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Original poster

What percentage of your income?

35 replies

Thingsthatgo · 21/11/2023 09:23

DH and I disagree about how much money to spend at Christmas.
I estimate that we spend £1000 in total at Christmas, including all gifts, food, outings, giving to charity etc.
our annual income after tax is approx £50, so we spend 2% of our income on Christmas.
How does this compare?

OP posts:
Isyesterdaytomorrowtoday · 21/11/2023 20:59

About 1-2% of our take home

BeefFloor · 22/11/2023 00:01

@HouseNoMore i am assuming that’s a typo for siblings, but really really hope it isn’t and wondering what a “nibling “ is? Sounds so cute, I hope it’s not just a typo!

WrongSwanson · 22/11/2023 00:19

Less than 1%

And that includes panto, ice skating, days out etc

We have four children and earn plenty between us but i think the best bits of Christmas are all free /free ish (baking , carols, Christmas lights, Christmas films and books and music.. )

HouseNoMore · 22/11/2023 07:30

BeefFloor · 22/11/2023 00:01

@HouseNoMore i am assuming that’s a typo for siblings, but really really hope it isn’t and wondering what a “nibling “ is? Sounds so cute, I hope it’s not just a typo!

Not a typo 😊 niblings are nieces and nephews

hiddle · 22/11/2023 07:56

We spend about £2500, which is about which is about 1.8% of our annual gross. We save throughout the year.

hby9628 · 22/11/2023 08:04

I budgeted £1200 for Xmas gifts (large family) I am going over by about £200 this year
We don't spend loads on food or activities. We are doing the local panto & Xmas dinner so that will be another couple of hundred.

strawberrybubblegum · 22/11/2023 20:23

housethatbuiltme · 21/11/2023 14:34

I use to make 12k but now half that at 6k... DH makes 18k to give us a household income of 24k (a decent amount, I know many on less). We don't struggle at all, no debt and lovely Xmases (not everyone gets a £1000 new Iphone lovely but plenty of gifts for the kids etc...).

I struggle to imagine having 100k income. The house we are currently mid way through buying (the biggest purchase I will ever make) cost less than that. Even if you took 25k off 100k to live as we do now (rent, bills, food and even our birthdays and xmas costs, holiday etc...) you could still buy a house with the remaining 75k. Imagine being able to buy a house as a xmas gift if you really wanted too... its quite mind blowing.

Must be nice.

Show quote history

So I was curious and did the numbers...

You have a household income of £24k/year split £18k/6k
-your DH is paying £1800 income tax/NI per year and you are paying £0
-with 5 kids, you get £20,000/year in benefits (assuming no savings and no disabilities). That's £300 Universal Credit, £35 mortgage support, £87 child benefit per week
-no student debt repayments if you went to Uni since both under the threashold
-mortgage in £75k house over 25 years assiming 3.6% interest costs £4200/year

That leaves you a household income after tax and mortgage of £38k/year or £3200/month

The fictional family on £100k/year split £60k/£40k
-pays £25k/year income tax/NI
-no benefits, not even child benefit since one earner is in the higher tax band.
-student debt repayments (Uni degree needed for professional jobs earning £40k+) £4350
-Mortgage on £350k house (more expensive area where those jobs are located) over 25 years assiming 3.6% interest costs £21,500/year

That leaves this 'unimaginably rich' household income of £50k/year or £4200/month after tax and mortgage.

That's £1000 per month more than your family: £4200/month vs £3200/month. Nice, but hardly enough to buy a house per year!!!

To be honest, I'm actually quite shocked that there is so little difference. No wonder the UK has such a bad productivity problem, with 20% of working age adults not working and a further 20% working part time.

If the higher earner decides to half her hours, their household spending money (after tax and mortgage) will only come down by 25% to £33k/year (ie same as yours!). She might well decide that's a worthwhile sacrifice to have more time with her kids/look after her health.

Unfortunately, the net amount they're putting into the common pot drops from 29k/year to 15k/year. So where will the 18k/year your family is being given from the common pot come from?

But at that point they have the same amount of disposable income as your family. If they realise, maybe they'll sell up, move to Durham and fulfil their long-standing ambitions to become a teaching assistant on 18k and a school lunchtime assistant on 6k. Very worthwhile professions, and why wouldn't they given that they'll be no worse off financially?!?
Pretty disastrous for the economy though.

AlltheFs · 22/11/2023 20:36

strawberrybubblegum · 22/11/2023 20:23

So I was curious and did the numbers...

You have a household income of £24k/year split £18k/6k
-your DH is paying £1800 income tax/NI per year and you are paying £0
-with 5 kids, you get £20,000/year in benefits (assuming no savings and no disabilities). That's £300 Universal Credit, £35 mortgage support, £87 child benefit per week
-no student debt repayments if you went to Uni since both under the threashold
-mortgage in £75k house over 25 years assiming 3.6% interest costs £4200/year

That leaves you a household income after tax and mortgage of £38k/year or £3200/month

The fictional family on £100k/year split £60k/£40k
-pays £25k/year income tax/NI
-no benefits, not even child benefit since one earner is in the higher tax band.
-student debt repayments (Uni degree needed for professional jobs earning £40k+) £4350
-Mortgage on £350k house (more expensive area where those jobs are located) over 25 years assiming 3.6% interest costs £21,500/year

That leaves this 'unimaginably rich' household income of £50k/year or £4200/month after tax and mortgage.

That's £1000 per month more than your family: £4200/month vs £3200/month. Nice, but hardly enough to buy a house per year!!!

To be honest, I'm actually quite shocked that there is so little difference. No wonder the UK has such a bad productivity problem, with 20% of working age adults not working and a further 20% working part time.

