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So, over £200 down on the family income this month as of pay day tomorrow.
Ouch.
Why ?
I got my bonus...
The tax man took over half of it.
🙁
NI increases, I suspect.
Coupled to coming off the fixed tariff fuel, cost of petrol, and cost of the weekly shop I reckon this household is around £300 a month down in disposable income.
Mine was up, but that pushed me into paying tax so it’s just slightly up
Wasn't aware of an NI increase... i can't change it, so i'll just deal with it 🙂
Why ?
Yes the NI increases. And yes, nothing we can do about it, but I'd be more comfortable if I could trust it was actually going to where its purported to go.
Wasn’t aware of an NI increase… i can’t change it, so i’ll just deal with it 🙂
[edit] as Kryton says, if it was certain to go where it's supposed to then it might be (more) palatable, but when the criminals in charge have spaffed so much on mates contracts for PPE and tracking apps and ........ you forgive folk for losing faith this isn't another scam.
I'm not even opening it as it'll be something that tells me i've got less.... i'll find that out tomorrow anyway 😀
But hey... we're all still here, kicking along in our middle class lives talking on the internet about our £5000 bicycles and £30,000 cars...
It's all good 🙂
But hey… we’re all still here, kicking along in our middle class lives talking on the internet about our £5000 bicycles and £30,000 cars…
It’s all good
It isn't if you aren't comfortable and middle class. It's potentially a ****ing disaster.
All gone already
Moved house at the end of Feb, EVERYTHING increased and I'm still paying for storage (that's been resolved moving forward). Still we're not on the breadline and we're very lucky so I'm not complaining, just need to adjust.
Yup, I'm down a fair chunk this month now, was expecting it but it still stings.
I guess someone has to pay for the £37 Billion the Tories pissed up the wall on a track & trace system that didn't work and buying dodgy rip-off PPE from their 'Fast Lane' chums/donors.
Then you wouldn't be posting on STW.... despite what some may say, the vast majority on here ARE middle class... a bit of cutting of the cloth will see 95% of here fine and dandy i suspect.
I may be wrong, but i don't see the vast majority of STWers on the breadline and struggling to afford own-brand beans and a loaf.
Believe it or not there are folk on here who earn NMW (or just above) where £300 could be a weeks wage.
Some of you need a look outside your bubble
1.25% increase has cost you £200. 😳
I'm sure that's a big hit to take personally but working backwards, you're a long long way from the mean.
some of us are, some of us aren't. One poster already has mentioned getting a pay rise that just puts them into paying tax.
It's also a thought for those who don't have £5K bikes and £30K cars; this application of 1.25% across the board hits all when it could have been aimed more directly at those with higher income.
Some people won't be able to 'just deal with it' and it isn't all good. Record numbers of food bank users, for example.
I may be wrong, but i don’t see the vast majority of STWers on the breadline and struggling to afford own-brand beans and a loaf.
It's not about you, me, or the majority of "us".
It's about those who are already struggling and don't have "our" various advantages and good fortune.
Believe it or not there are folk on here who earn NMW (or just above) where £300 could be a weeks wage.
granted, but their NI hasn't just gone up by £200 a month has it ?
Can't tell as got bonus, next month will show how much it bites
Down about £400 here as Mrs S is now on half pay - long term absence due to breast cancer.
Perspective?
😉
Some people won’t be able to ‘just deal with it’ and it isn’t all good. Record numbers of food bank users, for example.
Indeed this. I don't know how some people and families are going to cope over the coming months and years. For some it's not a case of cutting back - that would mean not enough food, not enough heating and unable to afford the basics of clothes/school uniform/etc.
The crisis however is being denied by our Tory overlords and they've spent the last year focussed on themselves, not on the nation they serve.
Anybody else on PAYE also get a note on their payslip from HMRC? A nice political message about how NI increase was going directly into health and social care.
1.25% increase has cost you £200. 😳
I’m sure that’s a big hit to take personally but working backwards, you’re a long long way from the mean.
If it's just the NI increase, that would mean a household income of £200k.
Mine has gone up by £25. Meh.
I've manged to save £50/month by changing a couple of things, new broadband provider, cancelling an insurance, that sort of thing, plus a £45/month increase on take home pay this month.
And yet I don't feel any better off as everything else has gone up.
.
