Mentally Struggling with Tax and Student Loans

lixhul

I have worked incredibly hard and sacrificed free time studying books and taking risks to earn £47,500 annually.

From that, I receive £2,300 a month, meaning my deductions are £1,700 a month in tax and UK requirements, or 42% deduction.

Income tax: £582
National insurance: £232.83
Student Loans: £300.00
Pension: £171.92
CSA: £458.92

I am financially "okay" but not at the level I thought I would be. The student loan is absolutely killing me, and it'll never be paid off. I have then got the usual council tax, mortgage, energy, petrol and so on. I'm left with very little and I feel I am working for others now and not much for me.

I have a plan 2 and a postgraduate loan, and they take £300 flat a month from my salary. CSA also is what it is, although I disagree with it.

I am considering moving country. I should be able to make sound investments on this salary, but I can't, and I'm tired constantly from the work. Others who don't even work have more net than me each month and I supposed to be in the top 20% on this. I am slowly getting more depressed having a false sense of a quality life and I don't believe work pays anymore.

Is there anything I can do to reduce this level automatically going out each month? It feels more and more like a pointless country to work in. Ideally if anything, that student loan to be reduced would be great.

If moving is the only option is there a recommendation?

Thank you. 

swingaloo

You asked the same question  on here 12 months ago. But you also said then that you had £25.000 of debt so if that is still the same its probably costing you a fortune in payments for those. 

penners324

Challenge the csa payment. Seems very high based on your salary 

silvercar

Moving country won't make the student loan go away, it will be calculated based on the standard of living/ earning expectations of the country you will be living in. You can find the rates online.

In the UK, the rates for plan 2 is 9% of everything above £27,295 and for your post grad loan it is 6% of everything above £21,000. As your salary changes, so will the amount you payback - there is no flat rate as such.

chrisbur

penners324 said:

Challenge the csa payment. Seems very high based on your salary 

The amount payable will vary depending on circumstances but this figure looks about right for one child under some circumstances.

https://www.gov.uk/calculate-child-maintenance

MattMattMattUK

lixhul said:

I have worked incredibly hard and sacrificed free time studying books and taking risks to earn £47,500 annually.

From that, I receive £2,300 a month, meaning my deductions are £1,700 a month in tax and UK requirements, or 42% deduction.

Income tax: £582
National insurance: £232.83
Student Loans: £300.00
Pension: £171.92
CSA: £458.92

I am financially "okay" but not at the level I thought I would be. The student loan is absolutely killing me, and it'll never be paid off. I have then got the usual council tax, mortgage, energy, petrol and so on. I'm left with very little and I feel I am working for others now and not much for me.

I have a plan 2 and a postgraduate loan, and they take £300 flat a month from my salary. CSA also is what it is, although I disagree with it.

I am considering moving country. I should be able to make sound investments on this salary, but I can't, and I'm tired constantly from the work. Others who don't even work have more net than me each month and I supposed to be in the top 20% on this. I am slowly getting more depressed having a false sense of a quality life and I don't believe work pays anymore.

Is there anything I can do to reduce this level automatically going out each month? It feels more and more like a pointless country to work in. Ideally if anything, that student loan to be reduced would be great.

If moving is the only option is there a recommendation?

Thank you. 

I think you need to get a bit of perspective on this, it is not really a "42% deduction". 
You have to pay tax, the same as the rest of us do, that deduction is 20.6% of your income. 
The loan is something you chose to take out, which you took out as trade off on future earnings being higher. (7.6%)
The Pension is something you are choosing to contribute to, saving for retirement, you could opt out, though that would not be sensible. (4.3%)
The CSA is you rightly supporting your child, if you child was living with you then they would almost certainly be costing you more than the CSA payments as the CSA woefully under calculates the cost of raising a child. (11.6%)

Child maintenance is not a "UK requirement" and the fact that you even thinking that you can evade supporting your child by leaving the country is wrong. Paying tax is not wrong, paying into a pension is not wrong, repaying a student loan that you chose to take out to increase your income is not wrong. 

This is an issue with your attitude rather than an issue with outgoings. 

lixhul

MattMattMattUK said:

lixhul said:

I have worked incredibly hard and sacrificed free time studying books and taking risks to earn £47,500 annually.

From that, I receive £2,300 a month, meaning my deductions are £1,700 a month in tax and UK requirements, or 42% deduction.

Income tax: £582
National insurance: £232.83
Student Loans: £300.00
Pension: £171.92
CSA: £458.92

I am financially "okay" but not at the level I thought I would be. The student loan is absolutely killing me, and it'll never be paid off. I have then got the usual council tax, mortgage, energy, petrol and so on. I'm left with very little and I feel I am working for others now and not much for me.

