"Oh hello!" isn't that what you said at the "economic urinal" when you were taking a peek? Keep it coming Damien! You're videos are both entertaining and educational.
One of the worst things we decided as a nation was that to discuss wages is taboo, all it does is give those paying the wages the freedom to pay you as little as they can by dividing us further.
I tell my colleagues what percent rise I got and what appraisal overall score. I don't tell them my actual salary, I did that a couple of times some years ago when they asked and things went quite sour on both occasions since they were paid a lot less for a similar grade. Unfortunately instead of going to their boss and asking for what I was on they took it out on me which was daft as I had no say in what they were paid.
@@owensmith7530 : Your assumption is that, they would go to the boss to find out equal pay. But that is putting the company into disrepute as well, right ? Cos it should be their HR to check that they don't hire somebody that is not on equal pay. Yes, there could be a time lapse factor, but this is something that they have to do... or to change the job title and make them either do a little bit more, or a little bit less work. So that it is compliant as well. What many people doesn't seem to be able to do, is to judge the workload well.. imho...
@user-lp5wb2rb3v that's more than enough to be comfortable for almost everyone. Anyone who's thinks otherwise shows the privilege of ppl thinking they deserve to be earning more or spending more without bringing anything to society. And bad money management
but why is it so low? I would of thought to be in the top 10% you should have a salary after tax of £75 000 , to earn or be in a profession which pays £65k isn't that hard to achieve in 5 years IMO
The £50-60k child benefit limit was introduced in 2013, so we've had a decade of fiscal drag there. One parent earning over £50k means it needs to start being repaid. £50k in 2013 is around £66k today. So we've gone from this affecting the top 10% to a much larger segment of the population (which I would figure out if I had more time today!)
If ur earning above the 50k, put the extra into ur employer pension. That way u can still claim child benefit and u dont pay 40% on the earnings above 50k also 👍
And you also have to remember that, since these kind of thing comes into place.. then what some actual companies do, is to split the job into 2 instead. So everybody still gets less !!! Sometimes, it doesn't work out as you assume as well. Despite this video is nothing but an actual mere report... but companies, do things in their own way sometimes? And many owners often refuses to merge etc. Hence... this is why.. lots of people have literally given up. Cos what they now do, is to have parent company and subsidiaries instead. So they would ALWAYS actually closes a subsidiary to protect themselves long term too. As well as to actually go along with a defence mechanism of letting go of around 200 in order to save the entire company for another 10 years or something. It's just... literally really tough these days.. and the companies aren't listening. After the austerity period, so many individuals went to open companies, and they never merged themselves though. Management buyout was the norm in the previous financial depression... but the 2008 crash just didn't make people see... and now, it's gone. Cos nobody could see the wood for the trees any more. It's too complex ???
@@DAN-bc5ev It really does. I repay all of my child benefit every year as someone who earns more than £60K - it's called the high income child benefit charge. It always feels unfair because although I am a 40% rate payer, my wife earns little and pays no tax. A couple who both earned £49K a year would be able to keep all of their child benefit, whereas I have to repay it, despite their household income being much higher. We only keep receiving it in order for my wife to receive national insurance credits.
Wild to me how median earnings are so low considering every other car on the road seems to be a £50k+ car, even if it's financed you're looking at £600+ a month...
I wonder this. Time s are meant to be tough and then you see a median income like that. I work in the world of food supply and the continued astronomical growth of the likes of deliveroo and ubereats, which are the most expensive way to buy groceries is phenomenal. Hardly any 'bangers' on the roads these days. The standard first car now for someone who had just passed their test is a 3 year old one series, or 2 year old golf, if your family is poor😂.
I am surprised as well, u see people out an about having fun, having nice houses and cars and I do know that most of them earn a median income wage so makes me wonder wats their secret
I’ve thought this aswell. I suspect some of those people might have bought a used car (ie a 2 year old Landrover ect) which dramatically reduces the actual cost vs brand new, or they are spending everything they earn with little money at the end of the month.
This is a brilliant video! I love educating myself on finance but feel like a lot of what's online is the same thing said in a different way, your videos are amazing and a breath of fresh air. I learnt so much new information on this and never really considered the information about the tax brackets staying consistent for all these years. Thank you! I look forward to watching more
First video I've watched from this channel but ALOT of informed useful info was gained from just this one video, definitely worth my sub- hope you keep releasing content of this calibre.
For the longest time I have skipped through videos and become disengaged after a few minutes. I’ve been glued to this video and found it extremely insightful. Thanks for the upload.
I believe that the two most important things needed to earn money are the right information and, ironically, the money itself, because that's all it takes to make a good investment.
You're right, that's why I would like to give vital information here now. 6 months ago, I had the opportunity to be introduced to a financial expert called Mr. Larry Kent Burton, he specialises in investments and I was able to earn about $24,000 in profit
For sure he's gaining popularity every day, a man of his talent should be well recognised, not all random people can give accurate predictions on both the cryptocurrency and foreign exchange market
You're right my friend, he earns money on trading and investments without effort, I've been trading with him for 2 years now, sometimes we can have bad days but we're still benefitting at the end of the week, I'm happy to have met him
If you are a high earner dont fall into the trap of buying an expensive car, holidays, and house and then find inflationary increases in the cost of living makes you feel poor. Its not what you earn it is what you spend.
Fuck that, I work hard to bring home a decent income and I intend to spend it on whatever I choose to. As long as I’m spending less than I’m earning (which I am) then that works for me. I have a private pension which will pay out what I need it to come the day and an ISA, I don’t need or want to be any weather than that. Life is for living, not for counting your money. My mother does that and it’s turned her into a sad, lonely and bitter old woman which is not something anyone wants to see, meanwhile my younger brother died when he was 22 without realising any of the dreams or potential that he had. What can we learn?? Live the life you want to and don’t judge others for spending what they want to spend!!
This isn't a comment about the substance of the video Damien - I just wanted to say how much I enjoy your presentational style. Funny, engaging and informative. Bravo!
Another great video, thanks Damo. Can we just take a moment to appreciate the increase in production quality your videos. Wow, just wow! Amazing production, lighting and editing.. brilliant work that makes an even more interesting watch ❤
Since finding your channel I’ve set up a stocks and shares isa, begun regularly investing and significantly cut my monthly expenditure. Thank you for putting out the quality financial education I never got in school 👍🏼
@@DamienTalksMoney That is the plan mate, in my 30’s so I’m late to start but it’s better to be late than not do it at all. Between your channel and reading books (psychology of money, rich dad poor dad, millionaire next door, atomic habits) I’ve found it a lot easier to see things from a savvier perspective. A long comment but hopefully it helps someone out.
Would be good to hear your thoughts via a video on financial education to school kids Damo, i also got nothing in this respect and i honestly think its as important as any subject you need to know
An informative and well explained video! 40% on earnings over 50k frozen for 5 years is outrageous when inflation has been running double digits and shows little sign of returning to pre COVID levels. You are doing the UK electorate a service.
Like you said, Its best not to look at others but improve your own self worth. Thanks for the update Damo. keep up the good work on the videos and podcasts. Keep T on his toes :)
Great quality video Damo, loving the new studio and despite you already having such high quality videos, this one really stands out. I’m blown away by how you keep improving and improving. So chuffed for how far you have come and can’t wait to see just how far you go! Congratulations on being a trending video too! Epic that RUclips made a comment too. So proud of you!
NOTHER FISCAL drag is property prices and rent. Even 150k in London doesn't get you onto even vaguely nice house or area min for nice flat or basic house in London is 450k
The shocking thing about the tax as well is you could stomarch it, if we had world class services, investment in schools, etc. But everything is falling apart, where did this money go. We have the highest tax burden since WW2, yet we don't have a functioning NHS, we don't have hundreds of thousands of homes being built a year, hundreds of new schools etc. The money just seems to disappear, the debt since 2010 (so after the banks were bailed out) the national debt has gone up 1.5 trillion, even before covid it went up 1 trillion, where did it go. That is 22,000 pounds for everyone in the nation, I don't feel 22,000 better off I feel poorer than I did in 2010.
@Alex-cw3rz You need to understand things are very much like "Yes, Minister". The government overspends and underachieves chronically because it is inherent to any government. The fundamental reason why this is the case is because the government operates through theft, commonly called taxation. When you buy a product or service from a private business, you and that business must both voluntarily agree to the transaction. You both consent. If the business doesn't deliver, you can choose to not buy their stuff again. The government on the other hand does not work by these rules. They bang on your door and demand tribute on pain of some punishment. If the government repeatedly does a terrible job, gives your money to their friends, and so on, you can do nothing. You cannot withdraw funding from them, because they stole it from you!