If the higher earner decides to half her hours, their household spending money (after tax and mortgage) will only come down by 25% to £33k/year (ie same as yours!). She might well decide that's a worthwhile sacrifice to have more time with her kids/look after her health.

Unfortunately, the net amount they're putting into the common pot drops from 29k/year to 15k/year. So where will the 18k/year your family is being given from the common pot come from?

But at that point they have the same amount of disposable income as your family. If they realise, maybe they'll sell up, move to Durham and fulfil their long-standing ambitions to become a teaching assistant on 18k and a school lunchtime assistant on 6k. Very worthwhile professions, and why wouldn't they given that they'll be no worse off financially?!?
Pretty disastrous for the economy though.

Show quote history

It’s mad isn’t it. I won’t bore you with our own circumstances but in a nutshell I work 4 days per week because full time we end up with less net household income. Bonkers.

Mine is due to child benefit and higher rate tax thresholds - but it literally doesn’t pay me to return to full time.

housethatbuiltme · 23/11/2023 09:59

strawberrybubblegum · 22/11/2023 20:23

So I was curious and did the numbers...

You have a household income of £24k/year split £18k/6k
-your DH is paying £1800 income tax/NI per year and you are paying £0
-with 5 kids, you get £20,000/year in benefits (assuming no savings and no disabilities). That's £300 Universal Credit, £35 mortgage support, £87 child benefit per week
-no student debt repayments if you went to Uni since both under the threashold
-mortgage in £75k house over 25 years assiming 3.6% interest costs £4200/year

That leaves you a household income after tax and mortgage of £38k/year or £3200/month

The fictional family on £100k/year split £60k/£40k
-pays £25k/year income tax/NI
-no benefits, not even child benefit since one earner is in the higher tax band.
-student debt repayments (Uni degree needed for professional jobs earning £40k+) £4350
-Mortgage on £350k house (more expensive area where those jobs are located) over 25 years assiming 3.6% interest costs £21,500/year

That leaves this 'unimaginably rich' household income of £50k/year or £4200/month after tax and mortgage.

That's £1000 per month more than your family: £4200/month vs £3200/month. Nice, but hardly enough to buy a house per year!!!

To be honest, I'm actually quite shocked that there is so little difference. No wonder the UK has such a bad productivity problem, with 20% of working age adults not working and a further 20% working part time.

If the higher earner decides to half her hours, their household spending money (after tax and mortgage) will only come down by 25% to £33k/year (ie same as yours!). She might well decide that's a worthwhile sacrifice to have more time with her kids/look after her health.

Unfortunately, the net amount they're putting into the common pot drops from 29k/year to 15k/year. So where will the 18k/year your family is being given from the common pot come from?

But at that point they have the same amount of disposable income as your family. If they realise, maybe they'll sell up, move to Durham and fulfil their long-standing ambitions to become a teaching assistant on 18k and a school lunchtime assistant on 6k. Very worthwhile professions, and why wouldn't they given that they'll be no worse off financially?!?
Pretty disastrous for the economy though.

Show quote history

Well your numbers are massively off and made up so completely wrong.

20k a year in benefits lol what fucking planet are you on.

No idea where on earth you pulled £87 per week child benefit, its £39.90 and by the way ALL benefits we receive are INCLUDED... thats my £6k income. That amount is our TOTAL household income.

My DH also does pay back on his student loans, its only like £5 a week or so but once again you are wrong. DH was at uni in 2001 when the repayment threshold was 15k. How young do you think we are that we are under the system that was passed in 2016?

I also do not have a mortgage, I was in the horrific position to lose a loved family member however this family member very generously left us some money enough to buy a doer up starter house outright. That puts us in a privileged position that most round here are not and never will be.

The fact you think we could get a mortgage in itself is funny, a total lack of reality to your post.

strawberrybubblegum · 24/11/2023 12:36

housethatbuiltme · 23/11/2023 09:59

Well your numbers are massively off and made up so completely wrong.

20k a year in benefits lol what fucking planet are you on.

No idea where on earth you pulled £87 per week child benefit, its £39.90 and by the way ALL benefits we receive are INCLUDED... thats my £6k income. That amount is our TOTAL household income.

My DH also does pay back on his student loans, its only like £5 a week or so but once again you are wrong. DH was at uni in 2001 when the repayment threshold was 15k. How young do you think we are that we are under the system that was passed in 2016?

I also do not have a mortgage, I was in the horrific position to lose a loved family member however this family member very generously left us some money enough to buy a doer up starter house outright. That puts us in a privileged position that most round here are not and never will be.

The fact you think we could get a mortgage in itself is funny, a total lack of reality to your post.

Show quote history

However clueless I am about living on a single 18k income in Durham, you're showing a similar cluelessness about a 100k income in the SE! "Buy a house for Christmas" ffs.

I used Turn2us benefit checker, so my numbers aren't made up - although I misread your '5-person family' and entered 5 primary age kids instead of 3, and also wrongly inferred that you work part time when you said you have 6k income.

Re-doing the numbers for 3 kids and one partner not working...

Our fictional family now has a single 100k income and a SAH parent, which gives them a net income after tax, NI, student debt repayment for the working parent (and no child benefit) of £59,400.

They're handing over £40,600 per year into the common pot, to pay for benefits, schools, hospitals etc.

After mortgage, that leaves them £38k/year or £3200 per month. And yes - like you - they will probably have needed family help to buy a house (they need 30k just for their deposit) whilst paying high rent (no housing help from the government obviously)

That's 50% more than the £2170 per month your family has each month to spend (I've added on your child benefit and removed £20/month student loan repayment). They'll have extra expenses you don't have too: no 30 hours free nursery, reduced student loans for their kids when they get to Uni so parents have to top up, higher council tax, etc. It's definitely nothing like enough to buy a house for Christmas! So maybe you should stop imagining that they are unimaginably rich.

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