I think it was Rishi who suggested something like that and got an absolute grilling over it.
Tax in UK
- Thread starter aspiring
- Start date
I think it was Rishi who suggested something like that and got an absolute grilling over it.
Perhaps they could charge for missed appointments only and A&E visits that didn't meet A&E criteria.
Last edited:
Whilst you don't get any sympathy for the tax you pay when earning 100k+. A salary of 100k is not what it once was even 10/15 years ago, in terms of spending power and lifestyle although I guess partly that is still location dependent.
Yeah it is weird to say 100k is not good in current climate or even economy prior.
What do you mean earning before?
But you can easily save PA by pension contributions so take home is still a lot
Soldato
- Joined
- 23 Nov 2014
- Posts
- 7,961
- Location
- The Cronx
Up to 180 odd maybe, above that, with tax free contribution limits it’s not so clear cut. Plus you need a benefits scheme that will allow that size of contribution in the first place which is normally 20% tops monthly and up to 100% of bonus if you have a waiver scheme.
Still my point remains 100k is a good salary as is 125k regardless. It just does’t make you as rich as you expect.
Note “man maths method” used in that calculation.
Last edited:
Man of Honour
- Joined
- 5 Jun 2003
- Posts
- 91,549
- Location
- Falling...
The crazy thing is you'd earn more in a household if 2 of you earned 50k than if only 1 of you earned 100k.
Just look at the graphics posted here in this thread:
Assuming 6% pension contributions and no other tax complications.
If both of you earn 50k you end up with £5936 combined household income on a monthly basis.
But just one of you earning 100k you end up with £5287 monthly.
That's a heck of a difference. And this is what I mean by people not realising that 100k is actually all that magical.
50k is a very good salary too and as a family you'd be better off in some ways as you'd also get the tax free childcare and 30hrs free childcare.
Last edited:
£100k would not leave someone living in an average house in London with much spare. I live in a decent bit of London and “only” have £350k of mortgage left which I’m paying about £2k a month on but next year that rises to about £3k. That’s £36k out of the £64k (after tax and 5% for pension). I have living expenses of £24k for my entire family per year. This would leave a buffer of £4k.
One thing to balance the 60% tax at 100-125 is the majority of people that earn this amount of money are simple Joe high earners on PAYE.
It encourages you to put all over 100k in your pension to bring your earnings down and not pay tax on it.
Sure some people would want that money to spend, but most people find 100k+ more than enough to cover costs and have a relatively financial stress free life and know that they are building a good pension for retirement.
It encourages you to put all over 100k in your pension to bring your earnings down and not pay tax on it.
Sure some people would want that money to spend, but most people find 100k+ more than enough to cover costs and have a relatively financial stress free life and know that they are building a good pension for retirement.
Only.problem here is.private pensions could crash unlike NHS pension
Could live outside of London and save?
I think that anyone who doesn't have an income of at least £30K p.a. by the age of 25 should be executed because they're greedy scroungers and because they obviously choose to not have more money (since anyone can become rich if they just want to) and are thus heretics.
You don’t save that much until you get out of commutable distance. Then you have to put up with the commute costs. You probably could save a little if you do it right but it’s not really the solution. Anyway it’s the £100k example not getting you that far in and probably most places outside but near to London. A £350k mortgage is tiny for anywhere commutable to London so my example is not fully representative of all.
Last edited:
Of course. But that’s the game of life unfortunately.
Id rather have 1k added to my pension than 400 in my pocket though and spread it around a few investments.
I lot of 40 somethings even with good salaries are going to really feel a shock in retirement.
DB pensions are vulnerable to this. DC are not. These days most people are on DC.
As time goes on, future pensioners are going to be worse and worse.
Smaller house price rises
Fewer people mortgage/rent free
Lower/further away state pension
Smaller private pensions.
Its happening now, it's going to get worse every year.
Is it fair to say at some point there might be too many people in need of state support, country might not be able to afford it? Wonder how it will play out.
Are there really all these people earning £100-125k who can mitigate the personal tax allowance loss by increasing pension contribs? Kind of feels like that's an edge case and probably quite a short term, transitory state for those with the careers that get them to this point in the first place.
However I guess the middle will be squeezed more and more over time by dragging more folks into that band.
However I guess the middle will be squeezed more and more over time by dragging more folks into that band.
Last edited:
Soldato
- Joined
- 14 Jul 2005
- Posts
- 9,099
- Location
- Birmingham
It is not easy to get a job paying north of £50k.
Man of Honour
- Joined
- 5 Jun 2003
- Posts
- 91,549
- Location
- Falling...
My point was if there's 2 of you you're better off with 2x 50k salary than 1 of you at 100k. £700 is a heck of a difference.
I never consider single income as invariably you're either in a relationship or another situation.
50k as a sole earner is very tough depending on your situation. If you have no pension and no kids then it's pretty decent.
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.
Depends on your age, location, career etc...