Fiscal drag has been absolutely brutal for me, in a HCOL area and recently broke 50k just to see it decimated by a plan 2 student loan and 40% tax rate while costs are skyrocketing.
Tax is 20% plus 12% NI, then goes to 40% plus 2% NI. So the extra tax when you hit the higher rate bracket is only actually 10% the effect of which is quite modest. The next jump at £100k is 20% due to loss of personal allowance, that one is much more noticeable.
@@owensmith7530 It's the exponential increase on student loan for bonuses that you can't get a rebate on that effect my take-home the most. Out of a £2k bonus for example I'd see circa £700.
Underlines for me that if you're good at what you do, think about working for yourself. As your business grows you'll earn more than employees, and you can live where you like, so take advantage of regional and even international variations in cost of living. I've never heard of fiscal drag before but that makes absolute sense, another eye-opener, thank you Damo!
Self employment is definitely the way to go. I take home about four times as much as I did as a first level manager at various national and international companies,,,,,,, mowing lawns!😂
@@gregsmith7821 same, I started contracting in Tech and earn like 5x more than I did doing the same thing as regular employee. And that is not even manager level.
Speaking of stealth tax, it's also worth saying that the tax bands shown at 6:15 miss the clawback that happens on your taxable allowance after 100K. Basically, your initial tax free earnings are removed at a rate of 1 quid for ever 2 earned, so the effective tax band in this is pretty brutal, and much higher than the 40% shown. Outside of that, there is a lot of of data and I think it's important and useful to see how you're doing. The trick is to do so and use the outcome. So not feel bitter if you aren't doing great, or complacent or a dick if you are. There are reasons, and steps you can take, to incrementally improve your situation, and if you want to use the fact you're in the bottom quartile for motivation, it can be a great motivator. I am fortunate enough to be in the top 2% of earners, in London, though until recently I had no real assets and so I'm a long way from being wealthy, and that combination of appreciation and gratitude for my position, whilst still wanting to achieve more, keeps more focused.
Also above £100k you instantly lose all child benefits on top of the effective 62% tax you will be paying. I use AVC’s to redirect my income above £100k into my pension tax free to avoid losing these benefits and not pay 62% tax but receive tax free income into my pension instead. AVC’s are great.
The top 10% of workers in the UK (the £64K) take home - after tax, pension @5% and student loan payment plan 1 = £3413.02 a month.... that doesn't seem that much, if you have high expenses going out and living in London, such as rent, or mortgage, car loan, travelcard, council tax, gas & electric, water rate, food etc
What's interesting is that if you remove London, the rest of the UK is around 10% poorer than Mississippi, the poorest US state, measured via GDP per capita at PPP
@rollojarvis6567 £64K would be a London Salary for a senior manager. Outside London, you will be looking between £60 - £55k starting for a senior management position
Also depend on how long you have had your mortgage. I've had mine for 10 years and it was 1k per month - fast forward 10 years and 1k aint that bad. Its tough if your a new buyer in todays enviroment.
Fiscal drag doesn’t just affect people close to the next tax band… it affects everyone who is in any tax band (except those who stay within the tax free allowance). Fiscal drag effectively lowers the thresholds for anyone who pays tax each year, in real terms, because to inflation. If for example I’m on £40k and the 20p threshold is £10000 then 75% of my wage is taxable. If inflation is 25% (extreme example to make the maths easier) and I get a pay payrise to match inflation, but the £10000 threshold remains the same then im now on £50k but 80% of my income is now taxable. That’s assuming you even get a payrise to match inflation
I know not everyone is in a position to bump their pension contributions up significantly, but using salary sacrifice with a workplace pension is a great way of getting back down to the 20% tax band.
I was watching this wondering why I earn a lot more than the yearly average, yet my monthly wage is less than the average monthly wage; then I remembered that I make a large pension contribution through my workplace. Yes, I earn less than I could, but I know I'll reap the rewards in 20+ years time.
@@bluelit4830 There's never any guarantees in life, but the vast majority of us live to retirement age. Definitely live in the moment, but also keep one eye on the future 😊
you'd need to factor in pension differences as well in terms of 'total rewards' between public and private sector - a lot of public sector pension schemes are MUCH more generous than their private sector equivalents - which means 'total rewards' can be better even though public sector salaries have been held back...
Yes, unfortunate really as most of the public sector comprises incompetent lazy fux who wouldn't last a single day in the cut throat world if the private sector
Shakespeare is more important due to the character building nature of moral dilemmas , financial knowledge is simply vocational and much less significant.
Tax bands need to be revisited, because NHS pay awards this year pushed a lot of staff into the 40% pay band, meaning that the headline figures the government talked about were misleading.
i work for the civil service and earn well below the UK average of 30K. our government will do anything to keep wages low for the working class , tax tax tax
I used to work for the civil service when I first came to the UK. I was in scientific computing earning something like half what private sector would pay me but feeling like I was doing something meaningful. But life was becoming unaffordable year by year and I decided to prioritise financial security to relieve anxiety. Unfortunately, there is no one size fits all solution. My recommendation would be to go private if you can, the pressure on personal/household finances is insane right now and at that income level you’re not building generational wealth for your family’s future in an asset-based economy or any real pension savings. It sucks but it’s the sad reality. Even after going private in big tech on six figures I still can’t afford to get out of renting.
I had never considered fiscal drag prior to this year. with such high inflation, taxes have essentially gone up by a considerable amount. Thanks for teaching this stuff!
Fiscal drag does not only move you to higher tax bands but move you away from some benefits. For example you move from 50 to 60k and you need to return the whole children benefits. If you have two kids thats 1.8k....and the salary increase is in that case 6k. So the real increase is 4.2k. So, somehow the "tax" is 60% instead. And dont forget to do the tax return or you will face fines. Similar for other benefits like tax credits in lower salaries. Savings are also added to the salary bracket and the limits decrease. There is a lot linked to those and a few other limits which are frozen, and have been, for years. It is worth exposing all of those compared with inflation and salary increase since 2018.
so unsure on the benfit side, but if you went from say 50 to 55k then you`d be taxed on that 5k at the higher rate, however you could increase your pension input (by 5k a year for example) as this comes out of your gross pay, so the taxable pay actually decreases and you can end up in a similar place to being on 50k but it hasnt cost you money as you`ve just put it in your pension as opposed to paying tax on it and seeing it in your bank. if benefits are based on taxable pay rather than overall gross pay that could be an interesting option.
As a European with a median income, I always wonder: what do people that make more than I do, actualy do to earn that money. Even after 50 years, I couldn't figure it out. In most cases, they make money doing blablabla. Talking. (in contrast to engineers e.g.) They call this "services" and "sales" In other words: screwing your fellow citizens doing something you can't objectively put a price tag on. In my very liberal country, you don't get (children) benefits (accept kinderbijslag, which even the king gets) if you make 60k. They don't need it. (and they pay 49.5% taxes up to 70.000) I pay about 1.5% taxes over my savings. It would be more, if I had more than a few grant but I don't) We have income inequality too. But not a problem. It realy makes you wonder: is the UK a socialist or a liberal country. Or just fucked up.
This is very true. I’ve also had to pay income tax on my savings this year because you only get £500 tax free earnings on interest rather than the £1000 I had before.
It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.
Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401k it has yield nearly 1M after subsequent investments so far.
I've shuffled through a few experts in the past, but settled with LUCY ROSE CARTER. The strategy she use is recession-proof, more specifically profit-oriented , and most likely, you'd find her basic info on the net, she's a renowned advisor.
Making investments especially for a mast number of people involves a whole lot of risk and she recognises that and best believe this is the main reason for her long term success
I have turned over more than half MILLION working with LUCY ROSE CARTER on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.
If you are fortunate enough to find yourself creep into the higher rate band, if you can afford to you can make extra contributions into your workplace pension which should bring you under AND get tax relief, and keep child benefit (if applicable!)
This is exactly what smart high earners are doing. Excluding those who have the urge to constantly show off and spend thousands of pounds just to look rich.
You need to do this as Salary Sacrifice- as this is taken out pre-tax. Not all employers support this, which is a pain. If not the UK government tops up your pension contributions but only at basic rate, though i think you can claim for higher rate but its not automatically applied.
