Mentally Struggling with Tax and Student Loans

[Deleted User]

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 

Ireland certainly is not the answer - on that salary you would pay more in tax, PRSI, health costs etc.  Also, as a very close relative has experienced, the student loan is not ‘gone’. (Only a few thousand but they found her and she paid) 

silvercar

lixhul said:

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?

Some countries exchange financial information on residents, if you want to evade the eyes of the revenue then you need to find a country that doesn’t do this. Probably a lot further geographically/ politically/ financially than Ireland. The phrase ‘you can run but you can’t hide’ comes to mind. Also if you ever plan on returning, it’s all going to catch up with you plus potential penalties.

As for your situation, if your offspring was living with you, it would cost you money that you wouldn’t consider as a tax burden, it’s only because you are not playing happy families that you see this money as a tax, when it’s actually partly paying for your own child.

swingaloo

Your outgoings are the same as anyone else's who made the same choices.

You chose to go to university and study to earn a good income, presumably you understood how student loans work but still went.

You chose to have children who you now seem to resent having to pay for.

Neither of those choices or the results of making them should be a shock to an educated person so why rant about them now. Be grateful you earn a good income. 

But bragging about having £20.000 of debt and not yet paying 1p off it and trying to find a way to avoid supporting your children are not good choices.

sheramber

Perhaps you should read this link about waht happens about repay8ing your student loan when  you move abroad 

https://www.gov.uk/repaying-your-student-loan/how-you-repay

You took out loans, Why should you not repay them?