I have a plan 2 and a postgraduate loan, and they take £300 flat a month from my salary. CSA also is what it is, although I disagree with it.

I am considering moving country. I should be able to make sound investments on this salary, but I can't, and I'm tired constantly from the work. Others who don't even work have more net than me each month and I supposed to be in the top 20% on this. I am slowly getting more depressed having a false sense of a quality life and I don't believe work pays anymore.

Is there anything I can do to reduce this level automatically going out each month? It feels more and more like a pointless country to work in. Ideally if anything, that student loan to be reduced would be great.

If moving is the only option is there a recommendation?

Thank you. 

I think you need to get a bit of perspective on this, it is not really a "42% deduction". 
You have to pay tax, the same as the rest of us do, that deduction is 20.6% of your income. 
The loan is something you chose to take out, which you took out as trade off on future earnings being higher. (7.6%)
The Pension is something you are choosing to contribute to, saving for retirement, you could opt out, though that would not be sensible. (4.3%)
The CSA is you rightly supporting your child, if you child was living with you then they would almost certainly be costing you more than the CSA payments as the CSA woefully under calculates the cost of raising a child. (11.6%)

Child maintenance is not a "UK requirement" and the fact that you even thinking that you can evade supporting your child by leaving the country is wrong. Paying tax is not wrong, paying into a pension is not wrong, repaying a student loan that you chose to take out to increase your income is not wrong. 

This is an issue with your attitude rather than an issue with outgoings. 

I never asked for a morale lesson or perspective I'm sick of all that nonsense, I asked how do I reduce my 42% reduction on my salary. All these percent deductions don't account for each other. What's the point of I only keep 58% of my net.

In my opinion this is absolutely daylight robbery and the fact you're fine with that tells me you're well and truly gone into the system. Who on earth should be happy with a 42% value reduction?

If I move to Ireland for example, then surely CSA and student loans have no right or visual on my earnings?

lixhul

silvercar said:

Moving country won't make the student loan go away, it will be calculated based on the standard of living/ earning expectations of the country you will be living in. You can find the rates online.

In the UK, the rates for plan 2 is 9% of everything above £27,295 and for your post grad loan it is 6% of everything above £21,000. As your salary changes, so will the amount you payback - there is no flat rate as such.

Surely if I move they don't know I'm earning? I need a way to reduce this 42% overall take which is ridiculous.

If I moved to Ireland, or Canada for example which I am considering, then student loans and CSA are gone?

lixhul

swingaloo said:

You asked the same question  on here 12 months ago. But you also said then that you had £25.000 of debt so if that is still the same its probably costing you a fortune in payments for those. 

Yes I have those debts yet to pay 1p of it because this country is a soft touch.

But my question is there a country or way to reduce the amount of tax/requirements which sits at 40% net.

Many thanks 

Bobziz

lixhul said:

swingaloo said:

You asked the same question  on here 12 months ago. But you also said then that you had £25.000 of debt so if that is still the same its probably costing you a fortune in payments for those. 

Yes I have those debts yet to pay 1p of it because this country is a soft touch.

But my question is there a country or way to reduce the amount of tax/requirements which sits at 40% net.

Many thanks 

If you're not going to deal with the root cause of your problems which has nothing to do with money, then a temporary solution might be to find a better paid job. 

Dazed_and_C0nfused

lixhul said:

swingaloo said:

You asked the same question  on here 12 months ago. But you also said then that you had £25.000 of debt so if that is still the same its probably costing you a fortune in payments for those. 

Yes I have those debts yet to pay 1p of it because this country is a soft touch.

But my question is there a country or way to reduce the amount of tax/requirements which sits at 40% net.

Many thanks 

One very simple method would be to persuade your employer to start operating a salary sacrifice pension scheme.

Looking at your figures they are currently using the relief at source method, which means your £171.92 becomes £214.90 within your pension fund.

If they operated salary sacrifice you and sacrificed £171.92 of your earnings for employer pension contributions you would end up with only £171.92 in your pension, not £214.90, but you would avoid paying both tax and NI on the £171.92 you have sacrificed. 

It may also reduce student loan payments.  I cannot imagine would impact CSA payments as otherwise it would be too simple to abuse.

Having said that it is tinkering at the edges and I do tend to agree with the other posters who have replied.

What you are paying/having deducted is just part of life.  If you want more money getting a better paid job is the normal route.