This is what I do, make big pension contributions, pay into the company share scheme which become tax free after 5 years etc… only thing is when it comes to drawing that massive pension pot (should you reach retirement age) the government will no doubt find a way of sticking their unwanted mitts into your pot! I can’t understand how they make so much money through taxes and the britains financial state is still a joke
You are watching a finance channel and likely have one eye on your finances as a result this puts you so far ahead of 90% of people who do not give their finances a second thought.
I started working in 2002, I hated fiscal drag and Gordon Brown as a result as I crept up towards 40% - not much has changed in the last 20 years, they all play the same game - the big difference has been that due to slight tweaks in my job description and other benefits I have slowly edged up further, I don't complain - the biggest yearly pay rise I have seen was 2.5% which was this year - I don't want, nor will I ask for more since I am grateful to be where I am for what I do and importantly making sure I don't splurge what I do get by putting more into my pension (not a deduction, but an investment in my future) and rest is what it is...
Recently learned what lifestyle inflation is and that I'd repeatedly done it as I was fortunate enough to progress up to higher rate earner. Only in the past couple of years have we deflated everything but our house, started living well within our means and really started to build a foundation for our financial future, I honestly have yourself snd other RUclipsrs to thank for the education and subsequent change of course. Lifestyle inflation is such an easy and common trap to slip into.
Thanks for interesting podcast. As reference, in Poland £30,257 puts you in the top 10% of national salaries, according to our latest report. Considering the differences in the cost of living, the situation in the UK doesn’t look very optimistic.
Youre right about fiscal drag, even though i'm making about 50% more than i did 5 years ago i don't feel any richer as i'm paying so much in tax now and cost of living has gone up so much.. that's really sad.
I'm in the same boat. 40% tax plus loss of child tax credits is absolutely brutal. Add the increased cost of living and having extra mouths to feed is it any wonder young people have stopped having kids. The current government and labour (who will be no different) are a parasite on society.
Not forgetting that any graduate will pay higher tax (incl student finance) than any older generation in each band, and usually higher proportionally than the band above
It's been a rough year with losses from failed banks and government, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong. What a terrible year it is…
A financial professional you work with could really prepare you for life. I'm glad I was able to get in touch with my coach Samuel Peter Descovich earlier this year because I was actively cashing out from my portfolio and finally earned over 370k just in the first quarter while everyone else was complaining about the downturn.Samuel Peter Descovich helped pay down our debt and save up for retirement.
Thank you so much for the advice. Your coach was simple to discover online. I did my research on him before I scheduled our phone call. he appears knowledgeable based on his online resume.
There are good days and bad days. It's a zero-sum game, but keep this advice in mind: spend wisely, invest wisely, and diversify your holdings so that when one performs poorly, the others do well. This can be accomplished by hiring a knowledgeable specialist like Samuel Peter Descovich whose platform provides a wide range of investment options. By doing so, you leave little room for regrets and may even gain more.
Failing to shift tax bands has been one of the darkest and underhanded moves against the working class by the toris. It’s going to be a tough winter for a lot of people.
There's also the difference between full-time and part-time workers, I'm not sure if you mentioned this. For full-time, the median is 33,280 but for part-time, it's only 11,856. But then if you restrict it to full-time workers aged 30 - 39, it goes up to 35,256. Interesting how grouping the data in different ways can give such different results. I'm on about the median for my age and hours, but then I get employer pension contributions as well so just looking at base pay is not the full story. (Well, they give 10% of my salary and call it "Pension Funding", but in reality you can use it however you want; odd system)
It is really interesting, isn't it? It really put into perspective what my income is in relation to other people within my age group and outside of my age group. I think I'm above the 75th percentile for my age range, which is quite encouraging. EDIT: fixed grammar
Top rate tax went from £150K+ to £125K+, this is why there was a massive jump in people in the tax bracket. Also earnings over 100K you loose your tax free allowance (for each £2 you earn over 100K you loose £1 from you tax free allowance, which basically puts you at ~62% tax rate.)
Even higher for those with student debt who pay 9% of earnings over a certain amount, which brings affective take home earnings to lower than 29%. Outrageous.
@@WhichDoctor1I hate this argument, but I’ll answer anyway. People who want to live a more than standard life want to earn more money, why discourage someone to earn more with a 70% tax? 100k doesn’t go far for a single income family living in London. Do you really believe a 71% tax rate is fair for a middle class earner?
As someone who lives in Leicester City, I feel compelled to comment. Leicester is within a 4 hour drive of 90% of the population. Leicester has direct transportation links to London, Nottingham, Derby, Coventry, and is only an hour's drive to Birmingham. Leicester has two universities, cheap office spaces and low wages. So it should be a hotbed for business, but it suffers from low government investment. If Leicestershire was funded the same way as Surry, it would be £104 million per year better of, or £350 million a year better off if it was funded like Camden. But it is predominately Labour supporting, has high immigration (with White Britains making up less than 50% of the population) and is mostly comprised of traditional small businesses. There is an opportunity for growth, but like when we ask the questions about why we don't have a UK Silicon Valley, we can't stuff everything in London and expect it to always perform.
I feel your pain, it was deemed ‘too expensive’ to spend 1 billion on expanding Manchester Piccadilly’s train capacity so currently only 1 train can come in and out at any time…. Increasing this would do no end of good for the city but the cost is too high. Meanwhile go to London Bridge station and marvel at the huge upgrade it has just had which is mostly cosmetic
Thanks for this. One thing that really bothered me during the 2019 election was a man complaining that Labour would tax him for earning £85,000 a year and weirdly thinking he wasn't even in the top half of earners, and the Labour candidate did not correct him to say £80,000+ is the top 5%, and if he is struggling imagine how difficult it is for the other 95% of the working population, let alone 50% earning less than £27,000, roughly a third of his own earnings.
BBC question time, I remember that one. It made waves at the time, and i think it still is a good example of how majorly important educating the general public on the country's economic context is. Videos like this one help.
If you are earning 85K and struggling it's because you are making horriffically bad financial choices, most likely buying a property that is vastly above your needs or a car that is a status symbol not a mode of transport. I'm one of those people earning below 27k and I don't struggle, sure I live in a 2 bedroom flat and don't for abraod 3 times a year on holiday, but I can afford to eat what I want, support a number of gaming hobbies and have a good 1 week holiday a year. What really hurts people is increases in energy and food costs. both of which is DIRECTLY caused by net zero. Ditch net zero and 99% of people will see a massive increase in quality of life.
I was remembering back to this while watching the video too, a lot of people don't understand how well off they are. It's generally more that people are living overly lavish lives far beyond their means, rather than they dont earn enough to get by...
Yep, that scene in question time frequently enters my mind whenever the topic of lifestyle inflation comes up. And I think the presenter Fiona did make a comment pointing out the wrong claim, although it was admittedly a bit muted. It mostly just emphasises the need for some form of real-time fact checker, even if solely used for just numbers/stats
Just stumbled across this Excellent video. The tax burden in the UK is shocking, and am putting then plans in place to bugger off to a fairer regime next year.
Rugby players don’t earn that much, most of the money is from sponsors. Also there are only 6000 registered footballers in the country, some premier league players are on very normal salaries. It’s the business owners who pocket cash deals you need to be worried about
The fiscal drag via the tax bands should be reviewed sooner rather than later. We are in tax year 2023/24 and those bands are currently fixed until 2027/28 - due for review in Apr 2028 (correct if I'm wrong). By then we are all in one hell of big hole!
I think the final point on cost of living needs to be made clearly. £27,000 a year in Leicester and you can probably rent your own place, save for a mortgage, have money for trips/meals out/car or whatever you like. The same in London would get you a house share with 6 other people, no savings and a constant need to budget for everything. Transport will be £1200 a year even if you only take public transport and your rent will be £800 to over £1000 a month for a house share. That's £13,000 to £14,000 of your £22,000 you take home (after tax) gone before you buy anything. So that's £800 a month for bills, phone, internet, food, clothing, kids, etc. all of which cost more in London. God forbid you need to buy something big. There are lots of rich people in London, but there are far far more in the bracket listed above.
But the tax system punishes people for working for and people for trying save money to support themselves--whether for specific goals or for future retirement! £50000 isn't a high salary to be putting people into the higher tax band? Once you're put in the higher tax band, everything else gets affected! It's unfair not because people who earn (slightly) more need to pay more tax! It's unfair because those who TRULY EARN MORE can hire a whole team of tax experts to help them be tax efficient (I'm not even talking about tax evasion!)
