Tax in UK

[kai]

So what is a good salary in the UK then?

It’s relative to your profession and albeit impossible to provide a figure as an answer.

Salary is also incredibly subjective. What you consider a “good” salary might be totally polar to what others consider based on experience, industry etc.

This is me personally and my beliefs. If I was to have this mind set, I’ll become complacent. That goes for any figure.

 

[kai]

Do you not think that the top 3-4% live a different lifestyle than the bottom 50%?

I'm somewhat reminded of that Question Time episode with the Northern bloke on 85K a year, who had no ****ing clue he was in the top 5% of earners. He thought everyone lived the same lifestyle as him.



Well, then you're very short sighted or earning a lot closer to £100k than the average person.

It simply means you have less worry; for example with monthly bills and weekly outgoings but again it’s relative.

Shortsighted yes but without knowing the detail hard to judge. Usually, the higher you climb the harder the fall.

 

[Azza]

Sucks doesn't it.

I did vaguely remember reading about it but didn't realise it was 1% for every £100! At least we'll get 30 free hours in January.

 

[Mrwong]

One site said average wage non London in 2000 was £19,978, and in 2023 £29,600 average wage non London. Based on the inflation rates it should be between £36,000 and £40,406.00, should be around £ 38,403.00. Based on this you really think £100,000k is a lot these days.

year	amount	inflation rate
2000	£19,978.00	0.03
2001	£20,577.34	0.02
2002	£20,988.89	0.02
2003	£21,408.66	0.03
2004	£22,050.92	0.03
2005	£22,712.45	0.03
2006	£23,393.83	0.03
2007	£24,095.64	0.04
2008	£25,059.47	0.04
2009	£26,061.84	-0.01
2010	£25,801.23	0.05
2011	£27,091.29	0.05
2012	£28,445.85	0.03
2013	£29,299.23	0.03
2014	£30,178.20	0.02
2015	£30,781.77	0.01
2016	£31,089.59	0.02
2017	£31,711.38	0.04
2018	£32,979.83	0.03
2019	£33,969.23	0.03
2020	£34,988.30	0.02
2021	£35,688.07	0.02
2022	£36,401.83	0.11
2023	£40,406.03	0.11

 

[throwaway4372]

The point is it doesnt mean you have fat stacks of scrooge mcduck money in the vault for hmrc to help themselves to.

 

[aspiring]

One site said average wage non London in 2000 was £19,978, and in 2023 £29,600 average wage non London. Based on the inflation rates it should be between £36,000 and £40,406.00, should be around £ 38,403.00. Based on this you really think £100,000k is a lot these days.

year	amount	inflation rate
2000	£19,978.00	0.03
2001	£20,577.34	0.02
2002	£20,988.89	0.02
2003	£21,408.66	0.03
2004	£22,050.92	0.03
2005	£22,712.45	0.03
2006	£23,393.83	0.03
2007	£24,095.64	0.04
2008	£25,059.47	0.04
2009	£26,061.84	-0.01
2010	£25,801.23	0.05
2011	£27,091.29	0.05
2012	£28,445.85	0.03
2013	£29,299.23	0.03
2014	£30,178.20	0.02
2015	£30,781.77	0.01
2016	£31,089.59	0.02
2017	£31,711.38	0.04
2018	£32,979.83	0.03
2019	£33,969.23	0.03
2020	£34,988.30	0.02
2021	£35,688.07	0.02
2022	£36,401.83	0.11
2023	£40,406.03	0.11

Yes if you look at this, clearly 100k a lot?

 

[Freefaller]

Yes if you look at this, clearly 100k a lot?

So back to your first post, what is your friend considering doing?

 

[Mrwong]

Yes if you look at this, clearly 100k a lot?

It not a lot of money. Yes it a high wage but it is not that high.
Only seems high because of wage suppression over the last 20 years.

 

[delta0]

It may be worthwhile just looking at full-time salaries. The UK average in 2020 was £38,600 https://uk.indeed.com/career-advice/pay-salary/average-uk-salary

With the average salary increase of around 6.4% last year and 7.3% this year that means the average is likely around £44k now.

 

[SupraWez]

With the average salary increase of around 6.4% last year and 7.3% this year that means the average is likely around £44k now.

Where are those average salary increases coming from, most folks are lucky to get 4-5% and I know of some getting 1-2% which is better than nowt but nothing like the ones quoted above.

