Tax in UK

Doobedoo said:
But we often hear from those doing well in that if you want a better outcome then get a better job.

Well if your struggling on £100k then move somewhere cheaper!
Click to expand...

I don't think anyone is suggesting that if you're on 100k that you're struggling per se, it's just not magical salary that makes all your problems go away.

I do agree that it should make life less stressful and that you can manage debts more easily if you have any other than a mortgage. Depending on your situation though I don't know if you could end up buying by top tier tech and above average cars etc...

In general though I think as you earn more you spend more even if you're very careful.

Again I'm not speaking from my perspective just making a more generic point from conversations etc..
 
Freefaller said:
Most companies I've worked at have guidance to suggest that is what you should do if you're in that 60% trap.

Unfortunately all the Joe blogs on 100k+ PAYE salary isn't going to be like one of these bankers or other high salary jobs that gets a much larger salary or an alternative package to offset the salary, such as shares or other investment options.

The issue is with the PAYE average Joe.
Click to expand...
Sure, that guidance is everywhere - all over the internet, in employers bonus documentation, on this forum. However I'd hazard a guess most people earning £100k+ end up just having to suck up the effective 60% within a few years.
 
andy said:
Our tax system isn't too bad compared to other countries. It's the awful use of the money by those in charge that I have problems with but that's another thread :p

Main thing I would try and change (no idea how) is the taxation of overtime or second jobs. At a time where some industries are struggling with labour/skills shortages it seems madness to punish those who trying to fill the gaps.
Click to expand...

Agreed, UK tax and its allowances etc.. is fantastic compared to practically every developed European country.

The personal allowances, savings allowance, pension contributions, ISA, and to a lesser extent now capital gains are pretty generous in comparison.

VAT is a lot better than many other countries, not necessarily the headline figure, but things like VAT thresholds on businesses, and the items on which VAT is charged.

Then there is the easy or paying it. Ask a Spanish resident how easy their tax returns are, or a German resident what they think their tax rate.


413x said:
British weather is terrible imo.
Click to expand...

Also agreed, it might only be 13c in Barcelona, or 17c in Alicante in the winter, but it mostly be clear and sunny. Being overcast more than 50% of the time doesn't do much to lift people's spirits, get them out and exercising etc..

Anyway, isn't this thread way off topic since the OP is talking about a friend getting a job earning $100k in Aus?
 
Last edited:
EvilRob said:
Not really - a few years of decent pay rises gets you over 125k and then for how long do you want to see your standard of living gradually decrease by never increasing your take-home?
Click to expand...
You have to take some responsibility for things in life. If you're in a position to earn that much you should also be a bit more savvy about managing your tax situation.
 
Freefaller said:
You have to take some responsibility for things in life. If you're in a position to earn that much you should also be a bit more savvy about managing your tax situation.
Click to expand...
My point is more (as I said earlier) that the current system appears geared to avoid allowing people on PAYE to become wealthy or increase their quality of life beyond a certain point - except perhaps in later years after retiring. Either avoid increasing take home even as your salary significantly increases into 45% threshold or suck it up and pay a lot of tax for relatively little take home gain.
 
EvilRob said:
Not really - a few years of decent pay rises gets you over 125k and then for how long do you want to see your standard of living gradually decrease by never increasing your take-home?
Click to expand...
How many millions face exactly that except they are being told there is no money for pay rises. Unlike you though they aren’t maxing out their pension contributions or managing their investment portfolios.
 
Doobedoo said:
How many millions face exactly that except they are being told there is no money for pay rises. Unlike you though they aren’t maxing out their pension contributions or managing their investment portfolios.
Click to expand...
Yeah, I get it, boo hoo. However we're talking about essentially middle class people on a salary here who I still believe are getting screwed by/compared to actually wealthy people or business owners who aren't on PAYE.
 
Last edited:
EvilRob said:
Yeah, I get it, boo hoo. However we're talking about essentially middle class people on a salary here who I still believe are getting screwed by/compared to actually wealthy people or business owners who aren't on PAYE.
Click to expand...
Protest against the wealthy then because those beneath can barely afford the size of violin required for this situation.
 
