I am shocked at how little my net salary is going up in my new role

[OneSparklyGoldBear]

currently on 80k salary with a 10k allowance. I have now been offered a new role for 95k salary with 7k allowance.

When I am working out my net income it seems to be coming to £300 extra a month only with new job!

I make sure I sacrifice enough of my salary into pension to avoid 60% tax at above 100k.

Is my maths incorrect or is it simply a small net increase?

Why 10%? 2% salary sacrifice enough to get below 100k?

To have a better pension, obviously.

Bear in mind also that you can “only” put 40k into pension before you pay tax on contributions. There was a one-off uplift to 60k for 24/25 tax year.

Worth mentioning in case your employer lets you salary sacrifice a bonus payment straight into pension, so be aware of the total when coupled with your regular monthly contributions.

(I am well aware that “only” is doing a lot of heavy lifting there.)

I am quite interested in tax but even I think it can be complex (and I have helped one son do his tax return last week; talked to another child about theirs this week and will be helping another son in the next few weeks). I don't think even the self assessment tax form is particularly easy if you have slightly complex affairs, even for high earners. Some high earners are footballs or dancers and not necessarily even very academic.

My general advice to higher earner women is get so far above the £100k mark that the 60%+ tax trap disappears rather than hold yourself back from promotions or go part time. That still does not mean tax is low once you are well above that - it it still very high at 45% tax, 2% NI and for some 9% or 15% student loan charge. All far too high.

Don't know if your maths is correct but sometimes a change of role can bring more than money - it can bring opportunity. I've spent so long at my current grade in my role that taking a promotion to the next grade will bring no money whatsoever (unless I can negotiate a token £1k pa). But it gets me into the management grades, a different bonus, and looks more senior.

Incidentally to those saying £300 is not much, and what amount makes it worthwhile - when I started with my current employer, after moving across the country and having our son, I brought home the princely sum of £4.50/week more by working than by claiming benefits. This was in 2009, not in the 1960s! Pride made me work, opportunity to better myself made me work. It's not all about money.

LostOnTheWayToManderley Unless I’ve got this totally wrong, I don’t think the new 60k limit is a one-off thing, I think that’s permanent?

I stand corrected! Thanks 😊

I don't disagree with you, although earlier in the thread the OP asked whether one set of calculations a poster supplied was post-tax or not. I mean if she can't divide 99 by 12 using a calculator and see that the answer is not 5.7, then it does make you wonder how innumerate some people are.