Is 27K annual salary a low income which won'e help one through recession?

Pee

It depends where you are living. In rural areas, you are doing very well if you are earning £27k as a single person. That seems a fairly basic salary for people in London.

I suppose the more you are earning, the more you spend, but the more you spend on things that aren't essential and which you can therefore cut out during the recession.

mrposhman

IMO, all averages should exclude london and london should effectively has its own tax rate.

When I moved to London (having previously been in Sheffield) my disposable income reduced despite my gross salary increasing due a massive hike in cost of living. Take for example myself anfd my friend were paying rent in Sheffield on a very very nice 2 bed flat in the city centre, we had 3 bathrooms, an onsuite each and another bathroom and we were paying £700 a month for this so therefore £350 each.

When I moved to London I house shared with 3 others in some grotty house with rubbish heating and paid £450.

I now live with my partner and our daughter in a 1 bed flat and earn more than the 80th percentile line but don't feel well off at all. We barely scrape by each month, regularly overspending and its such a struggle to get by in london with what most would deem a good salary yet its far from that in London.

I now cycle to work and make my own sandwiches which has released some of the pressure but I'm not in a position to save at the moment.

Pssst

Alan_M wrote: »

My thought's too, actually I was surprised where I am.

I'm slightly different in so much as I own the company so I look on salary as something that costs my business money. In that respect I simply won't pay myself to a level that incurs 40% income tax, I consider it a waste of money. I'd have though that made me a mid earner, but I'm further up the list than I thought I would be.

Hmm..I'm guessing the ONS states are actually for employees rather than self employed? I am though,as you say,quite surprised at the stats as i dont actually feel that well off so my sympathies lie with those who are further down line and i guess i should count my blessings.

As you say,i would not consider upping my income as i wouldnt want to encroach on the 40% tax band and therefore work for half pay...sheer folly IMHO.

wymondham

Irrelevent how much you earn - it's what your outgoings are that make the difference!!

Pssst

wymondham wrote: »

Irrelevent how much you earn - it's what your outgoings are that make the difference!!

Its the outgoings that have put the country where it is. Perhaps the ONS could collect stats on how many people are in a negative situation 30 days after pay day and also the socio economic profiles of these people?

chewmylegoff

mr_jetlag wrote: »

Also, interesting this:

The median annual pay in the City is 48,192
The mean annual pay in the City is 78,890

Which shows the City of London is the most unequal employer in terms of the gap in compensation. A few millionaire city boys supported by an army of admin. :rolleyes:

this statistic is somewhat misleading in that it applies to people living in the city of london, not people working in the city of london. basically, there's a couple of council estates, and anyone else living there is super rich.

joolsybools

I live and work in London and I'm not super-rich (wish I was tho lol!) nor do I live on a council estate.

ninky_2

joolsybools wrote: »

I live and work in London and I'm not super-rich (wish I was tho lol!) nor do I live on a council estate.

i think you misunderstood. poster is referring to the the city of london (as in the small area around the bank of england etc) rather than city of london (as in greater london including areas like westminster, wandsworth, haringey etc)

blunt_crayon

am i right in thinking that the 40% tax applies to everything over the threshold, which i think is about 36k? it doesn't apply to the whole salary once you cross that threshold, like stamp duty does?

ninky_2

blunt_crayon wrote: »

am i right in thinking that the 40% tax applies to everything over the threshold, which i think is about 36k? it doesn't apply to the whole salary once you cross that threshold, like stamp duty does?

absolutely. wouldn't make sense otherwise.