However, I am fortunate enough that I am in the position where I'm struggling to afford a holiday, rather than struggling to afford a meal so I can't complain really. (I earn 17% less than the UK median wage so not typical STW demographic. £5k bike? Tick. £30k car? Absolutely no chance, slightly rusty nine year old van)
OP - The NIC increase is 1.25% so I’m wondering if something else is at play here. Has your tax code changed since March, have you been enrolled into a pension?
Weirdly I got £300 more this month due to change in tax code, despite paying £100 more NI. Not sure tax code is now correct mind you so I'm expecting it to all be taken back in future.
If it’s just the NI increase, that would mean a household income of £200k.
Hmm yes , something else is afoot. I can't see my payslip only wages pending in my bank account. Maybe it's something else, we aren't on £200k! Maybe a tax code adjustment, I recently started a new job.
Anybody else on PAYE also get a note on their payslip from HMRC?
It's a suggestion directly from HMRC website. As most folks use a payroll system like we do, I saw that ours had this loaded automatically in this months payslips. I had to manipulate it to get it taken off. I'd imagine that most companies won't bother.
granted, but their NI hasn’t just gone up by £200 a month has it ?
Not sure if trolling
No, they won't be losing £200 per month, but they'll still be losing 1.25% of whatever they had* which when you can't break even already pushes them further into fuel or food poverty.
* more actually in real terms - if you earn £300 a week but after bills and the rest have £10 left, even if 1.25% off your income is 'only' £3.75 that's 37.5% of what they actually had.
Whereas if you have the disposable income that the impact is that you had £1000 a month left to spaff on C&H and now you only have £800 - you've still got £800, and why not pay the example above's share as well (3.75 x 4 weeks means they now only have £785.....and no, I am not worried for them)
It's 14°C in my "office"... I'm wearing two coats. This is the new normal. I have't worked out the NI impact on myself yet, but there isn't spare money. Not flown for 15 years. Just the one car that's nearing 15 years old. Yet I know we are are VERY lucky compared to many. Some people will be cancelling their skiing holiday next winter... others will be turning off their fridges and not washing their kids clothes. These two groups will probably rarely cross paths and speak to each other about what the cost of living crisis really means to each of them.
Anybody else on PAYE also get a note on their payslip from HMRC? A nice political message about how NI increase was going directly into health and social care.
I haven't, but then I'm in Scotland and as far as I recall, the NI increase was to go towards improving monies for health and social care in England...if that is the case then I suspect HMRC won't be letting me know that any increase I'm paying is not being spent in my country (of this 'great' union)...
I'm hoping I've completely misunderstood it all, but it does seem to bit odd for the increase to be used just in England rather than the whole island.
Barnett Consequentials?
I’ve absolutely no idea as I started a new job and won a back pay claim, this bumped me up a few levels. I’m very fortunate with the timing and feel for those who are going to struggle with their utility bill increases.
1. 1% National insurance increase = £40/m
2. 50% Electricity increase = £50/m
3. 15-20% increase in food prices = £80-100/m
4. 70% increase in heating oil price = £40/m
5. 20% increase in petrol price = £10/m
6. 25%(av) increase in streaming prices £8/m
7. 5.5% Council tax increase = £11/m
8. 11% water rate increase = £6/m
9. 9% Childcare increase = £40/m
All totaled = ~£300/m worse off than this time last year.
Wage increase this year was 0.75%. In real terms, since the start of the pandemic, I'm about 15% below where I was in real terms.
Almost everyone will be facing similar challenges - £300 is A LOT to me, but it's more than ALL for many people.
No difference to mine. I earn so little now i don't pay tax or ni.
Yes, its tough and i try to be as careful as i can be with the spending without compromising on meals. Like i dont survive e on toast and pasta.
Still blow 200 a week somewhow.
And its not coke and/or hookers
Then you wouldn’t be posting on STW…. despite what some may say, the vast majority on here ARE middle class… a bit of cutting of the cloth will see 95% of here fine and dandy i suspect.
As a couple we're down far more than £200 a month; oil doubling costs us about £150 a month, NI about £150, fuel will be another £100 and shopping probably adds another £50-100. All in about £450-500 per month.
Top work all you idiots who voted Tory in 2019 or Leave in 2016 (is that you Weeksy, you come across as that 'demographic') - hope you're all struggling.
EDIT - NI impact could be more as I'm paid 4-weekly so it's out-of-step
I haven’t, but then I’m in Scotland
I’m in Scotland too.
