Anyone else lost a bit of ambition now they’ve been taxed to the brink?

[Peasontoastt]

I used to be extremely ambitious and was really eager to reach some sort of financial security. As a consequence, I’m in what’s considered a highly paid career, I work hard and it took me many years to train.

Just as I paid off my student loan (which took many years), I then had a baby and returned to work to be stuck with the childcare dilemma. I struggled through that phase and have come out the other side but being taxed so much, no child benefit, still paying for nursery even though dd has ‘free’ hours now. It’s likely that savings are going to be bashed next, so what’s the point in even putting anything aside when there’s likely going to be a 4K cap on ISAs.

I used to feel so ambitious and of course I know money isn’t everything, not by a long shot. But having worked my way up the ladder and with huge responsibilities only to feel penalised financially for doing so…what is the point? Yes I have more financial security than someone claiming benefits but equally, I am not being flippant when I say a few years of resting and being at home and being frugal is starting to seem so much more attractive. Has anyone else started feeling this way? I feel taken the piss out of by every financial angle!

Do you have a link that supports your assertion?

Out of those 24 million people not paying income tax, how many are receiving an old age pension from the state?

I'd wager it's a larger percentage

The high earners are contributing. The people on benefits are not.

Interesting. Although there’s a pledge for no tax rises.

They have attempted cuts but not popular

hahahahahahaha.

The high earners could be on someone on benefits in the time it gets to be hit by a bus or have a stroke.

And how many people aged 16-67 don't pay income tax?

Funny enough I did a little data dive and the amount of people in the UK either under age 14 or over age 65 was exactly 24 million in 2023: https://www.statista.com/statistics/734726/uk-population-by-age-group/

Also... You do realise that most very wealthy people don't pay income tax because they either know how to avoid it or simply do not work in a PAYE situation?

People that are on the PAYE system are people who usually need to work to make ends meet as no other significant income, e.g. pension/ savings.

And yes fair enough you will have an economically inactive less well off group, or people who work but don't earn enough to pay income tax. That's not a particularly enviable lifestyle and I'm not sure they can afford to pay income tax, maybe we should go after people with bigger wallets first...

Hi OP, I'm in a similar position and it is disheartening. I can't even complain because I am lucky and have no right to complain how people in my exact same position years ago would be so much more financially better off and secure. Running to stand still...
What exactly is our tax being used for. So much waste. Why are public services for profit?? Care homes, foster agencies, our water companies, the list goes on.

I was reading today about how hundred of properties used by the NHS has been bought by Private Equity. So now UK taxpayers money is being used to fund American firms inflated profits.

All this focus on illegal immigration when the numbers of legal migration are considerably higher. Why do we need overseas workers to fill British jobs. Is it really that hard to fill vacant roles in this country.

Anyway I digress but overall I do agree with you.

People in my organisation a decade or so older and above will be retiring on amazing pensions, share options with significant value and mortgages paid off. I have worked just as hard and will never have any of this.

But like I said, you can't complain because so many people have it much worse.

People in my organisation a decade or so older and above will be retiring on amazing pensions, share options with significant value and mortgages paid off. I have worked just as hard and will never have any of this.

I think the huge intergenerational inequality is another reason why people are pissed off.

Interesting post, thank you! Which country are you based in out of curiosity?

Hard for everyone. Those earning the lowest can’t afford a home and everything that goes with it on a single wage and aren’t allowed to save up to better themselves (UC rules), while those earning a decent amount are taxed a lot at a fairly low point so they end up on not much more take home than the lower paid. The drop off points are still a problem.

A single full time wage on minimum wage should be able to allow someone to afford the basics of a home, covering bills, feeding themselves and a two week holiday in UK. Given the cost of living now the higher tax bands should shift accordingly so the middle earners are managing and still feeling a reason to progress.

They should be admired for the money they transfer to the lower paid.

