Money Programme BBC2 9pm

mildred1978

JulieGeorgiana wrote: »

That sounds sensible, and you are very lucky, many people on here have much less.

Could you imagine having to cope with 2 adults, 1 child(9) and a baby on £1.7k per month?

It's what I do on a monthly basis (and we have 4 pets too!)

It does have some downsides. OH works away during the week so misses out on a lot of our son's firsts etc. even when he is at home he's on call 24/7 so family life gets disturbed a lot. And I've taken a big risk stepping off the career ladder during a recession.

roddydogs

gem68 wrote: »

its an average of £40,000 NET income,not gross!

So on a joint income of £68,000 you would have deductions of £28,000??

JulieGeorgiana

roddydogs wrote: »

So on a joint income of £68,000 you would have deductions of £28,000??

Yes, easily, don't forget your Tax Brackets... Look below:

£21,000
-£2,750 Tax (20%)
-£1,650 NI

TOTAL £16,600 NET

£47,000
-£15,800 Tax (40%)
-£3,700 NI

TOTAL £27,500 NET

TOTAL £44,100

And I haven't even taken off anything for Pensions!!!

roddydogs

Pensions are not "Deductions", they are your contribution to your old age.
And you forgetting personal allowances, you dont pay 40% on your gross wage, its tierd, and you wouldnt pay 20% of your Gross wage either.

JulieGeorgiana

roddydogs wrote: »

Pensions are not "Deductions", they are your contribution to your old age.

Agreed. But, still they are on £40k Net, and a Decent Pension would eat away £6k more from that!

roddydogs wrote: »

And you forgetting personal allowances, you dont pay 40% on your gross wage, its tierd, and you wouldnt pay 20% of your Gross wage either.

That's why I put it through my spreadsheet with the personal allowances taken into consideration, using the 'average' tax code.

roddydogs

No, they would have a gross income of £50,510 with those wages.
Pension contributions cannot be included as some people choose not to have a pension

JulieGeorgiana

roddydogs wrote: »

No, they would have a gross income of £50,510 with those wages.
Pension contributions cannot be included as some people choose not to have a pension

I didn't include pension, but I did edit my formula wrong for the personal 'allowance', so although I added it... I allowed too little!

I get £44k ish

gailey_2

JulieGeorgiana wrote: »

Yes, easily, don't forget your Tax Brackets... Look below:

£21,000
-£4,250 Tax (20%)
-£1,650 NI

TOTAL £15,100 NET

£47,000
-£18,750 Tax (40%)
-£3,700 NI

TOTAL £24,550 NET

TOTAL £39,650

And I haven't even taken off anything for Pensions!!!

You know looking at these figures if correct I can see why some get frustrated!

I mean you tell somone you earn 47k they think you rich!
but to have nearly half taken away in tax leaving 24 net does not seem to generous.

Hubbys on 37k have no idea how much his is net would have to hunt p60.
Problem is when you go above the 40 you start paying 40%tax
unsure if could get family credits on tht income
Think as a parent of 2 they would lose their child benefit next year as threshold 43kgross.worth £1500 pa
They would only be eligible for the lower amount of childcare vouchers through salary release its what we do roughly 160pounds cash gives £240 vouchers for nursery saving £80.

Just to point out now im not a daily mail reader.

But an unemployed couple with kids would I dare say get more as

when applying for benefits its a series of benefits and they dont consider means testing other benefits as income.
Have no idea how much they get but thinking

jsa
housing benefit-no rent
no council tax
full amount tax credits think nearly 7grand a year last time I checked
child benefit not huge amount still £1500 a year.
but all the extras they could get

free prsecriptions
school dinners my eldests primary is £40 a month

if rent and council tax covered they would just have to cover

phone-£30
mobile-£30
tv-if any £25-includes licence
gas/elect-£100
food £300
clothing £50
car costs if any estimate £250-£300 one car
xmas /birthdays £50
insurance £15

total under £1000 per month just to live
estimate monthly income to be over £1000

Can see how people get trapped in the system as compare their possible outgoings and income compared to net salary amount .

gailey_2

roddydogs wrote: »

Pensions are not "Deductions", they are your contribution to your old age.
And you forgetting personal allowances, you dont pay 40% on your gross wage, its tierd, and you wouldnt pay 20% of your Gross wage either.

yes I thourght its tiered so you dont pay 40%on whole 47k.
infact first £7k be tax free

JulieGeorgiana

gailey wrote: »

You know looking at these figures if correct I can see why some get frustrated!

I mean you tell somone you earn 47k they think you rich!
but to have nearly half taken away in tax leaving 24 net does not seem to generous.

Hubbys on 37k have no idea how much his is net would have to hunt p60.
Problem is when you go above the 40 you start paying 40%tax
unsure if could get family credits on tht income
Think as a parent of 2 they would lose their child benefit next year as threshold 43kgross.worth £1500 pa
They would only be eligible for the lower amount of childcare vouchers through salary release its what we do roughly 160pounds cash gives £240 vouchers for nursery saving £80.

Working Family Tax Credits is Changing in April. If you get the base rate only (£40 a month for 1 child) and you earn £26k you'll be losing this in April (£32,200 if you have 2 children). I was speaking to the Tax Credit people about this only last night!!