If you were on £85k how much of a rise would you need?

[Chocbuttonsandredwine]

I know. First world problems and all that.

Looking at a possible promotion. Currently on £85k… good year I get 35% bonus. However it pushes me over the £100k so I’ve started pushing a chunk into pension. So don’t see as much real time benefit. Pension is getting better but hangover from the years I earnt £25k. I digress

So possible promotion, no clue on ££ yet, but Im trying to figure what I would need/want to make a sizeable difference, that it isn’t all just swallowed up in tax as I’d lose all of personal allowance.

I know I should know this, but I don’t, like I said 5 years ago I was on £25k and didn’t dream I’d be in this position.

Thanks

I vaguely recall you need to be over £120k, 100-120k is the tax nightmare zone.

Someone will come along soon and hopefully be more definitive.

Super well done for such an achievement in boosting your salary so much!!

Thanks. Single mum, left school at 16, grew up an an estate, so sometimes it’s a bit mad. I’m plagued by imposter syndrome.

the £100l-£120k was my understanding too…. But not sure the job would stretch to £35k rise.. although obviously bonus counts but isn’t guaranteed

Between £100-125K you lose your personal tax allowance (tapered). But then from £125K you will be in the 45% tax bracket. So pay rises always feel a bit smaller than they should. That said, a £12K rise would give you >£500 per month increase.

I think £100k has a nice ring to it, and would be fair recompense for travel etc and would be a nice extra at the end of month

it’s weird becuase I still live in the same house, and buy the same stuff. Have nicer holidays but the last 3 years of pay rises just get squirrelled away for a “rainy day” of which there are lots 😂

Go onto the take home salary website and play with the numbers

You never actually 'loose' by earning more once you are out of the benefits (including child benefit) catchement but you can have a higher marginal rate of tax as you loose your personal allowance.

If you can afford what you live on now then push to whatever amount you think is reasonable and then pay at least everything over £100k into a pension then you don't need to worry about the taper. Future payrises/bonuses may then at least have you out the other side at £125k+when you can then reevaluate

Can I be really nosey and ask what it is you do to have been earning 25k a few years ago and now 85k + ??
Tell me to get lost if you like

What age are your children? How much you 'lose' is compounded by whether you miss out on the childcare hours etc.

Health and Safety. Studied whilst working, got a few lucky promotions, right place right time.

A level aged child (1) so no concerns re child care (((although I wonder sometimes 😂)))

My DH always says, you gotta earn it to pay tax on it!

@Chocbuttonsandredwine well done you!

I never felt better off as o just upped the pension contributions up to the max I could. Though you are always better off when earning more.

Good for pension. Any bonus usually based on pre pension gross anyway.

(From £100-£126k is effectively 60% tax rate, then over £125k is 45%)

Is there any scope to work 80% hours and pay so you're not hit by the higher tax/loss of allowance? Or just put a lot extra in your pension, there's no lifetime limit any more, just a £60k pa limit I think, but you're probably a bit off that.

That's assuming you don't actually need a big pay rise, unless you have a massive mortgage/travel costs, you can probably live well enough on 'only' £100k