"Oh hello!" isn't that what you said at the "economic urinal" when you were taking a peek? Keep it coming Damien! You're videos are both entertaining and educational.
One of the worst things we decided as a nation was that to discuss wages is taboo, all it does is give those paying the wages the freedom to pay you as little as they can by dividing us further.
I tell my colleagues what percent rise I got and what appraisal overall score. I don't tell them my actual salary, I did that a couple of times some years ago when they asked and things went quite sour on both occasions since they were paid a lot less for a similar grade. Unfortunately instead of going to their boss and asking for what I was on they took it out on me which was daft as I had no say in what they were paid.
@@owensmith7530 : Your assumption is that, they would go to the boss to find out equal pay. But that is putting the company into disrepute as well, right ? Cos it should be their HR to check that they don't hire somebody that is not on equal pay. Yes, there could be a time lapse factor, but this is something that they have to do... or to change the job title and make them either do a little bit more, or a little bit less work. So that it is compliant as well. What many people doesn't seem to be able to do, is to judge the workload well.. imho...
@user-lp5wb2rb3v that's more than enough to be comfortable for almost everyone. Anyone who's thinks otherwise shows the privilege of ppl thinking they deserve to be earning more or spending more without bringing anything to society. And bad money management
but why is it so low? I would of thought to be in the top 10% you should have a salary after tax of £75 000 , to earn or be in a profession which pays £65k isn't that hard to achieve in 5 years IMO
The £50-60k child benefit limit was introduced in 2013, so we've had a decade of fiscal drag there. One parent earning over £50k means it needs to start being repaid. £50k in 2013 is around £66k today. So we've gone from this affecting the top 10% to a much larger segment of the population (which I would figure out if I had more time today!)
If ur earning above the 50k, put the extra into ur employer pension. That way u can still claim child benefit and u dont pay 40% on the earnings above 50k also 👍
And you also have to remember that, since these kind of thing comes into place.. then what some actual companies do, is to split the job into 2 instead. So everybody still gets less !!! Sometimes, it doesn't work out as you assume as well. Despite this video is nothing but an actual mere report... but companies, do things in their own way sometimes? And many owners often refuses to merge etc. Hence... this is why.. lots of people have literally given up. Cos what they now do, is to have parent company and subsidiaries instead. So they would ALWAYS actually closes a subsidiary to protect themselves long term too. As well as to actually go along with a defence mechanism of letting go of around 200 in order to save the entire company for another 10 years or something. It's just... literally really tough these days.. and the companies aren't listening. After the austerity period, so many individuals went to open companies, and they never merged themselves though. Management buyout was the norm in the previous financial depression... but the 2008 crash just didn't make people see... and now, it's gone. Cos nobody could see the wood for the trees any more. It's too complex ???
@@DAN-bc5ev It really does. I repay all of my child benefit every year as someone who earns more than £60K - it's called the high income child benefit charge. It always feels unfair because although I am a 40% rate payer, my wife earns little and pays no tax. A couple who both earned £49K a year would be able to keep all of their child benefit, whereas I have to repay it, despite their household income being much higher. We only keep receiving it in order for my wife to receive national insurance credits.
It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.
Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401k it has yield nearly 1M after subsequent investments so far.
I've shuffled through a few experts in the past, but settled with LUCY ROSE CARTER. The strategy she use is recession-proof, more specifically profit-oriented , and most likely, you'd find her basic info on the net, she's a renowned advisor.
Making investments especially for a mast number of people involves a whole lot of risk and she recognises that and best believe this is the main reason for her long term success
I have turned over more than half MILLION working with LUCY ROSE CARTER on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.
Another great video, thanks Damo. Can we just take a moment to appreciate the increase in production quality your videos. Wow, just wow! Amazing production, lighting and editing.. brilliant work that makes an even more interesting watch ❤
Speaking of stealth tax, it's also worth saying that the tax bands shown at 6:15 miss the clawback that happens on your taxable allowance after 100K. Basically, your initial tax free earnings are removed at a rate of 1 quid for ever 2 earned, so the effective tax band in this is pretty brutal, and much higher than the 40% shown. Outside of that, there is a lot of of data and I think it's important and useful to see how you're doing. The trick is to do so and use the outcome. So not feel bitter if you aren't doing great, or complacent or a dick if you are. There are reasons, and steps you can take, to incrementally improve your situation, and if you want to use the fact you're in the bottom quartile for motivation, it can be a great motivator. I am fortunate enough to be in the top 2% of earners, in London, though until recently I had no real assets and so I'm a long way from being wealthy, and that combination of appreciation and gratitude for my position, whilst still wanting to achieve more, keeps more focused.
Also above £100k you instantly lose all child benefits on top of the effective 62% tax you will be paying. I use AVC’s to redirect my income above £100k into my pension tax free to avoid losing these benefits and not pay 62% tax but receive tax free income into my pension instead. AVC’s are great.
This isn't a comment about the substance of the video Damien - I just wanted to say how much I enjoy your presentational style. Funny, engaging and informative. Bravo!
Like you said, Its best not to look at others but improve your own self worth. Thanks for the update Damo. keep up the good work on the videos and podcasts. Keep T on his toes :)
First video I've watched from this channel but ALOT of informed useful info was gained from just this one video, definitely worth my sub- hope you keep releasing content of this calibre.
The top 10% of workers in the UK (the £64K) take home - after tax, pension @5% and student loan payment plan 1 = £3413.02 a month.... that doesn't seem that much, if you have high expenses going out and living in London, such as rent, or mortgage, car loan, travelcard, council tax, gas & electric, water rate, food etc
What's interesting is that if you remove London, the rest of the UK is around 10% poorer than Mississippi, the poorest US state, measured via GDP per capita at PPP
@rollojarvis6567 £64K would be a London Salary for a senior manager. Outside London, you will be looking between £60 - £55k starting for a senior management position
Also depend on how long you have had your mortgage. I've had mine for 10 years and it was 1k per month - fast forward 10 years and 1k aint that bad. Its tough if your a new buyer in todays enviroment.
you'd need to factor in pension differences as well in terms of 'total rewards' between public and private sector - a lot of public sector pension schemes are MUCH more generous than their private sector equivalents - which means 'total rewards' can be better even though public sector salaries have been held back...
Recently learned what lifestyle inflation is and that I'd repeatedly done it as I was fortunate enough to progress up to higher rate earner. Only in the past couple of years have we deflated everything but our house, started living well within our means and really started to build a foundation for our financial future, I honestly have yourself snd other UA-camrs to thank for the education and subsequent change of course. Lifestyle inflation is such an easy and common trap to slip into.