Absolutely. I'm Dutch. Even corected with inflation and exchange rate I make more than most of you do. And yes, the poorer blokes here do strugle. Because a lack of education. (or the abilty to get one) And yet, even after decades of liberal government there are very few of them. I'm starting to understand your income crisis. Income inequality should not be an economical issue. Lots of countries have that. (like the US and that country is doing just fine) But economies tend to run on median income workers. I don't know what you Brits did wrong, besides Brexit, but... Listen, personally I'd vote Libdem. If you belong to the 50% who fall below the median and strugle to live, vote labour.
There's also the small matter of losing your 12k tax free band once you go over 100k. If you happen to go into the 45% bracket due to bonus or commission, then incrementally you have to pay back tax on the 12k. If you get to 125k and you still have the 12k code, you owe HMRC almost 6k on top of the 45% you've already paid on that 25k.. Because 40 and then 45% ain't enough already baby, so pay 17k PAYE on 25k of earnings. Meanwhile, should you be earning more than that, you can invest some money with an accountant who can help you 'optimise' your income to reduce your tax bill. The whole system is skewed to keep the working class poor, and the middle class paying for everything. The top 1% meanwhile can just extract.
I work on the railway (not in a union and don’t strike) but the industry is just throwing money at us. Every few months I see some sort of bonus or increase in my pay packet due to the strikes. I’m already happy with my wage and conditions however, strikes are definitely contributing to the increase in the transport sector wage.
That was eye-opening. Thank you for the reminder to be thankful for what I have. As an American, I’ve been frustrated that I can’t quite make it into the top 20% here, but I would be in the top 10% in the UK. Things must be really tough over there for a lot of people.
America is a different world. You guys earn megabucks compared to us even if your costs are also higher. I would be making $130-150k a year in the US but I earn nothing close to that in the UK.
@@paulb3243depends. It’s cheap in cities more expensive in rural. As a whole, as a proportion of income, the US is cheaper than the UK on everything but health care. Cheaper housing, food, energy, lower inflation and taxes. People often see how expensive NYC or San Francisco is, but most people don’t live there
Well since there will be. GE before then it’s more than likely the Labour Party will decide if they stay frozen. It will be crazy to have the full state pension being above the personal tax allowance so expect something to change
@@simplydividendsTories and Labour literally are two sides of the same coin now. When labour does win the election I'll bet my mortgage any talk of pr soon disappears as well as both parties rely heavily on the us Vs them two party system
Live within your means. Put into a pension as early in life as possible and ensure your contributions increase as you earn more and likewise regularly save any surplus or overtime in investments ideally using ISA allocation, don't buy new cars, get onto the property ladder asap and you'll do alright.
What would be interesting would be some measure of income taking into account the cost of living. Because housing in London is so expensive, I would expect that it’s actually not the most prosperous place to live as a median earner.
I was paying £1,250 a month just on rent in London eleven years ago. Now it's just £400 for rent and council tax just outside Birmingham City Centre so I agree, whilst it seems they earn more they don't get to keep it to spend as they wish - I certainly didn't and there's no way I could save for anything, let alone property!
London is divided between those who own property and those who rent it. Specifically, those who are mortgage free or who bought before the early millennium and those who bought after. The income generated by a London property alone is sufficient to finance a lifestyle outside London. Someone entering the London workforce without any connection to the city, who aspired to more than survival accommodation would need to earn an executive salary well into six figures.
I have seen in the past comparison tables that show relative quality of life in different places across the U.K. based on a spending amount of 1k. So how far your money goes basically I will try to dig them out and make a video
another quality video Damien 👏🏽👏🏿👏🏼👏🏻👏🏾
Oh hello!
"Oh hello!" isn't that what you said at the "economic urinal" when you were taking a peek?
Keep it coming Damien! You're videos are both entertaining and educational.
Yoooo utube
Curious why the RUclips account is on a British salary video.
Making sure you didn’t mention anything about the CBDC system and the globalist agenda to control and enslave everyone. Probably..
One of the worst things we decided as a nation was that to discuss wages is taboo, all it does is give those paying the wages the freedom to pay you as little as they can by dividing us further.
I couldn’t agree more with this. Not discussing only benefits employers who can under pay
What about jealousy and envy ?
They tell us not to talk about religion and politics either!! 😂
I tell my colleagues what percent rise I got and what appraisal overall score. I don't tell them my actual salary, I did that a couple of times some years ago when they asked and things went quite sour on both occasions since they were paid a lot less for a similar grade. Unfortunately instead of going to their boss and asking for what I was on they took it out on me which was daft as I had no say in what they were paid.
@@owensmith7530 : Your assumption is that, they would go to the boss to find out equal pay. But that is putting the company into disrepute as well, right ? Cos it should be their HR to check that they don't hire somebody that is not on equal pay. Yes, there could be a time lapse factor, but this is something that they have to do... or to change the job title and make them either do a little bit more, or a little bit less work. So that it is compliant as well. What many people doesn't seem to be able to do, is to judge the workload well.. imho...
£181,248 puts you in the top 1% and £64,920 puts you in the top 10%, according to the above video
Thank you. He waffles 😮
65k after tax is £46k, lets remove 6k for travel, 10k for food and probably 20k for a mortgage.
Thats barely enough to be comfortable -_-
@user-lp5wb2rb3v that's more than enough to be comfortable for almost everyone. Anyone who's thinks otherwise shows the privilege of ppl thinking they deserve to be earning more or spending more without bringing anything to society. And bad money management
but why is it so low? I would of thought to be in the top 10% you should have a salary after tax of £75 000 , to earn or be in a profession which pays £65k isn't that hard to achieve in 5 years IMO
@@tomharrold4388 He may waffle but he gives good detail and shows facts rather than making it his opinion or appearing that way
The £50-60k child benefit limit was introduced in 2013, so we've had a decade of fiscal drag there. One parent earning over £50k means it needs to start being repaid. £50k in 2013 is around £66k today. So we've gone from this affecting the top 10% to a much larger segment of the population (which I would figure out if I had more time today!)
If ur earning above the 50k, put the extra into ur employer pension. That way u can still claim child benefit and u dont pay 40% on the earnings above 50k also 👍
It doesn't need to be repaid! Why are you telling lies?
@@DAN-bc5ev what am I lying about? www.gov.uk/child-benefit-tax-charge
And you also have to remember that, since these kind of thing comes into place.. then what some actual companies do, is to split the job into 2 instead. So everybody still gets less !!! Sometimes, it doesn't work out as you assume as well. Despite this video is nothing but an actual mere report... but companies, do things in their own way sometimes? And many owners often refuses to merge etc. Hence... this is why.. lots of people have literally given up. Cos what they now do, is to have parent company and subsidiaries instead. So they would ALWAYS actually closes a subsidiary to protect themselves long term too. As well as to actually go along with a defence mechanism of letting go of around 200 in order to save the entire company for another 10 years or something. It's just... literally really tough these days.. and the companies aren't listening. After the austerity period, so many individuals went to open companies, and they never merged themselves though. Management buyout was the norm in the previous financial depression... but the 2008 crash just didn't make people see... and now, it's gone. Cos nobody could see the wood for the trees any more. It's too complex ???
@@DAN-bc5ev It really does. I repay all of my child benefit every year as someone who earns more than £60K - it's called the high income child benefit charge. It always feels unfair because although I am a 40% rate payer, my wife earns little and pays no tax. A couple who both earned £49K a year would be able to keep all of their child benefit, whereas I have to repay it, despite their household income being much higher. We only keep receiving it in order for my wife to receive national insurance credits.
Wild to me how median earnings are so low considering every other car on the road seems to be a £50k+ car, even if it's financed you're looking at £600+ a month...
I wonder this. Time s are meant to be tough and then you see a median income like that. I work in the world of food supply and the continued astronomical growth of the likes of deliveroo and ubereats, which are the most expensive way to buy groceries is phenomenal. Hardly any 'bangers' on the roads these days. The standard first car now for someone who had just passed their test is a 3 year old one series, or 2 year old golf, if your family is poor😂.
I am surprised as well, u see people out an about having fun, having nice houses and cars and I do know that most of them earn a median income wage so makes me wonder wats their secret
My first car was a clapped out 02 plate 1L suzuki swift, and my insurance was 6x the cost of the car. lmao
Credit card debt and living paycheck to paycheck
I’ve thought this aswell. I suspect some of those people might have bought a used car (ie a 2 year old Landrover ect) which dramatically reduces the actual cost vs brand new, or they are spending everything they earn with little money at the end of the month.