 

[kai]

Take home on £100K is roughly £67K

Take home on "outlined average" is roughly £34K

£33K PA a year; £2,800 monthly difference. Hardly lifechanging; as outlined it will be relative (could potentially afford bigger house, 2 cars) plus you lose things like child benefit and loose child care hours

 

[aspiring]

Take home on £100K is roughly £67K

Take home on "outlined average" is roughly £34K

£33K PA a year; £2,800 monthly difference. Hardly lifechanging; as outlined it will be relative (could potentially afford bigger house, 2 cars) plus you lose things like child benefit and loose child care hours

£33k extra yearly is significant

 

[Murf]

It not a lot of money. Yes it a high wage but it is not that high.
Only seems high because of wage suppression over the last 20 years.

Percentile points from 1 to 99 for total income before and after tax

This table shows the percentile points of the income distribution, estimated from the Survey of Personal Incomes each year.

www.gov.uk

It is high. If you earn more than £91,800 you're in the top 4% of earners in this country. £104k for 3%, 128k for 2% and £183k for the top 1%.

I just can't understand how we're having a debate about whether £100k is a good salary or not. It completely boggles my mind.

 

[Mrwong]

Percentile points from 1 to 99 for total income before and after tax

This table shows the percentile points of the income distribution, estimated from the Survey of Personal Incomes each year.

www.gov.uk

It is high. If you earn more than £91,800 you're in the top 4% of earners in this country. £104k for 3%, 128k for 2% and £183k for the top 1%.

I just can't understand how we're having a debate about whether £100k is a good salary or not. It completely boggles my mind.

You know the highest earners don't pay tax or come up as listed in the percentage range you highlighted. They end up paying CGT or cooperation tax etc .

Good chance it more like 10% of the population that earn 80k plus in this country.

I would call £150k plus a high earner.
Anything below £40k is a mid to lower earner.

 

[aspiring]

You know the highest earners don't pay tax or come up as listed in the percentage range you highlighted. They end up paying CGT or cooperation tax etc .

Good chance it more like 10% of the population that earn 80k plus in this country.

I would call £150k plus a high earner.
Anything below £40k is a mid to lower earner.

so your saying 100k is mid earner?

 

[Richie]

Take home on £100K is roughly £67K

Take home on "outlined average" is roughly £34K

£33K PA a year; £2,800 monthly difference. Hardly lifechanging; as outlined it will be relative (could potentially afford bigger house, 2 cars) plus you lose things like child benefit and loose child care hours

Really? Effectively doubling the take home (£34k to £67k) is hardly life-changing?

 

[Murf]

You know the highest earners don't pay tax or come up as listed in the percentage range you highlighted. They end up paying CGT or cooperation tax etc .

Good chance it more like 10% of the population that earn 80k plus in this country.

I would call £150k plus a high earner.
Anything below £40k is a mid to lower earner.

And you calculated that using which average? Mean, median or mode?

Can you point me to the official statistics that explain your 'good chance' methodology?

 

[kai]

Percentile points from 1 to 99 for total income before and after tax

This table shows the percentile points of the income distribution, estimated from the Survey of Personal Incomes each year.

www.gov.uk

It is high. If you earn more than £91,800 you're in the top 4% of earners in this country. £104k for 3%, 128k for 2% and £183k for the top 1%.

I just can't understand how we're having a debate about whether £100k is a good salary or not. It completely boggles my mind.

Salary is subjective. What you consider a “good” salary might be totally polar to what others consider based on experience, industry etc. Against the average - yes (maybe), you could say it is good. However, this is a really bad example but go ask a CIO of a fortune 100 company if "100K" is a good salary.

Really? Effectively doubling the take home (£34k to £67k) is hardly life-changing?

An extra £2,500 a month is not life changing! it would help and make life easier and less stressful come monthly outgoing's but its certainly going to be life changing! You also get very quickly acclimatised to a wage and wonder how you managed previously

 

[Murf]

For clarity, here's the earnings curve from that data table on the link I posted, with MrWong's high earner estimate.

 

[Kenai]

An extra £2,500 a month is not life changing! it would help and make life easier and less stressful come monthly outgoing's but its certainly going to be life changing! You also get very quickly acclimatised to a wage and wonder how you managed previously

Spoken like someone who has clearly been earning well for long enough they've lost touch with the reality of life for an average earner.