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!

But you don't.
You are hanging on to his coat tails.
Without him, what would you do?

Most definitely! Perhaps if this were the focus we could all reduce tax we pay - high, middle, and low end - disabled people and pensioners wouldn’t be targeted for cuts, cliff edges for the high earners could be replaced by gradual ones, benefits that high earners pay into could also benefit from like funded childcare. When you see that chart and if we’re focussing on maximising income, this has got to be prioritised surely.

I haven’t lost ambition as such but defo trot work life balance, I changed jobs and I pay more into my pension.

Yup. The outgoing director of the institute for fiscal studies was voicing the same lament. People - and politicians- need to get real.

ifs.org.uk/articles/rachel-reeves-will-need-face-fantasists-both-sides

I'd up my hours. Work full time.

As a single mum? Yeah right.

60% of evasion is small businesses. So people paying their cleaners, gardeners, roofers, takeaway, nail bar in cash. These are the people facilitating tax evasion.

www.gov.uk/government/news/tax-gap-estimated-at-53

So we tackle the other 40% - that £18.72 billion would come in quite handy, wouldn’t it?

What does "in cash" mean?
Paying in cash does not mean that cash is not declared to HMRC. I paid my cleaners in cash. They were booked through an agency, so there would have been a trail anyway.
I pay for my fry up in the local cafe in cash. That does not mean they are not paying tax.
I use cash for my Tesco shop.

There are multiple takeaways and cafes who are cash only purely so they don’t have to declare it to HMRC. It’s a well known ruse. If they were card only it would be much harder. That money would have to be paid into an account, and accounts are much easier to trace by HMRC. Why do you pay your cleaner directly if they are employed by an agency? Do you think they’ll be paying her post PAYE or telling her she can keep the cash and just billing her agency fees?

I agree. Paying in cash is not a crime and it’s up to the small business to properly account for income. However, if a supplier said their quote would be cheaper if I paid in cash, that would set off alarm bells and I wouldn’t want to collude. I could pay for my grass cutting in cash, card, or bank transfer. All same price. Nowt wrong there surely.

So you think you could support two children, and havd to pay a mortgage/rent, with perhaps a top up of let’s say £60 CMS/week on national minimum wage, full time?

Or perhaps work those 80 hours/week you’re suggesting others on NMW should do to ‘make ends meet’.

Really?

Social security spending in Great Britain
In 2025 to 2026 the government is forecast to spend £316.1 billion on the social security system in Great Britain. Total GB welfare spending is forecast to be 10.6% of GDP and 23.5% of the total amount the government spends in 2025 to 2026.
Around 55% of social security expenditure goes to pensioners; in 2025 to 2026 we will spend £174.9 billion on benefits for pensioners in GB. This includes spending on the State Pension which is forecast to be £145.6 billion in 2025 to 2026.
In 2025 to 2026 we will spend £141.2 billion on working age and children welfare. This includes spending on Universal Credit and its predecessors, and non-DWP welfare spending.
In 2025 to 2026 we will spend £75.3 billion on benefits to support disabled people and people with health conditions, and £35.3 billion on housing benefits.

Guidance and methodology: Benefit expenditure and caseload tables - GOV.UK

If you make state pensions means tested you remove yet another incentive for people to save so your actual savings will be min.

UC is only 4.4bn lower than state pensions though. Isn't this shocking?
Isn't it obvious which area needs to be addressed first?

I know three single mums who work full time with no benefits at all

It was 3 cleaners that used to clean my house (big detached that they would get through in about 45 minutes between them). They were employed by a cleaning company. They were not self employed. I assume any cash was given to someone higher up than them.
I was also offered cheaper rates for building work "cash in hand" which was still offered as bank transfer. Going through a bank does not mean it is legit either.

I used cash for everything as it is easier to keep track of spending etc.

Yep. I have a friend who has her own shop. She takes cash payments as an option. It is taken to the bank and put into her business account and added just like card payments are.
I read that it costs businesses more to process card payments, so that is why some prefer cash payments (certainly true for a burger van local to me), but I don't know how true that is. Happy to be educated on it.

‘Nothing makes conditions more unbearable than the knowledge that no effort of ours can change them.’

Hayek ‘The Road to Serfdom’, 1944.

Post-Covid, the state has become too strong, too many people are dependent upon it, and its officials have accumulated so much power, and have become so arrogant in the way it is exercised, that it might be impossible to reduce it now.

Yes it’s the universal credit that needs tackling. And it’s not necessarily fraud, but allowing the ability to work part time and be topped up

And where are their kids whilst they work? In state funded child care? Because that is a benefit.
Or with family? Lucky them. Not everyone is that fortunate.

The amount paid in UC on housing is what needs to be tackled.

Nope. I’m still earning more than I ever did, and looking forward to my next promotion.

A whole three? Goodness.

Whats their situation? High income? Fathers who Actuallg pay their fair share? Mortgage that doesn’t attract housing element? Or living rent free?

it’s not possible to live on full time minimum wage with dependants without some sort of financial help from somewhere.

No they pay for their own before and after school clubs

Tbf You’re only considering two options - benefits or high wage work. You would be working your arse off for a pathetic wage in a skilled job with tonnes of student debt like lots of us are.

Tbf You’re only considering two options - benefits or high wage work. You would be working your arse off for a pathetic wage in a skilled job with tonnes of student debt like lots of us are.