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!

That doesn't make it morally better. Same thing.

We pay very similar rates to the developed European countries.

One OP. Another thread about tax and ISAs mentioned.

Low tax? Are you kidding me? If you compare us to the U.S. for example, their salaries are 3-4 times higher and they pay less tax. We are a low salary, high tax country and it’s going to get worse.

What about those in the public sector that get huge employer contributions to their pensions? Do you have a problem with those too, or only people in the private sector who are trying to save for the future so they don’t become a burden on the taxpayer?

But have much higher council tax, utility bills etc. Property is more expensive here compared to the majority of Europe. We have high interest rates on student loans. Fresh food is expensive and so are insurance costs.

I agree with you op.
Absolutely no point in taking on all that stress and punishing regime as you don’t benefit.
I’ve said this on countless threads. We need to reward hard work. Stop giving benefits to those who do not work. You don’t want to work- absolutely fine- but here’s the thing- you do not get free handouts. Those who work get the benefit. I see many, many people who are doing fine and get as much as those who work when all they do is sit on their backside day in day out.
Housing should be prioritised for those who contribute. It should be for working people ( or those who have worked and have reached retiring age.)Everyone else should be at the bottom of the pile. This should apply everywhere in the Uk.
Feckless parents should be made to pay for their children. It that means they pack in work then so be it, but they receive nothing in the way of benefits.
I do not agree that anyone earning under 100k should pay a higher percentage of tax. They already pay more so the percentage should not therefore increase. It disincentivises people to do better.

I said one of the highest in the Western world not the highest. If you look at even globally, all those (except may be Ireland) countries and UK would appear in top 20 countries for overall taxation, there are minor differences in percentages that no doubt do add up but overall what I am saying still stands, we are not a low taxation country and I would say there are no low taxation countries in the Western world, even somewhere like Switzerland. There is just lower taxed countries comparatively. The UAE is an example of a low taxation country for me, not the UK.

I earn just under £70k and am a single parent whose ex contributes nothing due to low income. I have lost child benefit and had to pay back additional tax last year for 3 months as I apparently hadn't paid enough - £200 lump sum plus my tax code adjusted for 3 months which took around £70 each time. That was nothing to do with paying back my child benefit (my pay has only recently reached the level it is now) which was another £1500. I do exam marking (get around £3k for this) and have just had a letter to say my tax code has been adjusted again permanently as I don't pay enough. My kids get the minimal loans for university, which is going to be a struggle. Perhaps I would have been better off t have stayed on around £55k - I don't know.

I don't know about ambition - I'm a bit old and knackered for that anyway- but I'm a bit sick of the fact that I've reached what for me is a great salary, one I always had in my head as the highest I could aim for in my job, yet it seems so much is being clawed back. Two things need to change - the tax thresholds and a different code for single adults/earner supporting a household. I have no problem with paying a decent amount of tax, but now it feels every little thing I do to earn a bit more is pointless.

I've always used my exam marking money to pay for my summer, but looking at the figures above it seems pointless doing it now, though I like getting the lump sum even if it's largely paid back later! This may well be the last year I do it as kids are older all the summer spending money isn't needed, maybe. That's a shame as my subject struggles to get marked in time and has a problem with inexperienced markers. I'm highly accurate and reliable, but I seem to be just giving the money away! Probably an exaggeration, but still...

The government need to alter the tax bands to widen the number of people paying tax. The pool of net contributors is too small. It is unfair on us.

I know people will respond with ‘well we need to focus on the poor’ etc, however, the country cannot survive much longer like this.

A fair chunk of the poor can be working more hours/retraining/paying tax. The strategy can’t just be to keep taking more from the same small group of people.

@MyNameIsAlexDrake I completely agree on this:

”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?”

It’s mad that large companies’ profits are essentially being boosted by taxpayers.

That’s for Labour to resolve. Whilst sticking to a manifesto pledge.

I agree that people absolutely should be able to buy a small house when they work full time. Not so long ago people could buy a house based on 3.25 times their salary. Properties were available. Ok maybe they weren’t in prestige condition but so what? Nowadays the average person can’t find a house in that bracket.

Technically you don’t as once income gets to £100k you start to lose the personal allowance at £1 for every £2 over, so you no longer have that tax free £12k that everyone else gets. It is also a cliff edge for losing tax free childcare I’m not saying this is fair or unfair just stating fact.

I’m a Big 4 director (accountant) on £105k and DH is a retail manager on £55k.

Yes because of the 60% tax rate, on earnings from £100-126k you rise home… £10k.

Next year I have two in nursery and after taxes and benefits I earn £0 between £100-140k.

I know a lot of people working part time as a result.

TBH I think this is part of the problem for people at all income levels now.

Lets use a 35 year old in our example, as they won’t have made a killing on house price growth.

The minimum wage employee can’t afford to rent or buy a one bedroom flat of any variety alone.

The high earner is in a far better position, but the ‘family home’ they expected they’d be able to afford is still 8,10x their income and out of reach.

I could get a bigger mortgage and afford a marginally bigger house, but add in stamp duty and it just is very difficult to rationalise. Colleagues 10,20 years older bought these kinds of properties without a second thought at the same age.

The lifestyle doesn’t look as good as it did in very recent memory, so the tax levels feel very punitive.

Considering Western Europe, North America and Australia/NZ are the “western world” and uk is 15th in Europe on VAT I’d dispute it’s near one of the highest for vat - it’s mid range at best

if you now want to encompass all tax not just your comment on vat which I picked up on, then that is a different set of facts

UAE is indeed a low tax area, as is the ME in general, the government in this area collect significant revenue from oil, therefore public services can be funded in this way.

It's not about that.

60% of UK tax income is paid by just 10% of our workforce.

Over half of households in the UK take more out the system than they pay in.

We live in a society that is not sustainable.

You also need to consider that those also earning higher wages with higher tax payments also live in more expensive areas where a 4 bed house is well over £1million so mortgage outgoings are huge.

We're not talking about the super rich here. We're talking about normal hsrd working people.

Why do you think that it if funny?

@BeeryZ your post sums up exactly how I feel - better expressed than my OP!

Over half of households in the UK take more out the system than they pay in

due to wages not being high enough to find a household and government benefits being given to top up the wages given by companies. If wages were significantly higher, increase in tax would follow and less benefits would be required

Smug AND priggish!

I see it @PeasontoasttI have many cousins in their 30s (my mum is one of 8 and Dad one of 5) who have moved to Canada, Dubai, Singapore, Australia and India. It’s sad as their jobs range from mechanics, IT, Medicine, recruitment, electrician etc so really useful jobs we need in our economy. They love their lives though. The UK doesn’t have the prestige it used to have, it can’t offer the same conditions of living for this age group as some other countries.

BUT I think they’ll all come back one day (least I hope so!).

My son works in the USA, My husband and I worked in the US and Singapore for many years. 2 of my sons friends are moving to the US in the upcoming months.
Soon there won't be anyone productive left here. Talent is leaving.