This is great information. Love how you encouraged people to think about sectors and industries they work in.
This is a brilliant video! I love educating myself on finance but feel like a lot of what's online is the same thing said in a different way, your videos are amazing and a breath of fresh air. I learnt so much new information on this and never really considered the information about the tax brackets staying consistent for all these years. Thank you! I look forward to watching more
Thank you for leaving this comment
First video I've watched from this channel but ALOT of informed useful info was gained from just this one video, definitely worth my sub- hope you keep releasing content of this calibre.
For the longest time I have skipped through videos and become disengaged after a few minutes. I’ve been glued to this video and found it extremely insightful. Thanks for the upload.
Great to hear!
“Taking a peak at the economic urinal” is a fantastic metaphor 😂😂
This was a fantastic video.
The way you exposed and explained that data couldn't have been clearer!
Well done 👏🏻
Thank you!
@@DamienTalksMoney It's two hours I have been watching all your videos now! You are REALLY good! 🙂
I believe that the two most important things needed to earn money are the right information and, ironically, the money itself, because that's all it takes to make a good investment.
You're right, that's why I would like to give vital information here now. 6 months ago, I had the opportunity to be introduced to a financial expert called Mr. Larry Kent Burton, he specialises in investments and I was able to earn about $24,000 in profit
My friend, I think your life was changed for good just because you were lucky enough to have this information, am I right?
You're right my friend, all it takes to earn money is information and the money itself, my investments with Mr. Larry Kent Burton proved it to me
For sure he's gaining popularity every day, a man of his talent should be well recognised, not all random people can give accurate predictions on both the cryptocurrency and foreign exchange market
You're right my friend, he earns money on trading and investments without effort, I've been trading with him for 2 years now, sometimes we can have bad days but we're still benefitting at the end of the week, I'm happy to have met him
Love this. I live in Leicestershire and work in London - hybrid! push for more.. most companies want SMEs and you have the power to negotiate!
If you are a high earner dont fall into the trap of buying an expensive car, holidays, and house and then find inflationary increases in the cost of living makes you feel poor. Its not what you earn it is what you spend.
Doesn't matter how you spend in the long run if they keep printing more FIAT at the first sign of any trouble, devaluing currency in the process.
You should enjoy the here and now too though, there's no guarantee of the future. Balance.
So we should just rent, or live in a home and not improve it? Just work and don't holiday abroad?
What kind of life has no aspirations?
Well said mate
Fuck that, I work hard to bring home a decent income and I intend to spend it on whatever I choose to. As long as I’m spending less than I’m earning (which I am) then that works for me. I have a private pension which will pay out what I need it to come the day and an ISA, I don’t need or want to be any weather than that. Life is for living, not for counting your money. My mother does that and it’s turned her into a sad, lonely and bitter old woman which is not something anyone wants to see, meanwhile my younger brother died when he was 22 without realising any of the dreams or potential that he had. What can we learn?? Live the life you want to and don’t judge others for spending what they want to spend!!
The fiscal drag is horrific. Thank you for making more people aware of this, Damien. Great video as always 😊
Gordon Brown started doing this, as a way to avoid putting up income tax. And now the Tories carry it on.
This video is incredible and I cannot praise Damien highly enough for putting it together
This isn't a comment about the substance of the video Damien - I just wanted to say how much I enjoy your presentational style. Funny, engaging and informative. Bravo!
Lovely comment thank you so much
I commented too early, the ending was even better, superb. Well done again
Another great video, thanks Damo. Can we just take a moment to appreciate the increase in production quality your videos. Wow, just wow! Amazing production, lighting and editing.. brilliant work that makes an even more interesting watch ❤
Thank you!
I learnt something new from this video. I've never considered fiscal drag before. Great video!
Since finding your channel I’ve set up a stocks and shares isa, begun regularly investing and significantly cut my monthly expenditure. Thank you for putting out the quality financial education I never got in school 👍🏼
This is music to my ears thank you so much and well done for getting started! Stay consistent it will change your life.
@@DamienTalksMoney That is the plan mate, in my 30’s so I’m late to start but it’s better to be late than not do it at all. Between your channel and reading books (psychology of money, rich dad poor dad, millionaire next door, atomic habits) I’ve found it a lot easier to see things from a savvier perspective. A long comment but hopefully it helps someone out.
Would be good to hear your thoughts via a video on financial education to school kids Damo, i also got nothing in this respect and i honestly think its as important as any subject you need to know
An informative and well explained video! 40% on earnings over 50k frozen for 5 years is outrageous when inflation has been running double digits and shows little sign of returning to pre COVID levels. You are doing the UK electorate a service.
Like you said, Its best not to look at others but improve your own self worth. Thanks for the update Damo. keep up the good work on the videos and podcasts. Keep T on his toes :)
T keeps me on mine! I was with him this weekend in London.. I need a holiday now
@@DamienTalksMoney hahaha, Don't we all
Great quality video Damo, loving the new studio and despite you already having such high quality videos, this one really stands out. I’m blown away by how you keep improving and improving. So chuffed for how far you have come and can’t wait to see just how far you go! Congratulations on being a trending video too! Epic that RUclips made a comment too. So proud of you!
NOTHER FISCAL drag is property prices and rent. Even 150k in London doesn't get you onto even vaguely nice house or area min for nice flat or basic house in London is 450k
The shocking thing about the tax as well is you could stomarch it, if we had world class services, investment in schools, etc. But everything is falling apart, where did this money go. We have the highest tax burden since WW2, yet we don't have a functioning NHS, we don't have hundreds of thousands of homes being built a year, hundreds of new schools etc. The money just seems to disappear, the debt since 2010 (so after the banks were bailed out) the national debt has gone up 1.5 trillion, even before covid it went up 1 trillion, where did it go. That is 22,000 pounds for everyone in the nation, I don't feel 22,000 better off I feel poorer than I did in 2010.
You’re absolutely spot on, there’s nothing to show for it!
@Alex-cw3rz You need to understand things are very much like "Yes, Minister". The government overspends and underachieves chronically because it is inherent to any government.
The fundamental reason why this is the case is because the government operates through theft, commonly called taxation.
When you buy a product or service from a private business, you and that business must both voluntarily agree to the transaction. You both consent. If the business doesn't deliver, you can choose to not buy their stuff again.
The government on the other hand does not work by these rules. They bang on your door and demand tribute on pain of some punishment. If the government repeatedly does a terrible job, gives your money to their friends, and so on, you can do nothing. You cannot withdraw funding from them, because they stole it from you!
Goes to government consultants and management agencies and Tory mates contracts
I'm stunned you have not got more subs, thank you for all your information 🙂
Fiscal drag has been absolutely brutal for me, in a HCOL area and recently broke 50k just to see it decimated by a plan 2 student loan and 40% tax rate while costs are skyrocketing.
Tax is 20% plus 12% NI, then goes to 40% plus 2% NI. So the extra tax when you hit the higher rate bracket is only actually 10% the effect of which is quite modest. The next jump at £100k is 20% due to loss of personal allowance, that one is much more noticeable.
@@owensmith7530 It's the exponential increase on student loan for bonuses that you can't get a rebate on that effect my take-home the most.
Out of a £2k bonus for example I'd see circa £700.
Great video. Well explained and easy to understand. Thanks!
Thank you!
Underlines for me that if you're good at what you do, think about working for yourself. As your business grows you'll earn more than employees, and you can live where you like, so take advantage of regional and even international variations in cost of living.
I've never heard of fiscal drag before but that makes absolute sense, another eye-opener, thank you Damo!
Self employment is definitely the way to go. I take home about four times as much as I did as a first level manager at various national and international companies,,,,,,, mowing lawns!😂
@@gregsmith7821 same, I started contracting in Tech and earn like 5x more than I did doing the same thing as regular employee. And that is not even manager level.
Wow what a great video on wages…the first person I’ve heard talk about fiscal drag
Speaking of stealth tax, it's also worth saying that the tax bands shown at 6:15 miss the clawback that happens on your taxable allowance after 100K. Basically, your initial tax free earnings are removed at a rate of 1 quid for ever 2 earned, so the effective tax band in this is pretty brutal, and much higher than the 40% shown.
Outside of that, there is a lot of of data and I think it's important and useful to see how you're doing. The trick is to do so and use the outcome. So not feel bitter if you aren't doing great, or complacent or a dick if you are. There are reasons, and steps you can take, to incrementally improve your situation, and if you want to use the fact you're in the bottom quartile for motivation, it can be a great motivator.
