state school it was very clear there was a total failure to meet needs (youngest daughter is academically bright but dyslexic - this means she "meets expectation" in state provision so gets no help albeit fails to acheive her potential which apparantly is acceptable to the state education system).

Despite the increase in fees, which we will cover by not taking a family holiday, I have now chosen to reduce my hours to keep my income below £100k. This is at least a £20k loss in income tax to the country (less than 12k take home reduction to me), another £6k loss to the country in VAT plus the loss to the economy of the money I have forgone so am not spending.....

I know this country has the mentality of despising anyone doing better than average but surely anyone with any economic sense can see this is a lose lose scenario......

If I didn't have school age children whose education would be detrimentally disrupted I would move to different country!

OP posts:
TheaBrandt · 13/01/2025 12:26

Yes of course they would slap 😀😀 it would no doubt be a privilege to do so!

FinallyHere · 13/01/2025 15:44

@Nollybolly6

We are a single income family and my husband earns £119. Worse off than if he earned £99k.

I'm not sure why the option to use pension contributions to defer your access to your above £100k income is being repeatedly ignored here.

100% pension contributions end up in your pension pot. It's such a win.

Daysnconfuddled · 13/01/2025 16:41

Because families with young children need the cash now not later in the form of a pension.

Sophie717373 · 13/01/2025 18:23

All pension contributions do is move the band of income that is affected.

If you have nursery age children and earn 170k and make the max 60k pension contributions you are worse off than someone in the same position who makes the same pension contribution but earns 155k.

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