Great point at the end, you can do the same job you do now in a higher paying Industry, Finance, HR, Marketing, Transformation jobs exist regardless of industry the skill set is the same. It’s not too hard to move into but youll be on a different planet in terms of salary
NOTHER FISCAL drag is property prices and rent. Even 150k in London doesn't get you onto even vaguely nice house or area min for nice flat or basic house in London is 450k
I started working in 2002, I hated fiscal drag and Gordon Brown as a result as I crept up towards 40% - not much has changed in the last 20 years, they all play the same game - the big difference has been that due to slight tweaks in my job description and other benefits I have slowly edged up further, I don't complain - the biggest yearly pay rise I have seen was 2.5% which was this year - I don't want, nor will I ask for more since I am grateful to be where I am for what I do and importantly making sure I don't splurge what I do get by putting more into my pension (not a deduction, but an investment in my future) and rest is what it is...
i work for the civil service and earn well below the UK average of 30K. our government will do anything to keep wages low for the working class , tax tax tax
I used to work for the civil service when I first came to the UK. I was in scientific computing earning something like half what private sector would pay me but feeling like I was doing something meaningful. But life was becoming unaffordable year by year and I decided to prioritise financial security to relieve anxiety. Unfortunately, there is no one size fits all solution. My recommendation would be to go private if you can, the pressure on personal/household finances is insane right now and at that income level you’re not building generational wealth for your family’s future in an asset-based economy or any real pension savings. It sucks but it’s the sad reality. Even after going private in big tech on six figures I still can’t afford to get out of renting.
Well since there will be. GE before then it’s more than likely the Labour Party will decide if they stay frozen. It will be crazy to have the full state pension being above the personal tax allowance so expect something to change
@@simplydividendsTories and Labour literally are two sides of the same coin now. When labour does win the election I'll bet my mortgage any talk of pr soon disappears as well as both parties rely heavily on the us Vs them two party system
What would be interesting would be some measure of income taking into account the cost of living. Because housing in London is so expensive, I would expect that it’s actually not the most prosperous place to live as a median earner.
I was paying £1,250 a month just on rent in London eleven years ago. Now it's just £400 for rent and council tax just outside Birmingham City Centre so I agree, whilst it seems they earn more they don't get to keep it to spend as they wish - I certainly didn't and there's no way I could save for anything, let alone property!
London is divided between those who own property and those who rent it. Specifically, those who are mortgage free or who bought before the early millennium and those who bought after. The income generated by a London property alone is sufficient to finance a lifestyle outside London. Someone entering the London workforce without any connection to the city, who aspired to more than survival accommodation would need to earn an executive salary well into six figures.
I have seen in the past comparison tables that show relative quality of life in different places across the U.K. based on a spending amount of 1k. So how far your money goes basically I will try to dig them out and make a video
You are watching a finance channel and likely have one eye on your finances as a result this puts you so far ahead of 90% of people who do not give their finances a second thought.
I think the final point on cost of living needs to be made clearly. £27,000 a year in Leicester and you can probably rent your own place, save for a mortgage, have money for trips/meals out/car or whatever you like. The same in London would get you a house share with 6 other people, no savings and a constant need to budget for everything. Transport will be £1200 a year even if you only take public transport and your rent will be £800 to over £1000 a month for a house share. That's £13,000 to £14,000 of your £22,000 you take home (after tax) gone before you buy anything. So that's £800 a month for bills, phone, internet, food, clothing, kids, etc. all of which cost more in London. God forbid you need to buy something big. There are lots of rich people in London, but there are far far more in the bracket listed above.
Great video Damien! The point on fiscal drag was very eye opening, this never occurred to me. So if i understand correctly, The financial burden on individuals could have been alleviated if the government just adjusted tax bands to counteract the effects of inflation? But theyve chosen not to?! 😮
It certainly could have been reduced by increasing the tax bands inline with inflation allowing people to take more of their pay home. The government would argue though ‘this is inflationary’ as it gives people more money to spend. But let’s face it no one has spent as much money as the government in the last few years..
@@DamienTalksMoney that's actually insane to me that they didn't opt for this option in tandem with other methods of counteracting inflation. But as you say, they've been spending like crazy and look for as many ways as possible to continue doing that. Who cares how it affects the general public 🙄
@@DamienTalksMoney "The government would argue though ‘this is inflationary’ as it gives people more money to spend." It wouldn't just be inflationary to move the tax bands, it would be regressive too, because it benefits higher earners more than lower earners.
From 20 years old to 40 will for most people be the critical years in their career or business the next twenty years does not look promising for the uk Do you want to swim against the current , even if you are a great swimmer most of your effort will be wasted ,Go swim somwhere else where the currents and tides will support you In europe maybe Switzerland , Ireland Portugual , in Asia Malaysia , Vietnam ,Thailand , Indonesia ,More courageous Uruguay ,Parguay ,Belize , your ok with higher taxes but want good Government services maybe rural Canada , parts of the Usa too where incomes are way higher and you can buy land and property with a median Salary .
Interesting video D. As you point out this data is just for those on PAYE and that is not the total UK cohort. The government uses stats like “top 10%” to mislead people about how well of they are. Household income is ultimately what matters. A family with a single £60k gross earner is actually at the median in terms of household income. A very different story to the perception of what being a top 10% earner means in reality. People on PAYE are also the ones hammered by tax the most.
True, when people hear 100k a year they think its a lot of money but its not by the time u pay all its due to the government And if u add NINO and tax up u pay like 35% out of ur wage so it diminishes ur income really bad
@@mikel8850 The UK government does do this through the tax system. For example, earn £50k and you're taxed at 40% above this. Earn over £50k and child benefit begins to be taken away, with the government calling this the "high income benefit charge". This is despite the fact that £50k gross income at the household level is well under the median, and £60k is at the median I believe. High income it is not.
@@playthegame7445 People on PAYE are hammered by tax. If you add up all your direct and indirect taxes, a PAYE earner on £60k will be paying more in taxes (over 50%) to the government than they keep themselves. This includes income tax, national insurance, employers national insurance (hidden part of your salary), council tax, VAT, fuel tax etc. The government uses obfuscation of the many taxes to hide how much tax you are really paying.
I think you'll find £60k is a fair bit higher than median household income. "Median household disposable income in the UK was £32,300 in the financial year ending (FYE) 2022, a decrease of 0.6% from FYE 2021, based on estimates from the Office for National Statistics (ONS) Household Finances Survey." - www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2022
@@kenville1429 £60k is NOT median household income. www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2022
I think construction wages are going up for 3 main reasons. The first is a need for certain skilled workers as demand has gone all over the place in recent years and there is more need for technology skills in particular, which brings in the technology sector, which is also getting better than average pay and has the habit of moving jobs more regularly than workers other sectors. The second is the rise of an actual Union for construction consultants (this includes architects, engineers etc and anyone working for these companies). I don't know how much they have currently done, but that has got to get employers a little worried. The third is a mental health crisis in the construction sector. Given the stress and isolation that workers in all stages of construction went through during the pandemic that is not surprising. Add a cost of living crisis to this existing mental health crisis and people start looking for a way out of the industry and wages have to increase to both keep people and reduce the stress in the lives of staff. I am very glad that wages are going up and they need to go up even more. Inflation happened without wages going up for long enough for the rising wages cause inflation excuse to sound insulting.
