Not an ordinary working person if you earn over 45k

[TesChique]

Disincentivising anyone to strive to earn over 45k a year is a bizarre strategy for growth i feel

Aibu?

I’m sure you do, spending other people’s money.

A great post - bang on.

It’s equal in terms of 20% over the threshold

However
some people will get help with for example
health insurance contributions
relocation support
disability allowances
some employers offer other benefits

Once a salary gets over £82k approx the additional financial benefits start reducing incrementally

This is similar to thresholds for child benefits etc here in the U.K.
What you don’t do however is pay a higher income tax rate on earnings

I have to say it’s unbelievably depressing seeing the number of posters who seem to agree that earning basically anything over average / marginally above the minimum wage (which is now ~£25k) is really well off.

After tax, student loan, pension… we are talking not many extra pounds in your pocket per month.

And - inflation has been very high in recent years. A £45k salary in 2025 is like a £35k salary in 2020.

Ikr?

I earn well over that, but am fine with tax increases. State funding has to come from somewhere. I'd rather live in a kinder society than have a few extra quid. One day we might all be relying on that kindness.

Starmer and Reeves will be pleased you are keen.

Its always been tax the middle, Yes I think £45k is a reasonable salary but your not going to be rich on it. But why strive for promotions or work in higher paid sectors when uni debt is now reaching £50k, house prices are now 20% more than in 2020 and rents are increasing by 8-9% each year (since 2021). It feels like a loosing battle.

And - inflation has been very high in recent years. A £45k salary in 2025 is like a £35k salary in 2020.

And most salaries haven’t kept up with inflation.

In 2009 I got a job with an advertised salary band of £40 - £50k. The same job is now advertised as £42 - £55k.

What about thickos like me who are not especially bright or talented? never earned that much , it is a fact of life that not all us can due to a multitude of factors, brains, talent, circumstances, health, connections. life chances, the economic climate...

That’s quite a collection of abbreviations.

What is the sum total of those benefits please?

Exactly. If they lower the threshold below 50K then I will simply ensure I don't get a payrise for next few years because what's the point? Will look at alternate schemes my employer can pay into for me instead of my paycheck

I only know what youve posted, obviously. If he’s been made redundant from a 6 figure job and is highly qualified then he will have received at least statutory redundancy. If he can afford to be looking around for lower paid jobs and you’re maintaining your lifestyle then it seems fair to presume he has money to rely on. When I was made redundant earlier this year I took work anywhere I could - sounds like he doesn’t need to do that.

DH and I make genuine sacrifices for his income - he works away. There would definitely be a point in terms of taxation where him being at home more would be a no-brainer; we're not enduring these absences to pay into the massive deficit when Labour are making no attempt to get a grip on spending.

Surely the clue is in your first five words, though - you earn well over that. There are people on £45k who are not going to be able to afford a lot of extra tax.

I agree it’s too low. But equally the average family of four has a household income of £40k. So if you alone earn £45k you are doing ‘better’ than many. The problem is that our overall levels of inequality have become vast. So we do need to tax those with houses worth £2million and those with incomes £200k plus. The middle isn’t the right place. But do have the grace to acknowledge so many families are getting by (or not, actually!) on much less than £45k per parent.

Exactly. Plus not everyone is interested in going to uni. Many want to go right into the trades aged 16 to get earning money ASAP. Never met a poor plumber yet!

It's not catastrophising to anticipate that people stop spending on luxuries when the economy is a shit show. Or do you think the economy is in a good position currently?

I didn't hit this till nearly50- teacher for 30years. I am in a 2 bedroom starter home. No way am.i wealthy. What an absolute joke

Perhaps those who are happy to pay more ( whilst Labour do nothing about reducing expenditure and benefits )
could sign up for a different tax code voluntarily

I agree it’s too low. But equally the average family of four has a household income of £40k. So if you alone earn £45k you are doing ‘better’ than many.

Not really when you factor in taxes, and the tax-free allowances.

That’s a great idea. A fair few on mn.

Completely understandable.

There are real world consequences to what Reeves implemented last October, and what she is planning on 26th.

You and your DH are right to do what is best for you - many of us are doing similarly.

I’m sure you do.

I think the economy is in an awful position, but to think the government is going to gobble up the disposable income of every single person because they are likely to increase tax on higher earners is… catastrophising.