AIBU to feel disheartened by earning into the higher tax band?

[Chocolateapot]

I have finally after many many years of studying progressed in my career to just slightly above the 40% tax threshold. Unfortunately I’ve realised this now means any additional income I earn is now taxed at 40%, student loan 9% and 2% national insurance, essentially giving a marginal tax rate of 51%.

Not sure why I bothered tbh

Adult Social Care is services for people with learning disabilities as well as the elderly ....life long care

You only pay 40% tax on anything over 50000, you don't pay 40% on the whole, so if you earn 65000, you only pay 40% tax on the extra 15000.
For the 2026/27 tax year in England, Wales, and Northern Ireland, you can earn up to £50,270 before paying the 40% higher rate tax. You pay 20% tax on income between £12,571 and £50,270, and 40% on any income above £50,270 up to £125,140.

What alternatives to high taxes do you suggest?

I remember vividly the first month I earned enough to pay higher rate tax, it was an achievement. A real milestone in my career. I bitched a bit when I had to pay tax on my company car but I always saw increased tax generally as the price of success and having the broadest shoulders.

You need to start learning about finance. You need to be utilising pension contributions to bring you down into the 20% tax bracket. If you can't increase your contributions to the employer's scheme, start a SIPP. You do not need a financial adviser to do this. Plenty of good advice out there for free. Check out Rebel Finance School on YouTube and Facebook.

Feel exactly the same. It feels like what’s the point in bothering to progress and work hard when you just end up losing more through tax. The whole system is rubbish in my opinion.

I’m in the same position and going to look into paying into an AVC for the future with the additional over the threshold so I can avoid some of the tax.

Congratulations on supporting the whole of the UK with your extra 2 grand per year.

It's student loan you should be most annoyed about. I earn marginally more than you but never did a degree so don't have that debt to contend with. Now that one I can understand being upset about.

Yes, where they consider people earning over 50K rich.

Pay more of your wages into a work pension

Earn £60k and you'll start losing your child benefit while those on benefit packages worth £60+ keep their child benefit.

Something is very wrong in this country where to work hard and do well, penalises people so that we wish we hadn’t bothered.

Nonsense.

2% national insurance?

In Scotland the higher rate of tax starts 7k earlier than in England (£43,600-ish) and isn’t 40% but 42%. And the next rate starts at £75k and is 45%. All so the SNP gets loads more money to waste on benefit recipients (far higher than in England). Oh but if you earn less than average you pay something like £40 a year less tax, all so the SNP can say it protects those on low pay better than in England. Performative drivel day in day out.

People in Scotland on £43k don’t have broad shoulders. They’re skint.

Coming on to say that. Get it under 40% threshold by paying into your pension. You don't know how long you will work (health/family/not liking job etc) so giving it a boost now will pay off later in life (and get u under the threshold). Also if u give to charity, they get 25% back and u can claim the other 15%).
That's my tuppence worth.

Totally right! No incentive to work hard at all. I'm still working at 75 years while I know people doing nothing and could easily work on the same income. The left wingers seem totally naive to the fact that millions are scamming the system. If they brought back in person interviews that would immediately reduce. People are using AI to fill in their online claim firm. I give up!

It drives me insane the way hardworking people are treated.

We both come from working class backgrounds. I worked three jobs to go through uni. Husband went into work through an apprenticeship and did his degree whilst working.

We have both since studied several post graduate qualifications (MSc / PhD) to get us where we are, that's evenings and weekends we gave up, the stress we endured.

We have worked our way up the property ladder by buying houses that needed work, doing it ourselves whilst working full time and studying masters degrees to get us to our house now.

We didn't go abroad, we bought second hand furniture to keep being able to plough money into renovations.

On paper we live a privileged life, good jobs, moderately big house in the country. Kids at pre prep but it's not real because we've been hit from every angle and we aren't "wealthy" We've got to take them all back out of their school at the end of the school year because of 20% fee increase ( 3 adopted children who really benefitted from small class sizes due to their needs). Our mortgage has absolutely soared this year, We've lost our tax free childcare, we don't really see any bonus or pay rise.

I can't help resenting a bit that we've worked ourselves to the bone to get here and we aren't exactly living a high life but now the child benefit cap is lifted so I could live in a house with subsided rent, where all maintenance work is done for me, free prescriptions, cheap universal credit entry into attractions, 30 hours free childcare for my preschool age child. 20% off my wraparound care fees and holiday club (which I wouldn't even need to shell out for if I didn't have a full time job). It doesn't stack up.

I was a high earner before I was on benefits for disability. I've paid into the system. Don't be so hateful.

You're still up the other 49%. Bother, don't bother it's up to.you

I'm happy paying taxes. My salary is just fine and I don't begrudge others the help social services provide for them. I'd happily pay more, especially if I knew the money was being used well. Yes, I am a socialist to my very core!

If it was socialism she wouldn’t have a student loan

The issue most of us have is that public services are getting worse even though taxes are higher than ever. And that’s down to the soaring benefits bill.

I understand I’m about 20k worse off for moving up tax bracket from a small increase
feels a bit unfair ,like I have given so much time effort and energy to work hard and I’m no better than I was before more time and stress and considering a Change

Same. We seem to be in the minority lately, though!