Yes, there's an increased need for skilled workers, especially in BIM, digital construction, digital twins/IoT, the sector was lagging behind for the last decade has now been catching up with increased wages.
The other key fact you missed of the income figure was hours worked. Someone well paid working part could appear to be lower paid than they are. Likewise some pone low paid per hour but working more hours can appear better off. So many nuances with statistics and careful analysis is needed. Just come across your channel by the way, very well put over, so I’ve ticked the subscribe button and will see you again.
Look at junior doctors a standard 37.5hr contract on salary looks ok. But NHS managers schedule them in for 50-55 hrs weekends for no extra money hence why they complain. Ofcourse the NHS is perfect so must be Rishi’s fault.
this is the first video of yours ive watched and feel as if ive come away knowing something i hadn't before. id thin of myself as bit financially illiterate so im glad to have stumbled upon your channcel. thank you and enjoy the like !
It’s crazy and scary how we have just received a 26% rise over the next 3 and a half years at work which will result in a paycut if you take into account inflation.
27 earning £72k in London. it’s only now I feel like I can sensibly live here. Still have flatmates just a better flat, I can food shop and buy lunch without doing that math and buy higher quality items like clothes / homeware with a reasonable budget (not designer however!). This makes me sad cause I’m young, single and childless - can only imagine how others will manage in the years to come if incomes don’t rise
I have never understood why NIC are not factored in as this means an effective marginal rate for lower tax payers of 30%. You then factor in 8% for youngsters and they pay 38%. This is lunacy. I am nearing retirement but I feel for young graduates who are being screwed.
Great video Damien - many thanks. Some very pertinent points made towards the end too regarding what people can do to enhance earning. I'd add 'JOIN A UNION' to that as well because people are beginning to get a grip on the basic tenet of your video (i.e. that everyone is getting poorer and it's intentional). That's not any sort of rallying cry as I'm retired and am not a union member any more, but I do know that the downward spiral of earnings needs to be reversed, and while some individuals may be able to do it by relocating 50 miles away as you hinted, it is unreasonable for everyone to do that. A change in philosophy is needed.
1 day and over 114k views. Some video! Well done Damo! It is scary sh** as we have less than we had in 2008. What the future holds for us? Time will tell. 🖖🖖
Phew still where I was last year, this is basically how I measure whether I’m negotiating a good enough salary increase each year. Is that ONS pay per month stat gross or net? If it is net I’ve got some hustling to do next year. I’m in that horrible zone where you pay effective 60% tax because of the loss of personal allowance.
I wish people would stop striking for selfish pay gains and strike to address the cost of living and fiscal drag. Everyone would benefit and everyone would get behind it. Energy bills have doubled for example.
Just want to confirm that the figures in this ONS report are *before* income tax? Damien briefly mentions this I believe but I couldn't confirm it in writing from reading the ONS site. Perhaps I'm blind...
You should do a video on public sector pay vs private sector, but take public sector pensions into account. A public sector worker will complain about thier salary only being 30k, but thier pension is worth nearly the same again (if a private sector worker paid into a private pension to achieve the same pension outcome). We need overall remuneration totals to see the peoples real earnings. We could even go further and take the generous public sector annual leave days into account.
There are many people earning less than the median wage due to the minimum wage. However, the government seems to go by the median income when it comes to assessing earnings and assuming people are earning the median. If the minimum wage was increased to the median income then it would lift a lot more people out of poverty.
@@Longlostpuss There are many on 40 hour contracts who only get paid for 35 hrs (no pay for lunch breaks). For many working on minimum wage it's £18,964.40 per year before tax, national insurance and pension deductions.
Talk of people getting "Pushed into higher tax bands" is misleading. I know you know that people will only pay the higher rate of tax on the small part of their salary that is now in the higher band (if they were outside of it before their raise), but it doesn't come across like that to the listener. It also implies that keeping the band threshold the same only affects people who were previously outside of the band whereas it affects everyone who is in the band, old and new, equally.
Shocked to see I'm well within the top 10% I have no debt but my mortgage, drive an old car and an old van. However I do pay for the family of 3 while wife is back at uni as a student midwife. Baffled as to how a huge number of people my age in my area can afford paying bigger mortgages and 2 cars on finance per house hold. Surely we all can't be in the top 10% I genuinely worry thinking about how much debt some folf must be in.
It’s also important to note regarding the fiscal drag on taxes is that it affects people who are on lower tax bands who might get one-off bonuses or back pay. For example, NHS staff on minimum wage that recently got a pay rise and had it back dated, and it got taxed at 40% as it pushed them over the threshold for that month.
Was born and raised in Leicester. Recently finished uni and got a finance job in London. I don't think it would be possible to earn half as much if I stayed in Leicester.
if you are completely self reliant on your salary with no benefits and a family of 4 ,,4k a month after tax for outer London ,central London 10k a month no benefits after tax ,
It would be mega interesting to have stats on self-employed / personal company dividend income. It is shocking how wide the earning gap is. It seems our more socialistic infrastructures like NHS, education are using their monopolistic positions to depress wages. Teachers need much better pay.
The only way the economy works is through macro policies. The Tory small minded cost cutting everywhere just dries everything up and suddenly they've got nowhere left to pull back from. The problem with austerity is you eventually run out of other people's money.
I’m a software developer and slightly above average (top 25% I would guess). I get the feeling there a lot of less “esteemed” or “desirable” jobs earning just as much as I do. These days there are a lot of physically tough jobs with gruelling hours that no one wants.
Fellow developer here. Feels like a solid middle class job. Top 10% of national pay is achievable but much more than that (100k+) and opportunities seem sparse. Perhaps because few businesses have need of 30 year Vs 10 years of experience developers, so there's a plateau quite soon into career
Video for the wage slaves. While interesting, a better focus should be about how individuals can better their economic freedom day after day in absolute real terms
This fiscal drag hurts in multiple ways. I’ve had a 2% pay increase but this has resulted in me going into the 40% band, losing an extra £500 in tax free interest savings, losing my child benefits etc. I would have been better off having no pay rise at all!
@@slayerrocks2 Do you have any information on how that works? I’m currently putting 6% of my salary into my pension. Does that mean I can be 6% over the 50k limit before I pay 40% tax?
@@elliotg25 If salary sacrificed, effectively, yes. If you earn £60k you could put £10k into your pension, or 16.7%. This will mean you stay below the higher rate tax band. For benefits and loan/mortgage calculations, your salary is now below £50k.