I am fortunate enough to be in the top 2% of earners, in London, though until recently I had no real assets and so I'm a long way from being wealthy, and that combination of appreciation and gratitude for my position, whilst still wanting to achieve more, keeps more focused.
It's high, but I wouldn't call it brutal since it only happens after 100k.
100k a year isn't that much, not when you look at what houses in London cost.
Also above £100k you instantly lose all child benefits on top of the effective 62% tax you will be paying. I use AVC’s to redirect my income above £100k into my pension tax free to avoid losing these benefits and not pay 62% tax but receive tax free income into my pension instead. AVC’s are great.
@@MrEdrftgyuji 100k is a lot considering 85% of the UK is outside London.
@@FriendlyFreeSounds You would still struggle to buy an average £300k home on £100k a year (or £60k after taxes).
Awesome overview of the research. Thanks.
The top 10% of workers in the UK (the £64K) take home - after tax, pension @5% and student loan payment plan 1 = £3413.02 a month.... that doesn't seem that much, if you have high expenses going out and living in London, such as rent, or mortgage, car loan, travelcard, council tax, gas & electric, water rate, food etc
Basically where I’m at
What's interesting is that if you remove London, the rest of the UK is around 10% poorer than Mississippi, the poorest US state, measured via GDP per capita at PPP
@rollojarvis6567 £64K would be a London Salary for a senior manager. Outside London, you will be looking between £60 - £55k starting for a senior management position
Also depend on how long you have had your mortgage. I've had mine for 10 years and it was 1k per month - fast forward 10 years and 1k aint that bad. Its tough if your a new buyer in todays enviroment.
@froomer17 £1k a month really good, when do you have to remortgage?
Smart bloke. Brill analysis....well done
The quality is just getting better and better.
Fiscal drag doesn’t just affect people close to the next tax band… it affects everyone who is in any tax band (except those who stay within the tax free allowance). Fiscal drag effectively lowers the thresholds for anyone who pays tax each year, in real terms, because to inflation.
If for example I’m on £40k and the 20p threshold is £10000 then 75% of my wage is taxable. If inflation is 25% (extreme example to make the maths easier) and I get a pay payrise to match inflation, but the £10000 threshold remains the same then im now on £50k but 80% of my income is now taxable. That’s assuming you even get a payrise to match inflation
setup is looking clean! well done. excellent stuff. lets see a ramin combo again soon!
Another interesting and informative video, Damien, many thanks.
My pleasure! Glad you thought it was usefull
Loving the analysis!
I know not everyone is in a position to bump their pension contributions up significantly, but using salary sacrifice with a workplace pension is a great way of getting back down to the 20% tax band.
I was watching this wondering why I earn a lot more than the yearly average, yet my monthly wage is less than the average monthly wage; then I remembered that I make a large pension contribution through my workplace. Yes, I earn less than I could, but I know I'll reap the rewards in 20+ years time.
Assuming you’ll love that long.
@@bluelit4830 There's never any guarantees in life, but the vast majority of us live to retirement age. Definitely live in the moment, but also keep one eye on the future 😊
@@bluelit4830 No point planning for not living that long
@@bluelit4830 "When you assume, you make an ass out of u and me.”
Great content Damian 👍🏼
Thank you!
Would love to see an analysis of the differences between private and public sector.
you'd need to factor in pension differences as well in terms of 'total rewards' between public and private sector - a lot of public sector pension schemes are MUCH more generous than their private sector equivalents - which means 'total rewards' can be better even though public sector salaries have been held back...
Yes, unfortunate really as most of the public sector comprises incompetent lazy fux who wouldn't last a single day in the cut throat world if the private sector
well put together and very poignant. well done. I have subbed
The intro to this video is pure poetry in motion 😂 kudos Damien
Thank you Richard
Another great video Damo. Great to see the video on the explore page trending as a top video! Well done mate!
Madness that! Haha never expected that from a U.K. finance channel
@@DamienTalksMoney well deserved! Great that more people can get to see your hard work! Carrying the flag, woop 🙌
Criminal that this kind of information isn’t pushed in compulsory education. Imagine thinking Drama is more important than financial awareness!
Yeah but if they teach this it will just cause government to find another mechanism that we don't all know about
Shakespeare is more important due to the character building nature of moral dilemmas , financial knowledge is simply vocational and much less significant.
Very good video Damien, Thank you.
Thank you really appreciate you taking the time to watch and comment.
Tax bands need to be revisited, because NHS pay awards this year pushed a lot of staff into the 40% pay band, meaning that the headline figures the government talked about were misleading.
i work for the civil service and earn well below the UK average of 30K. our government will do anything to keep wages low for the working class , tax tax tax
I used to work for the civil service when I first came to the UK. I was in scientific computing earning something like half what private sector would pay me but feeling like I was doing something meaningful. But life was becoming unaffordable year by year and I decided to prioritise financial security to relieve anxiety.
Unfortunately, there is no one size fits all solution. My recommendation would be to go private if you can, the pressure on personal/household finances is insane right now and at that income level you’re not building generational wealth for your family’s future in an asset-based economy or any real pension savings. It sucks but it’s the sad reality.
Even after going private in big tech on six figures I still can’t afford to get out of renting.
I had never considered fiscal drag prior to this year. with such high inflation, taxes have essentially gone up by a considerable amount. Thanks for teaching this stuff!
Fiscal drag does not only move you to higher tax bands but move you away from some benefits. For example you move from 50 to 60k and you need to return the whole children benefits. If you have two kids thats 1.8k....and the salary increase is in that case 6k. So the real increase is 4.2k. So, somehow the "tax" is 60% instead. And dont forget to do the tax return or you will face fines. Similar for other benefits like tax credits in lower salaries. Savings are also added to the salary bracket and the limits decrease. There is a lot linked to those and a few other limits which are frozen, and have been, for years. It is worth exposing all of those compared with inflation and salary increase since 2018.
so unsure on the benfit side, but if you went from say 50 to 55k then you`d be taxed on that 5k at the higher rate, however you could increase your pension input (by 5k a year for example) as this comes out of your gross pay, so the taxable pay actually decreases and you can end up in a similar place to being on 50k but it hasnt cost you money as you`ve just put it in your pension as opposed to paying tax on it and seeing it in your bank. if benefits are based on taxable pay rather than overall gross pay that could be an interesting option.
@@BBThemesI was just going to suggest the better course would have been a 5k or whatever suits salary sacrifice into a sipp to reduce taxable pay
As a European with a median income, I always wonder: what do people that make more than I do, actualy do to earn that money. Even after 50 years, I couldn't figure it out. In most cases, they make money doing blablabla. Talking. (in contrast to engineers e.g.) They call this "services" and "sales" In other words: screwing your fellow citizens doing something you can't objectively put a price tag on.
In my very liberal country, you don't get (children) benefits (accept kinderbijslag, which even the king gets) if you make 60k. They don't need it. (and they pay 49.5% taxes up to 70.000) I pay about 1.5% taxes over my savings. It would be more, if I had more than a few grant but I don't)
We have income inequality too. But not a problem. It realy makes you wonder: is the UK a socialist or a liberal country. Or just fucked up.
This is very true.
I’ve also had to pay income tax on my savings this year because you only get £500 tax free earnings on interest rather than the £1000 I had before.
Your content is so bloody engaging.
What a legend! Love this comment thank you
It is always good to have a financial plan. I work with a professional planner and fixed-income strategist in NY. The fixed income portion of your portfolio won't simply serve as a buffer to the volatility of the equity portion of your portfolio, but will provide legitimate income.
Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advisors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401k it has yield nearly 1M after subsequent investments so far.
I've shuffled through a few experts in the past, but settled with LUCY ROSE CARTER. The strategy she use is recession-proof, more specifically profit-oriented , and most likely, you'd find her basic info on the net, she's a renowned advisor.
Making investments especially for a mast number of people involves a whole lot of risk and she recognises that and best believe this is the main reason for her long term success
I have turned over more than half MILLION working with LUCY ROSE CARTER on a wide array of options and finally sticking to a few that have been favorable in the past 2 years.
How can I join in? I will be happy growing my money while giving a few of it away to charity, giving back is as good as receiving.
If you are fortunate enough to find yourself creep into the higher rate band, if you can afford to you can make extra contributions into your workplace pension which should bring you under AND get tax relief, and keep child benefit (if applicable!)
This is exactly what smart high earners are doing. Excluding those who have the urge to constantly show off and spend thousands of pounds just to look rich.
Dont forget cycle to work schemes, electric cars schemes or anything else that is deducted pre-tax that your company may offer.
Absolutely correct.
You need to do this as Salary Sacrifice- as this is taken out pre-tax. Not all employers support this, which is a pain. If not the UK government tops up your pension contributions but only at basic rate, though i think you can claim for higher rate but its not automatically applied.
This is what I do, make big pension contributions, pay into the company share scheme which become tax free after 5 years etc… only thing is when it comes to drawing that massive pension pot (should you reach retirement age) the government will no doubt find a way of sticking their unwanted mitts into your pot! I can’t understand how they make so much money through taxes and the britains financial state is still a joke
Keep up the good work Damian
Perfect Sunday morning viewing! Now I need to work Sundays! Coz I'm poor!
You are watching a finance channel and likely have one eye on your finances as a result this puts you so far ahead of 90% of people who do not give their finances a second thought.
I then watched 'Richer than you think you are' and I wasn't! Time for a third job!
This channel is seriously underestimated. Here before 1M subs!
Thank you! Glad you enjoy the channel.
I started working in 2002, I hated fiscal drag and Gordon Brown as a result as I crept up towards 40% - not much has changed in the last 20 years, they all play the same game - the big difference has been that due to slight tweaks in my job description and other benefits I have slowly edged up further, I don't complain - the biggest yearly pay rise I have seen was 2.5% which was this year - I don't want, nor will I ask for more since I am grateful to be where I am for what I do and importantly making sure I don't splurge what I do get by putting more into my pension (not a deduction, but an investment in my future) and rest is what it is...
Amazing video. Very engaging and entertaining 😂😂
Recently learned what lifestyle inflation is and that I'd repeatedly done it as I was fortunate enough to progress up to higher rate earner. Only in the past couple of years have we deflated everything but our house, started living well within our means and really started to build a foundation for our financial future, I honestly have yourself snd other RUclipsrs to thank for the education and subsequent change of course. Lifestyle inflation is such an easy and common trap to slip into.
Thanks for interesting podcast. As reference, in Poland £30,257 puts you in the top 10% of national salaries, according to our latest report. Considering the differences in the cost of living, the situation in the UK doesn’t look very optimistic.
some of us make £1700 a month paying £1000 rent. London is not for the working class
Congrats. You're number 16 on trending videos in the U.K.. That's gotta feel good!
Youre right about fiscal drag, even though i'm making about 50% more than i did 5 years ago i don't feel any richer as i'm paying so much in tax now and cost of living has gone up so much.. that's really sad.
50% waw
I'm in the same boat. 40% tax plus loss of child tax credits is absolutely brutal. Add the increased cost of living and having extra mouths to feed is it any wonder young people have stopped having kids. The current government and labour (who will be no different) are a parasite on society.
The economic urinal might be my favourite analogy I've ever heard 😂
Pretty accurate description of the U.K. at the min also 🤣
Good to see you’ve recovered & doing well Damien
Not forgetting that any graduate will pay higher tax (incl student finance) than any older generation in each band, and usually higher proportionally than the band above
Yep, any pay rise I get, 15% goes on student loans, 40% goes on tax, 2% goes on NI, 6% goes to my pension. Not much left after that!
I’ve never seen any of your videos before. V impressive. Well done. I’m subscribing
It's been a rough year with losses from failed banks and government, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong.
What a terrible year it is…
A financial professional you work with could really prepare you for life. I'm glad I was able to get in touch with my coach Samuel Peter Descovich earlier this year because I was actively cashing out from my portfolio and finally earned over 370k just in the first quarter while everyone else was complaining about the downturn.Samuel Peter Descovich helped pay down our debt and save up for retirement.
Thank you so much for the advice. Your coach was simple to discover online. I did my research on him before I scheduled our phone call. he appears knowledgeable based on his online resume.
I found his extraordinary resume when I searched for his name on Google. I count it a gift that I went over this remark
There are good days and bad days. It's a zero-sum game, but keep this advice in mind: spend wisely, invest wisely, and diversify your holdings so that when one performs poorly, the others do well.
This can be accomplished by hiring a knowledgeable specialist like Samuel Peter Descovich whose platform provides a wide range of investment options. By doing so, you leave little room for regrets and may even gain more.
-I just looked up his name on Google and saw his impressive resume. I consider myself lucky to have found this comment area..
First video of you’re I’ve ever watched, very impressed,you’ve got a new sub
Failing to shift tax bands has been one of the darkest and underhanded moves against the working class by the toris. It’s going to be a tough winter for a lot of people.
You are spot on Stan
Hi Damien your channel just came up on my feed,the algorithm must be working you’ve got a new subscriber 👍
Instruction was 🔥🔥🔥
There's also the difference between full-time and part-time workers, I'm not sure if you mentioned this. For full-time, the median is 33,280 but for part-time, it's only 11,856. But then if you restrict it to full-time workers aged 30 - 39, it goes up to 35,256. Interesting how grouping the data in different ways can give such different results.
I'm on about the median for my age and hours, but then I get employer pension contributions as well so just looking at base pay is not the full story. (Well, they give 10% of my salary and call it "Pension Funding", but in reality you can use it however you want; odd system)
It is really interesting, isn't it? It really put into perspective what my income is in relation to other people within my age group and outside of my age group. I think I'm above the 75th percentile for my age range, which is quite encouraging.
EDIT: fixed grammar
it's cheaper to live in americas
Brilliant video, well explained.
A lot of people earning £12575 or less are “directors” who take a non taxed wage and then take dividends on the rest which isn’t taxed at PAYE rates
Still taxed at the equivalent, dividend tax rates plus corporation tax is the same as income tax.
Thanks for the breakdown into usable chunks :)
Top rate tax went from £150K+ to £125K+, this is why there was a massive jump in people in the tax bracket. Also earnings over 100K you loose your tax free allowance (for each £2 you earn over 100K you loose £1 from you tax free allowance, which basically puts you at ~62% tax rate.)
Even higher for those with student debt who pay 9% of earnings over a certain amount, which brings affective take home earnings to lower than 29%. Outrageous.
@@jackatkins749student debt is a separate topic, that's a debt taken on by choice, not a tax
@@Jay-xr3sb Not really a choice when the majority of top earning careers require a degree.
when you're earning over 100k a year, how much more money do you actually need?
@@WhichDoctor1I hate this argument, but I’ll answer anyway. People who want to live a more than standard life want to earn more money, why discourage someone to earn more with a 70% tax? 100k doesn’t go far for a single income family living in London.
Do you really believe a 71% tax rate is fair for a middle class earner?
FinTech here and I can attest that dem Finance boys throw money around like confetti.
As someone who lives in Leicester City, I feel compelled to comment.
Leicester is within a 4 hour drive of 90% of the population. Leicester has direct transportation links to London, Nottingham, Derby, Coventry, and is only an hour's drive to Birmingham. Leicester has two universities, cheap office spaces and low wages.
So it should be a hotbed for business, but it suffers from low government investment. If Leicestershire was funded the same way as Surry, it would be £104 million per year better of, or £350 million a year better off if it was funded like Camden. But it is predominately Labour supporting, has high immigration (with White Britains making up less than 50% of the population) and is mostly comprised of traditional small businesses. There is an opportunity for growth, but like when we ask the questions about why we don't have a UK Silicon Valley, we can't stuff everything in London and expect it to always perform.
I feel your pain, it was deemed ‘too expensive’ to spend 1 billion on expanding Manchester Piccadilly’s train capacity so currently only 1 train can come in and out at any time…. Increasing this would do no end of good for the city but the cost is too high. Meanwhile go to London Bridge station and marvel at the huge upgrade it has just had which is mostly cosmetic
I love your content man! Serious value with that bit of humour thrown in too! Looking well also!
You didn't show the threshold for loss of personal allowance at £100,000 has also been frozen, and that is also part of fiscal drag.
A deliberate mistake? Tax bands are already progressive, bar the effective 60% tax and 100 to 125k, didn't suit his arguement
Good video very well broken down
Glad you liked it!
Thanks for this. One thing that really bothered me during the 2019 election was a man complaining that Labour would tax him for earning £85,000 a year and weirdly thinking he wasn't even in the top half of earners, and the Labour candidate did not correct him to say £80,000+ is the top 5%, and if he is struggling imagine how difficult it is for the other 95% of the working population, let alone 50% earning less than £27,000, roughly a third of his own earnings.
BBC question time, I remember that one. It made waves at the time, and i think it still is a good example of how majorly important educating the general public on the country's economic context is.
Videos like this one help.
If you are earning 85K and struggling it's because you are making horriffically bad financial choices, most likely buying a property that is vastly above your needs or a car that is a status symbol not a mode of transport.
I'm one of those people earning below 27k and I don't struggle, sure I live in a 2 bedroom flat and don't for abraod 3 times a year on holiday, but I can afford to eat what I want, support a number of gaming hobbies and have a good 1 week holiday a year.
What really hurts people is increases in energy and food costs. both of which is DIRECTLY caused by net zero. Ditch net zero and 99% of people will see a massive increase in quality of life.
I was remembering back to this while watching the video too, a lot of people don't understand how well off they are. It's generally more that people are living overly lavish lives far beyond their means, rather than they dont earn enough to get by...
Yep, that scene in question time frequently enters my mind whenever the topic of lifestyle inflation comes up. And I think the presenter Fiona did make a comment pointing out the wrong claim, although it was admittedly a bit muted.
It mostly just emphasises the need for some form of real-time fact checker, even if solely used for just numbers/stats
It's because loads of people are living in cloud cuckoo land. When you work in London you think everyone must earn at least £70k, even waiters.
Just stumbled across this Excellent video. The tax burden in the UK is shocking, and am putting then plans in place to bugger off to a fairer regime next year.
I'd love to see the figures minus professional footballers, rugby players and investment banker salaries.
That's why he focuses the video on the median and not the average. It gives a more precise value on what the nominal income is.
@jimbojimbo6873 fair enough
@@devonbrazier4855 should mention the mode, median and mean average. I’m more interested in the mode and mean.
Rugby players don’t earn that much, most of the money is from sponsors. Also there are only 6000 registered footballers in the country, some premier league players are on very normal salaries. It’s the business owners who pocket cash deals you need to be worried about
what kind of jobs are in the uk?
thanks man, so informative!!!
The fiscal drag via the tax bands should be reviewed sooner rather than later. We are in tax year 2023/24 and those bands are currently fixed until 2027/28 - due for review in Apr 2028 (correct if I'm wrong). By then we are all in one hell of big hole!
Yep! I suspect it will be reviewed. Maybe some promises near election time..
@@DamienTalksMoneyif the Tories don't raise the tax band they will be lucky to return a single mp in the next election.
I think the final point on cost of living needs to be made clearly. £27,000 a year in Leicester and you can probably rent your own place, save for a mortgage, have money for trips/meals out/car or whatever you like.
The same in London would get you a house share with 6 other people, no savings and a constant need to budget for everything. Transport will be £1200 a year even if you only take public transport and your rent will be £800 to over £1000 a month for a house share. That's £13,000 to £14,000 of your £22,000 you take home (after tax) gone before you buy anything. So that's £800 a month for bills, phone, internet, food, clothing, kids, etc. all of which cost more in London. God forbid you need to buy something big.
There are lots of rich people in London, but there are far far more in the bracket listed above.
Just to clarify all figures are before tax.
But the tax system punishes people for working for and people for trying save money to support themselves--whether for specific goals or for future retirement! £50000 isn't a high salary to be putting people into the higher tax band? Once you're put in the higher tax band, everything else gets affected! It's unfair not because people who earn (slightly) more need to pay more tax! It's unfair because those who TRULY EARN MORE can hire a whole team of tax experts to help them be tax efficient (I'm not even talking about tax evasion!)
You're shocked that 50% of people fall below the median?
That's how medians work!
Absolutely. I'm Dutch. Even corected with inflation and exchange rate I make more than most of you do. And yes, the poorer blokes here do strugle. Because a lack of education. (or the abilty to get one) And yet, even after decades of liberal government there are very few of them. I'm starting to understand your income crisis. Income inequality should not be an economical issue. Lots of countries have that. (like the US and that country is doing just fine) But economies tend to run on median income workers. I don't know what you Brits did wrong, besides Brexit, but...
Listen, personally I'd vote Libdem. If you belong to the 50% who fall below the median and strugle to live, vote labour.
This is all relative though, I'm sure it costs alot less to live in Leciester than it does Wandsworth???
There's also the small matter of losing your 12k tax free band once you go over 100k.
If you happen to go into the 45% bracket due to bonus or commission, then incrementally you have to pay back tax on the 12k.
If you get to 125k and you still have the 12k code, you owe HMRC almost 6k on top of the 45% you've already paid on that 25k.. Because 40 and then 45% ain't enough already baby, so pay 17k PAYE on 25k of earnings.
Meanwhile, should you be earning more than that, you can invest some money with an accountant who can help you 'optimise' your income to reduce your tax bill.
The whole system is skewed to keep the working class poor, and the middle class paying for everything. The top 1% meanwhile can just extract.
Higher rax rate (42%) kicks in at £43k in Scotland.
That is horrendous
Yet Scotland still vote SNP 😂
Yet Scotland still vote for the SNP 😂
I work on the railway (not in a union and don’t strike) but the industry is just throwing money at us. Every few months I see some sort of bonus or increase in my pay packet due to the strikes. I’m already happy with my wage and conditions however, strikes are definitely contributing to the increase in the transport sector wage.
That was eye-opening. Thank you for the reminder to be thankful for what I have. As an American, I’ve been frustrated that I can’t quite make it into the top 20% here, but I would be in the top 10% in the UK. Things must be really tough over there for a lot of people.
@@paulb3243Yeah, that’s accurate.
Not how it works. The uk is a significantly cheaper place to live so you wouldn't need to be earning as much to have a similar life style.
America is a different world. You guys earn megabucks compared to us even if your costs are also higher. I would be making $130-150k a year in the US but I earn nothing close to that in the UK.
@@paulb3243depends. It’s cheap in cities more expensive in rural. As a whole, as a proportion of income, the US is cheaper than the UK on everything but health care. Cheaper housing, food, energy, lower inflation and taxes. People often see how expensive NYC or San Francisco is, but most people don’t live there
obvious question but you've converted currencies right?
That is for the video, my take is the discrepancy of the highest earners are not PAYE and thus would somewhat backload these stats.
Why include the mega-rich? That would just skew the figures.
Frezzing tax bands until 2028 is disgusting!
Our tax bands are why our economy is trash compared to the US.
Well since there will be. GE before then it’s more than likely the Labour Party will decide if they stay frozen.
It will be crazy to have the full state pension being above the personal tax allowance so expect something to change
Unfortunately I cannot see this changing regardless what party is elected next year 😮💨
@@simplydividendsAgreed sadly
@@simplydividendsTories and Labour literally are two sides of the same coin now. When labour does win the election I'll bet my mortgage any talk of pr soon disappears as well as both parties rely heavily on the us Vs them two party system
Amazing what having a shift round in your spare bedroom will do for optics. Looking slick Damo (and the production) 😎
Literally moved the desk round and it changed everything 🤣
Live within your means. Put into a pension as early in life as possible and ensure your contributions increase as you earn more and likewise regularly save any surplus or overtime in investments ideally using ISA allocation, don't buy new cars, get onto the property ladder asap and you'll do alright.
This is good work.
Thank you
Excellent video 👏🏾👏🏾
Thank you 🙌
What would be interesting would be some measure of income taking into account the cost of living. Because housing in London is so expensive, I would expect that it’s actually not the most prosperous place to live as a median earner.
I was paying £1,250 a month just on rent in London eleven years ago. Now it's just £400 for rent and council tax just outside Birmingham City Centre so I agree, whilst it seems they earn more they don't get to keep it to spend as they wish - I certainly didn't and there's no way I could save for anything, let alone property!
London is divided between those who own property and those who rent it. Specifically, those who are mortgage free or who bought before the early millennium and those who bought after. The income generated by a London property alone is sufficient to finance a lifestyle outside London. Someone entering the London workforce without any connection to the city, who aspired to more than survival accommodation would need to earn an executive salary well into six figures.
I took a huge pay cut a few years ago to switch jobs. Meant I could move back to Glasgow. After travel and rent I had way more cash left in Glasgow.😅
@@ScotisticDad ..and Glasgow isn't a cheap city to buy in.
I have seen in the past comparison tables that show relative quality of life in different places across the U.K. based on a spending amount of 1k. So how far your money goes basically
I will try to dig them out and make a video