AIBU to feel deflated after payday despite a decent salary?

[Wtfisisfor]

Do you ever just get paid and think seriously is this it… I got paid this morning 3100 was put into my account, I transferred 1400 to the joint for bills and household expenses. And I’m left with the rest, but when I look at it, I just think, is this it? Anyone else? Just feeling a bit defeated today! I know to some people this is a lot of money. But these days it really doesn’t feel like it. Come and join for a moan

I find it really depressing how many people on this thread are saying that you should feel lucky that you can cover your basic bills and anything extra is unnecessary indulgence. Why shouldnt people want and be able to enjoy themselves without being seen as selfish.

It doesn't have to be. I used ONS figures for average family of 4 and average uk bills and ended up with Mortgage/Rent of £1500. That's a 250k mortgage or rent for a 3/4 bed house in many parts of England.

Food 700
Energy 150
Council Tax 150
Water 50
Fuel 200
Housing 1500

Total 2750

Where did you hear that?!

why would people then thrive to train, work hard, build career? if they don't see improvement of lifestyle?
And if mid- high earners can't afford some good lifestyle, who's going to pay for hospitality, discretionary retail, cleaners, entertainment?

I only take home around £1660 and as a single person have to finance all costs from that. I’d love to find a job taking home over £3k a month as it would be lovely not to have to worry about paying the bills.

It is depressing to see more and more money going on just basics though however much you earn.

Yes I’m the same and started work very young. I think it would be better now if that culture had continued and got young people used to working and gaining employment skills.

There’s a very high level of NEETS which is not good - but it’s in part down to the higher minimum wage for them which is a mistake by the government I think.

But you can’t easily claim benefits without applying for huge numbers of jobs - and often even well educated young people don’t even get a response to applications. My sons are both working part time because the employer doesn’t want to pay a proper pension contribution to the auto enrolment scheme (they only pay employer contributions over the lower limit of around £700 a month). They don’t claim any benefits but I suppose they’d need to if they had their own homes and kids

Not everyone has the skills to get more than a minimum wage job, doesn’t mean they don’t work hard

I completely agree, it's really hard to work really hard right now and have nothing to show for it.

I'm grateful to be comfortable, but it's tentative.

But when even more high earners such as doctors move abroad, there won't be enough staff in our NHS!

People need to look at the bigger picture.

1700 a month to play with? No I wouldn't feel defeated by that. Can't relate.

This taxation is wrong. Top tier is 45% even if you have no allowances left. Please check this with salary checker and an accountant.

You left out a category - those who are working hard, but still have to claim 'handouts' as you call them, because they're paid shit money. Should they have to be grateful too?

I made a career change last year so I earn slightly less than I used to and my basic salary is about the same as yours. I put £1500 in the joint account for bills, food, petrol and DC / joint expenses. I then have about £1500 to pay credit card bill, savings and expenses. It's not bad but it's not that much when we try to save £1500 each. Thankfully I can earn bonuses and can earn £500-1500 extra most months plus my DH earns slightly more than me so between we're fine and I'm not complaining.

Plenty of high earners like this country and want to see it thrive and contribute to it. Myself included. Most people who are doing well for themselves don't fancy uprooting their entire family just because of tax. Those who did and subsequently had to flee Dubai can't come back home unless they pay taxes.

I suspect doctors mainly not moving for taxes but because of the state of the NHS.

But each to their own. Those who don't want to contribute can leave and drive up house prices in some unsuspecting Italian or Swiss community. I bet locals are waiting for them with open arms.

1700 left so
700 - savings - that is great you are building up the security of a savings buffer
150 - fuel - yes tough for everyone at the moment with the global situation prices are high
250 - mums birthday gift and dinner out for the family (significant birthday!) - sounds like a lovely celebration with mum and family. I bet everyone had a great time and mum loved seeing the grand kids and her present.
60 - physiotherapist - Again not fun spends, but nice to be able to afford private treatment. Hopefully things are on the mend.
100 - dc summer clothes (just a few bits). When DD was little enough to let me choose I enjoyed getting a few new season clothes.
300 - holiday savings - 600 between you and DH that is going to build into a useful pot. Where are you planning to go?
If my mental maths isn't letting me down you still have some left.

Defeated/deflated or building up savings, enjoying time with family and looking forward to a nice holiday. Sometimes you need to look at what you do have - & really im no Mary Poppins.

It’s not wrong. The top rate of income tax is effectively 60% as you lose your personal allowance above 100k. Add on NI and student loan and that all equates to a 71% margin rate.

This is your only thread OP!

Plenty of doctors have reduced their working hours to ensure their pay stays under the £100k cliff edge which is disastrous for the NHS.

yes I name changed

They don't even need to move abroad.

Cut hours and avoid promotions: how the £100,000 tax trap is shaping work

When this was first introduced only very few of very high earners were affected. Now it's 4% of working age population.

If you add to this that top 10% of earners pay 60% of all income tax (and that the entire income tax receipt amount is now less than benefits bill), then these two threads look very worrying.

Yanbu

It comes in...and goes out.

Brutal

A student loan is not a tax so take that out of your hyperbole equation. Many people from well to do families got it paid off by mummy and daddy anyway so don't pay it. If they make most of their income from stocks and shares their tax rate is very low compared to income. There's a bizarre quirk in the system where a salary btw £100k and £125k disadvantages you somewhat. Beyond £125k you're absolutely fine. No need to bring out the tiny violins.

Why is allocating money to savings, holidays and family celebrations brutal? I thought they are the type of things most people would like to allocate discretionary spending to (if they have discretionary spending in the first place).

Would you be happy to lose 71% of the next £20k you earn?

If you want an even worse example I can show you how, even when student loan is excluded, I actually lost money when I received previous bonuses due to childcare thresholds.

In fact since my DS was born 5 years ago I have received nearly 100k in bonus payments of which I have retained less than 10k in total. I’d love someone to explain the fairness of a net deduction of 90% to me.

Not true. Student loan repayments may not be a true tax but they are an effective tax. So put away your tiny soapbox. They are collected at source by HMRC, triggered by an earning level and essentially most people earning at the level to trigger repayment can afford interest only repayment. You become locked-in. It’s a government-owned mortgage on your future… aka a tax.

But the 9% student loan repayments are basically just another tax, but only on younger people. And of course, it's a very real deduction from your payslip that isn't avoidable (unless you earn less or move abroad).

As for the 62% marginal tax rate between £100k and £125k it's having a behavioural impact because more and more people affected ARE reducing their hours to avoid it. That's affecting the productivity, efficiency and GDP of the UK workforce.

Talking about "tiny violins" is just the green eyed monster of envy and fails to understand the bigger picture of the damage to the UK economy of having such insane tax cliff edges and stupidly high marginal tax rates which DO have damaging effects as a result of human behaviour.

Whether you like it or not, taxes DO impact human behaviour and if they get it wrong (like our politicians over the past 20-30 years), it DOES impact on the country's economic and prosperity. Whether you agree or not with such behaviour, is neither here nor there - it's happening and it's damaging.

It twas ever thus. Go back in time and people have always changed behaviour to avoid what they think are unjust and unfair taxes. Look at all the bricked up windows following the "window tax" first introduced in 1696 where people deliberately bricked up windows in their houses to avoid having to pay a stupid tax based on the number of windows a house had! Our politicians havn't learned a single thing from the history of taxation!