I work in a supermarket... prices have gone up 40-50% on most products, though they have dropped a bit the last few weeks. As for those entering the 20% tax bracket people I work with just won't work the extra to avoid paying tax and pay hikes also affect state benefits, so again, to avoid losing money people will just cut hours to avoid losing hundreds of pounds from a small hourly increase. Funny how offering more money is actually stopping people from applying for a job... 🤔
@@kat_ie_9984 I have started doing that this year, not to avoid a higher tax bracket, just because I'm a lot older than them and want to save a bit of tax free money into a pension for when I can no longer work... I joke about going part time (down to 40 hours a week,) when I'm able to claim a pension!
I asking such a novice question which will show my poor understanding of maths. But what I would like to see and have explained is that even though average salary is roughly £27k, out of the 30 odd million workers on PAYE how many workers actually earn that and it not be inflated by some clever figure maneuvering by trying to say x amount of people on part time hours would actually be on a salary of £27k if working full time hours.
just saw a youtuber saying in a Video that his networth isn't a million, but he makes 50k/month. some people really think they are "poor" when they are in fact at the top end. But one of your first sentences is also important: Many of those that are in the top 5% of top PAYE earners compare themselves to people that are not PAYE and get more money/year. And everyone always compares themselves to their peers, within that group there is always someone earning more.
Hi damo, good video with amazing content as always. With that said I could be, being simple but I found this video pretty hard to understand, was the money of median salary before or after tax?
Inflation is stealth tax and holding Personal Tax allowance frozen is like double tax for everyone. It’s only this we pay vat 20% on inflated prices and even more money 💴 for government. UK is way overtaxed, tons of stealth taxes and super high rents. Highly overrated country
I’m a PAYE 1% with 16k pcm before tax. I’m 31yo. Let me tell you all, it’s not all it’s cracked up to be. I live in a 3 bed terrace house in a ghetto. I drive a 10 year old use estate car. I’m a couple years away from paying off my mortgage, and then it’ll be a few more years before I have the deposit to move to the type of house I feel I deserve. The goal posts have moved. If I was born 30 years earlier and earring the equivalent back then, I’d be able to afford a COMPLETELY different lifestyle, with a new paid off house every year. But as it stands, my ENTIRE INCOME, is swallowed by housing. And it forever will be. My generation have come in at the peak of the market, and I truly don’t expect to be able to profit from the kind of asset appreciate boomers have seen with their homes. I’ll be paying for the asset appeciation for them, but problem won’t see anything close to that myself.
@liamcullen1357 that’s what people with POOR money management skills like YOU would say. I on the other hand understand that cars are wealth killers. And it is prudent and wise no to blow my money on such a depreciating asset.
5% extra PAYE on the top 10% would cover the budget deficit , freezing the personal allowance is a really bad way of raising extra tax as effectively regressive since % effect on income is larger the less you earn.
another quality video Damien 👏🏽👏🏿👏🏼👏🏻👏🏾
Oh hello!
"Oh hello!" isn't that what you said at the "economic urinal" when you were taking a peek?
Keep it coming Damien! You're videos are both entertaining and educational.
Yoooo utube
Curious why the UA-cam account is on a British salary video.
Making sure you didn’t mention anything about the CBDC system and the globalist agenda to control and enslave everyone. Probably..
One of the worst things we decided as a nation was that to discuss wages is taboo, all it does is give those paying the wages the freedom to pay you as little as they can by dividing us further.
I couldn’t agree more with this. Not discussing only benefits employers who can under pay
What about jealousy and envy ?
They tell us not to talk about religion and politics either!! 😂
I tell my colleagues what percent rise I got and what appraisal overall score. I don't tell them my actual salary, I did that a couple of times some years ago when they asked and things went quite sour on both occasions since they were paid a lot less for a similar grade. Unfortunately instead of going to their boss and asking for what I was on they took it out on me which was daft as I had no say in what they were paid.
@@owensmith7530 : Your assumption is that, they would go to the boss to find out equal pay. But that is putting the company into disrepute as well, right ? Cos it should be their HR to check that they don't hire somebody that is not on equal pay. Yes, there could be a time lapse factor, but this is something that they have to do... or to change the job title and make them either do a little bit more, or a little bit less work. So that it is compliant as well. What many people doesn't seem to be able to do, is to judge the workload well.. imho...
£181,248 puts you in the top 1% and £64,920 puts you in the top 10%, according to the above video
Thank you. He waffles 😮
65k after tax is £46k, lets remove 6k for travel, 10k for food and probably 20k for a mortgage.
Thats barely enough to be comfortable -_-
@user-lp5wb2rb3v that's more than enough to be comfortable for almost everyone. Anyone who's thinks otherwise shows the privilege of ppl thinking they deserve to be earning more or spending more without bringing anything to society. And bad money management
but why is it so low? I would of thought to be in the top 10% you should have a salary after tax of £75 000 , to earn or be in a profession which pays £65k isn't that hard to achieve in 5 years IMO
@@tomharrold4388 He may waffle but he gives good detail and shows facts rather than making it his opinion or appearing that way
The £50-60k child benefit limit was introduced in 2013, so we've had a decade of fiscal drag there. One parent earning over £50k means it needs to start being repaid. £50k in 2013 is around £66k today. So we've gone from this affecting the top 10% to a much larger segment of the population (which I would figure out if I had more time today!)
If ur earning above the 50k, put the extra into ur employer pension. That way u can still claim child benefit and u dont pay 40% on the earnings above 50k also 👍
It doesn't need to be repaid! Why are you telling lies?
@@DAN-bc5ev what am I lying about? www.gov.uk/child-benefit-tax-charge
And you also have to remember that, since these kind of thing comes into place.. then what some actual companies do, is to split the job into 2 instead. So everybody still gets less !!! Sometimes, it doesn't work out as you assume as well. Despite this video is nothing but an actual mere report... but companies, do things in their own way sometimes? And many owners often refuses to merge etc. Hence... this is why.. lots of people have literally given up. Cos what they now do, is to have parent company and subsidiaries instead. So they would ALWAYS actually closes a subsidiary to protect themselves long term too. As well as to actually go along with a defence mechanism of letting go of around 200 in order to save the entire company for another 10 years or something. It's just... literally really tough these days.. and the companies aren't listening. After the austerity period, so many individuals went to open companies, and they never merged themselves though. Management buyout was the norm in the previous financial depression... but the 2008 crash just didn't make people see... and now, it's gone. Cos nobody could see the wood for the trees any more. It's too complex ???
@@DAN-bc5ev It really does. I repay all of my child benefit every year as someone who earns more than £60K - it's called the high income child benefit charge. It always feels unfair because although I am a 40% rate payer, my wife earns little and pays no tax. A couple who both earned £49K a year would be able to keep all of their child benefit, whereas I have to repay it, despite their household income being much higher. We only keep receiving it in order for my wife to receive national insurance credits.
The fiscal drag is horrific. Thank you for making more people aware of this, Damien. Great video as always 😊
Gordon Brown started doing this, as a way to avoid putting up income tax. And now the Tories carry it on.
It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.
Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401k it has yield nearly 1M after subsequent investments so far.
I've shuffled through a few experts in the past, but settled with LUCY ROSE CARTER. The strategy she use is recession-proof, more specifically profit-oriented , and most likely, you'd find her basic info on the net, she's a renowned advisor.
Making investments especially for a mast number of people involves a whole lot of risk and she recognises that and best believe this is the main reason for her long term success
I have turned over more than half MILLION working with LUCY ROSE CARTER on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.
How can I join in? I will be happy growing my money while giving a few of it away to charity, giving back is as good as receiving.
Another great video, thanks Damo. Can we just take a moment to appreciate the increase in production quality your videos. Wow, just wow! Amazing production, lighting and editing.. brilliant work that makes an even more interesting watch ❤
Thank you!
Speaking of stealth tax, it's also worth saying that the tax bands shown at 6:15 miss the clawback that happens on your taxable allowance after 100K. Basically, your initial tax free earnings are removed at a rate of 1 quid for ever 2 earned, so the effective tax band in this is pretty brutal, and much higher than the 40% shown.
Outside of that, there is a lot of of data and I think it's important and useful to see how you're doing. The trick is to do so and use the outcome. So not feel bitter if you aren't doing great, or complacent or a dick if you are. There are reasons, and steps you can take, to incrementally improve your situation, and if you want to use the fact you're in the bottom quartile for motivation, it can be a great motivator.
I am fortunate enough to be in the top 2% of earners, in London, though until recently I had no real assets and so I'm a long way from being wealthy, and that combination of appreciation and gratitude for my position, whilst still wanting to achieve more, keeps more focused.
It's high, but I wouldn't call it brutal since it only happens after 100k.
100k a year isn't that much, not when you look at what houses in London cost.
Also above £100k you instantly lose all child benefits on top of the effective 62% tax you will be paying. I use AVC’s to redirect my income above £100k into my pension tax free to avoid losing these benefits and not pay 62% tax but receive tax free income into my pension instead. AVC’s are great.
@@MrEdrftgyuji 100k is a lot considering 85% of the UK is outside London.
@@FriendlyFreeSounds You would still struggle to buy an average £300k home on £100k a year (or £60k after taxes).
This isn't a comment about the substance of the video Damien - I just wanted to say how much I enjoy your presentational style. Funny, engaging and informative. Bravo!
Lovely comment thank you so much
Like you said, Its best not to look at others but improve your own self worth. Thanks for the update Damo. keep up the good work on the videos and podcasts. Keep T on his toes :)
T keeps me on mine! I was with him this weekend in London.. I need a holiday now
@@DamienTalksMoney hahaha, Don't we all
First video I've watched from this channel but ALOT of informed useful info was gained from just this one video, definitely worth my sub- hope you keep releasing content of this calibre.
The top 10% of workers in the UK (the £64K) take home - after tax, pension @5% and student loan payment plan 1 = £3413.02 a month.... that doesn't seem that much, if you have high expenses going out and living in London, such as rent, or mortgage, car loan, travelcard, council tax, gas & electric, water rate, food etc
Basically where I’m at
What's interesting is that if you remove London, the rest of the UK is around 10% poorer than Mississippi, the poorest US state, measured via GDP per capita at PPP
@rollojarvis6567 £64K would be a London Salary for a senior manager. Outside London, you will be looking between £60 - £55k starting for a senior management position
Also depend on how long you have had your mortgage. I've had mine for 10 years and it was 1k per month - fast forward 10 years and 1k aint that bad. Its tough if your a new buyer in todays enviroment.
@froomer17 £1k a month really good, when do you have to remortgage?
Would love to see an analysis of the differences between private and public sector.
you'd need to factor in pension differences as well in terms of 'total rewards' between public and private sector - a lot of public sector pension schemes are MUCH more generous than their private sector equivalents - which means 'total rewards' can be better even though public sector salaries have been held back...
Recently learned what lifestyle inflation is and that I'd repeatedly done it as I was fortunate enough to progress up to higher rate earner. Only in the past couple of years have we deflated everything but our house, started living well within our means and really started to build a foundation for our financial future, I honestly have yourself snd other UA-camrs to thank for the education and subsequent change of course. Lifestyle inflation is such an easy and common trap to slip into.
Great point at the end, you can do the same job you do now in a higher paying Industry, Finance, HR, Marketing, Transformation jobs exist regardless of industry the skill set is the same. It’s not too hard to move into but youll be on a different planet in terms of salary
Exactly!
NOTHER FISCAL drag is property prices and rent. Even 150k in London doesn't get you onto even vaguely nice house or area min for nice flat or basic house in London is 450k
I started working in 2002, I hated fiscal drag and Gordon Brown as a result as I crept up towards 40% - not much has changed in the last 20 years, they all play the same game - the big difference has been that due to slight tweaks in my job description and other benefits I have slowly edged up further, I don't complain - the biggest yearly pay rise I have seen was 2.5% which was this year - I don't want, nor will I ask for more since I am grateful to be where I am for what I do and importantly making sure I don't splurge what I do get by putting more into my pension (not a deduction, but an investment in my future) and rest is what it is...
i work for the civil service and earn well below the UK average of 30K. our government will do anything to keep wages low for the working class , tax tax tax
I used to work for the civil service when I first came to the UK. I was in scientific computing earning something like half what private sector would pay me but feeling like I was doing something meaningful. But life was becoming unaffordable year by year and I decided to prioritise financial security to relieve anxiety.
Unfortunately, there is no one size fits all solution. My recommendation would be to go private if you can, the pressure on personal/household finances is insane right now and at that income level you’re not building generational wealth for your family’s future in an asset-based economy or any real pension savings. It sucks but it’s the sad reality.
Even after going private in big tech on six figures I still can’t afford to get out of renting.
Frezzing tax bands until 2028 is disgusting!
Our tax bands are why our economy is trash compared to the US.
Well since there will be. GE before then it’s more than likely the Labour Party will decide if they stay frozen.
It will be crazy to have the full state pension being above the personal tax allowance so expect something to change
Unfortunately I cannot see this changing regardless what party is elected next year 😮💨
@@simplydividendsAgreed sadly
@@simplydividendsTories and Labour literally are two sides of the same coin now. When labour does win the election I'll bet my mortgage any talk of pr soon disappears as well as both parties rely heavily on the us Vs them two party system
What would be interesting would be some measure of income taking into account the cost of living. Because housing in London is so expensive, I would expect that it’s actually not the most prosperous place to live as a median earner.
I was paying £1,250 a month just on rent in London eleven years ago. Now it's just £400 for rent and council tax just outside Birmingham City Centre so I agree, whilst it seems they earn more they don't get to keep it to spend as they wish - I certainly didn't and there's no way I could save for anything, let alone property!
London is divided between those who own property and those who rent it. Specifically, those who are mortgage free or who bought before the early millennium and those who bought after. The income generated by a London property alone is sufficient to finance a lifestyle outside London. Someone entering the London workforce without any connection to the city, who aspired to more than survival accommodation would need to earn an executive salary well into six figures.
I took a huge pay cut a few years ago to switch jobs. Meant I could move back to Glasgow. After travel and rent I had way more cash left in Glasgow.😅
@@ScotisticDad ..and Glasgow isn't a cheap city to buy in.
I have seen in the past comparison tables that show relative quality of life in different places across the U.K. based on a spending amount of 1k. So how far your money goes basically
I will try to dig them out and make a video
This was a fantastic video.
The way you exposed and explained that data couldn't have been clearer!
Well done 👏🏻
Thank you!
@@DamienTalksMoney It's two hours I have been watching all your videos now! You are REALLY good! 🙂
The intro to this video is pure poetry in motion 😂 kudos Damien
Thank you Richard
This channel is seriously underestimated. Here before 1M subs!
Thank you! Glad you enjoy the channel.
A lot of people earning £12575 or less are “directors” who take a non taxed wage and then take dividends on the rest which isn’t taxed at PAYE rates
Still taxed at the equivalent, dividend tax rates plus corporation tax is the same as income tax.
Perfect Sunday morning viewing! Now I need to work Sundays! Coz I'm poor!
You are watching a finance channel and likely have one eye on your finances as a result this puts you so far ahead of 90% of people who do not give their finances a second thought.
I then watched 'Richer than you think you are' and I wasn't! Time for a third job!
I think the final point on cost of living needs to be made clearly. £27,000 a year in Leicester and you can probably rent your own place, save for a mortgage, have money for trips/meals out/car or whatever you like.
The same in London would get you a house share with 6 other people, no savings and a constant need to budget for everything. Transport will be £1200 a year even if you only take public transport and your rent will be £800 to over £1000 a month for a house share. That's £13,000 to £14,000 of your £22,000 you take home (after tax) gone before you buy anything. So that's £800 a month for bills, phone, internet, food, clothing, kids, etc. all of which cost more in London. God forbid you need to buy something big.
There are lots of rich people in London, but there are far far more in the bracket listed above.
Very good video Damien, Thank you.
Thank you really appreciate you taking the time to watch and comment.
You didn't show the threshold for loss of personal allowance at £100,000 has also been frozen, and that is also part of fiscal drag.
A deliberate mistake? Tax bands are already progressive, bar the effective 60% tax and 100 to 125k, didn't suit his arguement
Great video Damien! The point on fiscal drag was very eye opening, this never occurred to me. So if i understand correctly, The financial burden on individuals could have been alleviated if the government just adjusted tax bands to counteract the effects of inflation? But theyve chosen not to?! 😮
It certainly could have been reduced by increasing the tax bands inline with inflation allowing people to take more of their pay home. The government would argue though ‘this is inflationary’ as it gives people more money to spend. But let’s face it no one has spent as much money as the government in the last few years..
@@DamienTalksMoney that's actually insane to me that they didn't opt for this option in tandem with other methods of counteracting inflation. But as you say, they've been spending like crazy and look for as many ways as possible to continue doing that. Who cares how it affects the general public 🙄
@@DamienTalksMoney "The government would argue though ‘this is inflationary’ as it gives people more money to spend."
It wouldn't just be inflationary to move the tax bands, it would be regressive too, because it benefits higher earners more than lower earners.
Great content Damian 👍🏼
Thank you!
From 20 years old to 40 will for most people be the critical years in their career or business the next twenty years does not look promising for the uk
Do you want to swim against the current , even if you are a great swimmer most of your effort will be wasted ,Go swim somwhere else where the currents and tides will support you
In europe maybe Switzerland , Ireland Portugual , in Asia Malaysia , Vietnam ,Thailand , Indonesia ,More courageous Uruguay ,Parguay ,Belize , your ok with higher taxes but want good
Government services maybe rural Canada , parts of the Usa too where incomes are way higher and you can buy land and property with a median Salary .
Interesting video D. As you point out this data is just for those on PAYE and that is not the total UK cohort. The government uses stats like “top 10%” to mislead people about how well of they are. Household income is ultimately what matters. A family with a single £60k gross earner is actually at the median in terms of household income. A very different story to the perception of what being a top 10% earner means in reality. People on PAYE are also the ones hammered by tax the most.
True, when people hear 100k a year they think its a lot of money but its not by the time u pay all its due to the government
And if u add NINO and tax up u pay like 35% out of ur wage so it diminishes ur income really bad
@@mikel8850 The UK government does do this through the tax system. For example, earn £50k and you're taxed at 40% above this. Earn over £50k and child benefit begins to be taken away, with the government calling this the "high income benefit charge". This is despite the fact that £50k gross income at the household level is well under the median, and £60k is at the median I believe. High income it is not.
@@playthegame7445 People on PAYE are hammered by tax. If you add up all your direct and indirect taxes, a PAYE earner on £60k will be paying more in taxes (over 50%) to the government than they keep themselves. This includes income tax, national insurance, employers national insurance (hidden part of your salary), council tax, VAT, fuel tax etc. The government uses obfuscation of the many taxes to hide how much tax you are really paying.
I think you'll find £60k is a fair bit higher than median household income. "Median household disposable income in the UK was £32,300 in the financial year ending (FYE) 2022, a decrease of 0.6% from FYE 2021, based on estimates from the Office for National Statistics (ONS) Household Finances Survey." - www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2022
@@kenville1429 £60k is NOT median household income. www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/householddisposableincomeandinequality/financialyearending2022
Your content has always been informative and spot on. I just wanted to say kudos on the noticeable improvement in production quality!
some of us make £1700 a month paying £1000 rent. London is not for the working class
First video of you’re I’ve ever watched, very impressed,you’ve got a new sub
I think construction wages are going up for 3 main reasons. The first is a need for certain skilled workers as demand has gone all over the place in recent years and there is more need for technology skills in particular, which brings in the technology sector, which is also getting better than average pay and has the habit of moving jobs more regularly than workers other sectors. The second is the rise of an actual Union for construction consultants (this includes architects, engineers etc and anyone working for these companies). I don't know how much they have currently done, but that has got to get employers a little worried. The third is a mental health crisis in the construction sector. Given the stress and isolation that workers in all stages of construction went through during the pandemic that is not surprising. Add a cost of living crisis to this existing mental health crisis and people start looking for a way out of the industry and wages have to increase to both keep people and reduce the stress in the lives of staff.
I am very glad that wages are going up and they need to go up even more.
Inflation happened without wages going up for long enough for the rising wages cause inflation excuse to sound insulting.
Yes, there's an increased need for skilled workers, especially in BIM, digital construction, digital twins/IoT, the sector was lagging behind for the last decade has now been catching up with increased wages.
PAYE is Pay As You Earn for those might not know.
Thanks for the breakdown into usable chunks :)
Stealth tax has significantly damaged the UK workforce. When was this last changed really?
Don't forget national insurance! Another tax on the employee and the employer.
Median wage in Switzerland is close to 6000£. Sounds nice but since everything is so expensive it's almost impossible to buy a flat with this salary.
Compare our wages to those in the US and it's pretty bad too, but like us they have high earners and low earners too..
Wages in the US are some of the highest in the world
The other key fact you missed of the income figure was hours worked. Someone well paid working part could appear to be lower paid than they are. Likewise some pone low paid per hour but working more hours can appear better off.
So many nuances with statistics and careful analysis is needed.
Just come across your channel by the way, very well put over, so I’ve ticked the subscribe button and will see you again.
Look at junior doctors a standard 37.5hr contract on salary looks ok. But NHS managers schedule them in for 50-55 hrs weekends for no extra money hence why they complain. Ofcourse the NHS is perfect so must be Rishi’s fault.
this is the first video of yours ive watched and feel as if ive come away knowing something i hadn't before. id thin of myself as bit financially illiterate so im glad to have stumbled upon your channcel. thank you and enjoy the like !
Brilliant video, well explained.
It’s crazy and scary how we have just received a 26% rise over the next 3 and a half years at work which will result in a paycut if you take into account inflation.
Good video very well broken down
Glad you liked it!
thanks man, so informative!!!
27 earning £72k in London. it’s only now I feel like I can sensibly live here. Still have flatmates just a better flat, I can food shop and buy lunch without doing that math and buy higher quality items like clothes / homeware with a reasonable budget (not designer however!). This makes me sad cause I’m young, single and childless - can only imagine how others will manage in the years to come if incomes don’t rise
What do you do?
I have never understood why NIC are not factored in as this means an effective marginal rate for lower tax payers of 30%. You then factor in 8% for youngsters and they pay 38%. This is lunacy. I am nearing retirement but I feel for young graduates who are being screwed.
If your pay goes up, you will pay a higher proportion in tax regardless of whether you "go into a higher band."
New camera? looks crispy. Another good video mate
You really do make some great content mate. Thank you
Fantastic video as always!
Great video Damien - many thanks. Some very pertinent points made towards the end too regarding what people can do to enhance earning. I'd add 'JOIN A UNION' to that as well because people are beginning to get a grip on the basic tenet of your video (i.e. that everyone is getting poorer and it's intentional). That's not any sort of rallying cry as I'm retired and am not a union member any more, but I do know that the downward spiral of earnings needs to be reversed, and while some individuals may be able to do it by relocating 50 miles away as you hinted, it is unreasonable for everyone to do that. A change in philosophy is needed.
Not a single thumbs up! Does this mean nobody thinks joining a union is a good idea for ensuring pay is kept where it should be?
I earn over 50k and i feel so stretched.
Mate it is crazy isn't it, so eye opening as 50% of people in the UK are below these medians.
Great video sir !
1 day and over 114k views. Some video! Well done Damo! It is scary sh** as we have less than we had in 2008. What the future holds for us? Time will tell. 🖖🖖
Phew still where I was last year, this is basically how I measure whether I’m negotiating a good enough salary increase each year.
Is that ONS pay per month stat gross or net? If it is net I’ve got some hustling to do next year.
I’m in that horrible zone where you pay effective 60% tax because of the loss of personal allowance.
Holding the tax band is honestly disgusting. Pay tax on pay, then pay tax on anything you purchase with your taxed pay just mental
I wish people would stop striking for selfish pay gains and strike to address the cost of living and fiscal drag.
Everyone would benefit and everyone would get behind it.
Energy bills have doubled for example.
Oh my god that intro 😂 love you
Hahah yes! Love you to
true the tax band need changing and updating
Just want to confirm that the figures in this ONS report are *before* income tax? Damien briefly mentions this I believe but I couldn't confirm it in writing from reading the ONS site. Perhaps I'm blind...
You should do a video on public sector pay vs private sector, but take public sector pensions into account. A public sector worker will complain about thier salary only being 30k, but thier pension is worth nearly the same again (if a private sector worker paid into a private pension to achieve the same pension outcome). We need overall remuneration totals to see the peoples real earnings. We could even go further and take the generous public sector annual leave days into account.
There are many people earning less than the median wage due to the minimum wage. However, the government seems to go by the median income when it comes to assessing earnings and assuming people are earning the median. If the minimum wage was increased to the median income then it would lift a lot more people out of poverty.
Median is skewed by outliers at the top end, so the true average is likely to be lower, I'm guessing it's around £28,000 for a typical 35 hour week.
@@Longlostpuss There are many on 40 hour contracts who only get paid for 35 hrs (no pay for lunch breaks). For many working on minimum wage it's £18,964.40 per year before tax, national insurance and pension deductions.
For me, knowing that I'm in the top 10% of wages is depressing because I don't feel like I'm making a crazy amount of money
The 'crazy' money starts when you're in the top 3% of earners.
I felt wealthier working as a pizza delivery driver in 2009 than I do today earning 3x as much as an engineering tech.
Excellent video thank you
Glad you enjoyed it thank you for watching!
Talk of people getting "Pushed into higher tax bands" is misleading. I know you know that people will only pay the higher rate of tax on the small part of their salary that is now in the higher band (if they were outside of it before their raise), but it doesn't come across like that to the listener. It also implies that keeping the band threshold the same only affects people who were previously outside of the band whereas it affects everyone who is in the band, old and new, equally.
My income is at £48,900 now so fiscal drag is on the horizon as a real issue for me personally.
You can’t just move to a higher pay area to earn more, because it may cost more to live there.
Shocked to see I'm well within the top 10% I have no debt but my mortgage, drive an old car and an old van. However I do pay for the family of 3 while wife is back at uni as a student midwife. Baffled as to how a huge number of people my age in my area can afford paying bigger mortgages and 2 cars on finance per house hold. Surely we all can't be in the top 10%
I genuinely worry thinking about how much debt some folf must be in.
It’s also important to note regarding the fiscal drag on taxes is that it affects people who are on lower tax bands who might get one-off bonuses or back pay. For example, NHS staff on minimum wage that recently got a pay rise and had it back dated, and it got taxed at 40% as it pushed them over the threshold for that month.
They will get that back in a rebate, surely?!
Was born and raised in Leicester. Recently finished uni and got a finance job in London. I don't think it would be possible to earn half as much if I stayed in Leicester.
Good video Damo thank you. Only think i didnt find clear was "median weekly earnings", are those gross or net figures?
These are gross figures, I am sorry i did not make this clearer
if you are completely self reliant on your salary with no benefits and a family of 4 ,,4k a month after tax for outer London ,central London 10k a month no benefits after tax ,
Fiscal drag…. Those sneaky b**tards. Thanks Damo ❤
Such a sneaky thing isn't it... Not spoken about enough.
AND WE WON THE PREMIER LEAGUE ON THE LOWEST MEDIAN INCOME
Fiscal drag is so frustrating. HMRC pushed self assessment to £150k yet brackets remain the same.
It would be mega interesting to have stats on self-employed / personal company dividend income. It is shocking how wide the earning gap is. It seems our more socialistic infrastructures like NHS, education are using their monopolistic positions to depress wages. Teachers need much better pay.
salary ~8k, dividends ~74k. You have to ask my accountants why they choose this amount, i dont kno😄
Wtf you on about, teachers get paid well.
Wage growth cant cause inflation. The creation of currency allows this.
The only way the economy works is through macro policies. The Tory small minded cost cutting everywhere just dries everything up and suddenly they've got nowhere left to pull back from. The problem with austerity is you eventually run out of other people's money.
I’m a software developer and slightly above average (top 25% I would guess). I get the feeling there a lot of less “esteemed” or “desirable” jobs earning just as much as I do. These days there are a lot of physically tough jobs with gruelling hours that no one wants.
Fellow developer here. Feels like a solid middle class job. Top 10% of national pay is achievable but much more than that (100k+) and opportunities seem sparse. Perhaps because few businesses have need of 30 year Vs 10 years of experience developers, so there's a plateau quite soon into career
Video for the wage slaves. While interesting, a better focus should be about how individuals can better their economic freedom day after day in absolute real terms
This fiscal drag hurts in multiple ways.
I’ve had a 2% pay increase but this has resulted in me going into the 40% band, losing an extra £500 in tax free interest savings, losing my child benefits etc.
I would have been better off having no pay rise at all!
Put enough in your pension to bring you back beneath the threshold.
@@slayerrocks2 Do you have any information on how that works? I’m currently putting 6% of my salary into my pension. Does that mean I can be 6% over the 50k limit before I pay 40% tax?
@@elliotg25 If salary sacrificed, effectively, yes.
If you earn £60k you could put £10k into your pension, or 16.7%.
This will mean you stay below the higher rate tax band.
For benefits and loan/mortgage calculations, your salary is now below £50k.
@@slayerrocks2 Thank you!
Stick it in your pension or buy added holidays.
Good video
Glad you enjoyed
I work in a supermarket... prices have gone up 40-50% on most products, though they have dropped a bit the last few weeks. As for those entering the 20% tax bracket people I work with just won't work the extra to avoid paying tax and pay hikes also affect state benefits, so again, to avoid losing money people will just cut hours to avoid losing hundreds of pounds from a small hourly increase. Funny how offering more money is actually stopping people from applying for a job... 🤔
They're dumb then you can put the extra into pension and pay no tax
@@kat_ie_9984 I have started doing that this year, not to avoid a higher tax bracket, just because I'm a lot older than them and want to save a bit of tax free money into a pension for when I can no longer work... I joke about going part time (down to 40 hours a week,) when I'm able to claim a pension!
@@kat_ie_9984 You do realise that your pension is a taxable income right?
@@thedvdaddy depends how much you take out and you're more than likely not going to take out more than the 20% bracket at retirement age
Ah that's good to know thanks; I'll take a look at this.
I am from leicester and i can confirm that i was not happy
I asking such a novice question which will show my poor understanding of maths.
But what I would like to see and have explained is that even though average salary is roughly £27k, out of the 30 odd million workers on PAYE how many workers actually earn that and it not be inflated by some clever figure maneuvering by trying to say x amount of people on part time hours would actually be on a salary of £27k if working full time hours.
just saw a youtuber saying in a Video that his networth isn't a million, but he makes 50k/month. some people really think they are "poor" when they are in fact at the top end.
But one of your first sentences is also important: Many of those that are in the top 5% of top PAYE earners compare themselves to people that are not PAYE and get more money/year. And everyone always compares themselves to their peers, within that group there is always someone earning more.
Hi damo, good video with amazing content as always.
With that said I could be, being simple but I found this video pretty hard to understand, was the money of median salary before or after tax?
@damo sorry just seen your pinned comment
Sorry that wasn’t clear enough! And don’t blame yourself a few people asked so I wasn’t clear enough and will make sure I am in the future
The fiscal drag, stagnation of gdp/capita and inflation are a horrible mix... It feels like equality will be achieved by making everyone poor
Inflation is stealth tax and holding Personal Tax allowance frozen is like double tax for everyone. It’s only this we pay vat 20% on inflated prices and even more money 💴 for government. UK is way overtaxed, tons of stealth taxes and super high rents. Highly overrated country
I’m a PAYE 1% with 16k pcm before tax. I’m 31yo. Let me tell you all, it’s not all it’s cracked up to be. I live in a 3 bed terrace house in a ghetto. I drive a 10 year old use estate car. I’m a couple years away from paying off my mortgage, and then it’ll be a few more years before I have the deposit to move to the type of house I feel I deserve. The goal posts have moved. If I was born 30 years earlier and earring the equivalent back then, I’d be able to afford a COMPLETELY different lifestyle, with a new paid off house every year. But as it stands, my ENTIRE INCOME, is swallowed by housing. And it forever will be. My generation have come in at the peak of the market, and I truly don’t expect to be able to profit from the kind of asset appreciate boomers have seen with their homes. I’ll be paying for the asset appeciation for them, but problem won’t see anything close to that myself.
If you earn £190k a year and you’re driving a 10 year old car then I think you’re doing something very wrong
@liamcullen1357 that’s what people with POOR money management skills like YOU would say. I on the other hand understand that cars are wealth killers. And it is prudent and wise no to blow my money on such a depreciating asset.
Theconversation just did a report on this and how the top10 are worried about life.
I thought that the income tax was anything over 50k u pay 40% stopping 45k earners taking home more than 50k earners. Am I wrong?
5% extra PAYE on the top 10% would cover the budget deficit , freezing the personal allowance is a really bad way of raising extra tax as effectively regressive since % effect on income is larger the less you earn.
watching from leicester
Funny as fook when you said "you still clicked on the video didnt you"😂