Why thank you 🙄

OP, the people who think you are unreasonable clearly are no where near the higher rate tax band.
I wholeheartedly agree with you, it’s not even worth going for a promotion and working full time in my current role as the tax will mean I earn about the same but have more responsibilities

Hahaha what a weird perspective 😂

Yeah, you say that. Point is though that those earning £100k+ would and could contribute more if the tax levels were more equitable. I work with 100s of people who earn around this mark. It’s a cliff edge for them. No childcare allowance, higher tax bracket. It’s better for them to put extra in their pension so their taxable salary remains below £100k.

The tax brackets is a real issue that the current government need to sort out now. It’s stayed stagnant too long at the Low end. The way things are going pensioners receiving only a state pension will be required to pay tax soon!

the basic rate needs to move up to probably £18k so more who are working part time start to pay income tax. Then the middle rate can be moved, then the top rate.

we also seriously have to look at why UC is having to top up the salaries of those on minimum wage. Why?? Why aren’t companies paying a wage that mean their employees can enjoy a decent standard of living? Does this issue crop up in other countries?

also, why are private rents so high and why do councils fund this in housing benefit? What would happen if the gov or councils said, well actually your property is worth x amount in rent per month and that’s all we’re paying? Or is that what happens now and people pay the extra off their benefits? If so, that’s really shit as surely benefits are at the lowest level a person or family is meant to survive on.

They have to do it. What's admirable about that?

The average wage being under 40K doesn't mean that it's a 'privilege' to earn 100K! It's not just handed to you ffs!

People in 100K+ jobs almost universally didn't get them by accident. Education, experience, years of toil, sacrifice and excellence in their field just to get there, coupled with the massive responsibilities, weight of expectations, time away from loved ones, navigating politics and competition to stay there.

And guess what? I don't put myself through all that for nothing. I have a nice home, nice car, nice holidays, nice clothes, a healthy pension. They're my baseline and I've busted my arse for years to get them.

So when I earn more than I did 10 years ago, but my quality of life is slightly worse, largely because the government are taking £50,000 a year off me in income tax alone, while public services crumble...do you think I feel privileged?

Or is that what happens now and people pay the extra off their benefits? If so, that’s really shit as surely benefits are at the lowest level a person or family is meant to survive on

That is indeed what happens now. Very basically for private renters each area is assigned an allowance rate. To calculate what claimants get, they compare that to the actual rent for their property and take the lower amount as their 'eligible rent'. The allowance rate is almost always lower, surprise, surprise.

They then look at your income, make deductions based on a few things (the most basic amount you need to live on, etc) and subtract that from your eligible rent. The difference is what you get in housing benefit.

It is, as you say, really shit, and often leads to people being evicted, displaced or worse because benefits won't cover anything in their area.

I lost ambition when I realised that family time and work life balance is more important.
I took flexible working and just earn enough to cover bills and save a little.
The downside for the economy is that I pay less tax, I was actually surprised at how little of my wage I lost due to less tax.
More and more people are reducing hours because we can now, with legislation making it easier. I wonder how much this affects the economy, but I am happier and life is less stressful.
I don't claim any benefits as I earn enough to not have to, but I am glad that safety net is there if needed.

Patronising some what - I feel higher tax payers are beginning to question the return on their tax contributions - every service in this country is fucked!
75% of the tax income in the uk is generated by 25% of earners over £47,000 - continue to ignore that demographic then this country will head for continued economic decline and the under performing demographic are going to start to feel the consequences of a tightening government budget as is the case now.

In economic active areas where employment is more likely - no point buildiing where there aren't job opportunities - there’s no confidence from outside investment in a Marxist Ideological government. Especially one where the chancellor breaks down in the commons. I sympathise but that was a massive faux paux - she should of ducked out - the stress signals she displayed were of the chart. Sorry I digress - if you have worked your but off and made all
the right moves to provide for your chosen life style no one can tell me how I should feel about the tax I pay.

@HeddaGarbledMade it up? Where did you pull that from.

you were never actually on the subject to digress

No, she said go on benefits that means having to spend 30-35 hours a week looking for work once your child turns 3. Getting sanctioned if you or your children are too ill for you to attend an appointment more than 3 times, ever or if life got in the way of your work search... Having to top up your rent out of the £400 a month they give you for food, bills and council tax, which is reduced but not fully covered. Sound fun?