Doobedoo said:
Protest against the wealthy then because those beneath can barely afford the size of violin required for this situation.
Click to expand...
Um, that's what I did. Honestly reactions like this are just showing what a great job the wealthy have done on us. You have lower wage earners resenting higher wage earners when IMO it's kinda misplaced.
 
Last edited:
EvilRob said:
Um, that's what I did. Honestly reactions like this are just showing what a great job the wealthy have done on us. You have lower wage earners resenting higher wage earners when IMO it's kinda misplaced.
Click to expand...
I don’t resent you why would I? I just have very little sympathy.

On the contrary the Media did a fantastic job convincing most of the country, that those at the bottom are chavvy benefit scroungers and they must be destroyed at all costs, so we wealthier people can make even more bank.
 
Last edited:
I have always thought its better to have big tax bill than a small one, means you are earning more money, no one is going to reject a payrise taking you from £99K to £110K just because of the tax implications. The reality is unless you are earning crazy high money avoiding tax is hard, (not like it used to be) the only legit way to avoid it is pension contributions, but even then you can only go so far. I have been lucky to have had sizable tax returns in my life and many not so, I much prefer the sizable years. The other point to say is that people generally live to their means, when high earners say 100K+ isn't that much, its because they probably have a big house, nice car, bigger plans, so never feel "well off" in disposable income terms (not making any judgement / excuses here, I have experience of both, mind you, I was "coerced" into leaving our perfectly nice 3 bed semi by the ex)
 
thebandit said:
I have always thought its better to have big tax bill than a small one, means you are earning more money, no one is going to reject a payrise taking you from £99K to £110K just because of the tax implications. The reality is unless you are earning crazy high money avoiding tax is hard, (not like it used to be) the only legit way to avoid it is pension contributions, but even then you can only go so far. I have been lucky to have had sizable tax returns in my life and many not so, I much prefer the sizable years. The other point to say is that people generally live to their means, when high earners say 100K+ isn't that much, its because they probably have a big house, nice car, bigger plans, so never feel "well off" in disposable income terms (not making any judgement / excuses here, I have experience of both, mind you, I was "coerced" into leaving our perfectly nice 3 bed semi by the ex)
Click to expand...
You sum it up nicely. Even a salary of 80k is a lot and people live comfortably.

If you spend wisely and save well 80k-100k is very comfortable living in the UK.

If you spend silly and do not know how to save no money will ever be enough.
 
Doobedoo said:
I don’t resent you why would I? I just have very little sympathy.

On the contrary the Media did a fantastic job convincing most of the country, that those at the bottom are chavvy benefit scroungers and they must be destroyed at all costs, so we wealthier people can make even more bank.
Click to expand...

Same For myself. I don't resent higher earners. Everyone at end of the day is looking out for themselves and thier families.

But I certainly don't have sympathy
 
EvilRob said:
My point is more (as I said earlier) that the current system appears geared to avoid allowing people on PAYE to become wealthy or increase their quality of life beyond a certain point - except perhaps in later years after retiring. Either avoid increasing take home even as your salary significantly increases into 45% threshold or suck it up and pay a lot of tax for relatively little take home gain.
Click to expand...
Oh on that I agree. There's no wealth on PAYE.
 
Guest2 said:
So people want to try harder instead of thinking (like me) overtime is pointless, i'll be throwing 1/3 of it down the toilet on tax.
Click to expand...
interesting perspective..... not saying i disagree BUT just a thinking point.....

what would be better from a healthy life balance as well as the over all state of the country as a whole.......... 1 mega earner in a company earning £200k or 3 jobs for steady eddie employees earning 65k per year?

so perhaps it is better to encourage you not to work your behind off by taking more off you in tax, but at the same time paying another employee to work doing your same job as well?

the company gets redundancy in your role for when you are on holiday or are off sick................. 3 people are getting well paid emplyment offering a decent quality of life and paying a good (but not extreme) amount of tax between them and the chances of burnout is a lot less for those 3 people.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom