QuoteOriginally posted by: mitQuoteOriginally posted by: HansiQuoteOriginally posted by: mitwhich currency is that ? GBP?Yes.then it isnt too bad isnt itMy flatmate has a PhD and earns less than £40K in London (in IT, not finance). It's not a lot of money after tax and, in her case, student loans. Of course she's underpaid but there are very few jobs around right now.

Quote My flatmate has a PhD and earns less than £40K in London (in IT, not finance). It's not a lot of money after tax and, in her case, student loans. Of course she's underpaid but there are very few jobs around right now. Someone earning £40k will not pay a lot of tax in the UK. His or her take home iwll be around £30k

30k in London is pissing in the wind. Especially if you have kids.Sadly I know this only too well.(...produces well handled empty starbucks cup)

QuoteOriginally posted by: neuroguy30k in London is pissing in the wind. Especially if you have kids.Sadly I know this only too well.(...produces well handled empty starbucks cup)I am assuming his flatmate doesn't have kids ... if she does she would also be entitled to child allowance and tax credits too... in which case her tax bill will almost be zero

Child benefit is £80 per month for first child plus £40 for the secondFirst child tax credit threshold is £26,000 (as of April this year)Second child tax credit threshold is £32,000 (as of April this year)Income tax:Personal allowance: £8,105Basic rate 20% up to £34,730.Below this rate pay tax on: £26,625 (bill: £5,325)Net income tax bill with 1 child: £4,3652 Children depends on tax credit status which is partially means tested but without tax credits (for which I do not qualify)net income tax is £3,885Lest we forget NI contributions (about £100 pcm), and Council tax (£285 pcm).Do get income tax relief on child care, so the above is a slight over estimate, but not my much (£200 per year maybe).

QuoteOriginally posted by: neuroguyChild benefit is £80 per month for first child plus £40 for the secondFirst child tax credit threshold is £26,000 (as of April this year)Second child tax credit threshold is £32,000 (as of April this year)Income tax:Personal allowance: £8,105Basic rate 20% up to £34,730.Below this rate pay tax on: £26,625 (bill: £5,325)Net income tax bill with 1 child: £4,3652 Children depends on tax credit status which is partially means tested but without tax credits (for which I do not qualify)net income tax is £3,885Lest we forget NI contributions (about £100 pcm), and Council tax (£285 pcm).Do get income tax relief on child care, so the above is a slight over estimate, but not my much (£200 per year maybe).so thats around 12% of your gross - that is not bad..

I was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.

QuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.

I would not disagree with that.By 'doing quite well' I read 'has a civilised, acceptable, standard of living'That's why I am a believer in some sort of welfare state. But she will not be buying any Porsches. Ergo if she wanted a Porsche, she had better go earn herself some more lucre.

QuoteOriginally posted by: daveangelQuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.Dave, you are a die hard UK apologist. It may be less of a shithole than many other places, but...

QuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.Dave, you are a die hard UK apologist. It may be less of a shithole than many other places, but...its God's country man... but seriously I am not an apologist I just don't like to see someone like your good self spitting on the hand that feeds him.

QuoteOriginally posted by: daveangelQuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.Dave, you are a die hard UK apologist. It may be less of a shithole than many other places, but...its God's country man... but seriously I am not an apologist I just don't like to see someone like your good self spitting on the hand that feeds him.Maybe it's the other way round Dave.

QuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.Dave, you are a die hard UK apologist. It may be less of a shithole than many other places, but...its God's country man... but seriously I am not an apologist I just don't like to see someone like your good self spitting on the hand that feeds him.Maybe it's the other way round Dave.well if you are unmarried with no kids then you are probably supporting the aforementioned flatmate..

QuoteOriginally posted by: daveangelQuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: EscapeArtist999QuoteOriginally posted by: daveangelQuoteOriginally posted by: neuroguyI was not passing judgement either way. Tax is a necessary fact of life in my opinion. But it is not negligible.after you factor in what the kids get in terms of free education plus free health care then on a net basis she will is doing quite well.Dave, you are a die hard UK apologist. It may be less of a shithole than many other places, but...its God's country man... but seriously I am not an apologist I just don't like to see someone like your good self spitting on the hand that feeds him.Maybe it's the other way round Dave.well if you are unmarried with no kids then you are probably supporting the aforementioned flatmate..Not much of a Randian are you then Dave....

QuoteOriginally posted by: daveangelQuote My flatmate has a PhD and earns less than £40K in London (in IT, not finance). It's not a lot of money after tax and, in her case, student loans. Of course she's underpaid but there are very few jobs around right now. Someone earning £40k will not pay a lot of tax in the UK. His or her take home will be around £30kYes £29.7K according to UK Salary Calculator but only £27.5K with Student Loans. I would regard 31% tax as a quite a lot for someone on a low wage personally. Yes OK I know repaying student loans isnt a "tax" but its deducted from your salary by the government.