I work with poor and vulnerable people and am terrified of what it's going to be like this winter.
I'm in Scotland working for a Scottish organisation and got the nice message about my NICs being spent on NHS and social care.
As a couple we’re down far more than £200 a month; oil doubling costs us about £150 a month, NI about £150, fuel will be another £100 and shopping probably adds another £50-100. All in about £450-500 per month.
That's a different story/conversation though, the topic was more about him being hit directly on salary... we are of course ALL being hit in the wallet for the above yes.
I’m in Scotland working for a Scottish organisation and got the nice message about my NICs being spent on NHS and social care.
Being spent on NHS and social care in Scotland? If so, then I'm pleased to have misunderstood what it was being put towards as that should mean everyone is benefitting.
i appreciate it is very hard for some people, really not good. I'm a single father here in Sweden and the cost of living has rocketed recently. Fuel is (or certainly was) one of the highest priced in europe. However, as a general rule i think that people being more frugal and consuming less is generally a good thing.
The govt haven't spun it well but the NI increase is actually a decrease for anyone earning under £35k. The threshhold at which you start paying is in July going up from £9880 to £12570 which for most earners will more than cancel the percentage rise.
https://ifs.org.uk/publications/15929
I don't particularly object to the NI hike. Everyone is living longer and dying more slowly and messily.
hat’s a different story/conversation though, the topic was more about him being hit directly on salary
He didn't actually say that, he said:
So, over £200 down on the family income this month as of pay day tomorrow.
Then you wouldn’t be posting on STW….
I've been here for a long time, and through various changes in personal circumstances from completely out of work and scouring supermarkets for 10p loaves of bread, through *just* making ends meet, to relatively comfortable, and wobbling back and forth between states.
My interest in bikes, riding and chatting shit on the internet was a constant.
My social, work, and voluntary work circle encompasses people from refugees to millionaires, while they'll all be 'impacted' some are very much more impacted than others and I'm genuinely worried for some of them right now 🙁
From what I can telly my NI increase will be offset by the money I saved with a better mortgage deal. I have just had a pay rise though - yay me - but it's small, and only the third small increase in 11 years and I'm still about £15k down in inflation-adjusted terms.
But I'm comfortable currently which is the main thing.
He didn’t actually say that, he said:
Yeah that's exactly what he said. He never said anything about the increases in gas, water, fuel, food, but directly on salary. Which as he then stated was directly related to NI.
The govt haven’t spun it well but the NI increase is actually a decrease for anyone earning under £35k. The threshhold at which you start paying is in July going up from £9880 to £12570 which for most earners will more than cancel the percentage rise.
That's interesting, thanks. Hopefully the hand-to-mouth families won't have starved in the next 3 months.
Still doesn't change that even with changed thresholds, applying the increase across the board vs more at higher levels impacts the lower paid substantially more. To Flaperon's point, I don't dispute the need for a rise, it's how that rise is applied and the impact it has. One might speculate that not applying more of it to the higher paid and well off pensioners in pandering to the tory voting public?
I had an unexpected pay rise this month which the NI raise cut cleanly in half. Still better off so I'm grateful but I'd really like the other half back. We're making do in the household now with our combined incomes so we can cope with the cost of living rises, but there is no room for savings.
Can't imaging ever spending £30k on car though unless we win the lottery. Seriously do normal people spend £30k on car? Do they all live in mansions?
Bike: £2.5k
Car is a van: £5k
Comparing the NHS to equivalent services in similar countries, its clear that we don't get value for money. The UK has 6.1 MRI systems per million people, fewer than countries such as Estonia and Slovenia. The UK has fewer doctors per head of population than most other countries in the OECD.
The nhs budget per person isn't far off the median in similar countries, around £3k per year per person.
Looks like a leaky bucket to me. You don't fix a leaky bucket by pouring more water in.
i can't either Jonny... but look outside your door, many many many do...
Mine was £6500 i think... that's been about my threshold over the last 10 years, i can't spend £10k let alone £30k on a car... but looking out of the window, there's more cars that cost £20k+ than there is ones that were £5k.
The govt haven’t spun it well
Alternatively... jam tomorrow doesn't change the fact that there's less in the cupboard today. For many people, having a lower net income for the next 3 months might mean nothing... but for some their household incomes will be in an even bigger mess before we get to July. And then, the fiddle back the other way will be swallowed up by all the rising costs.
Seriously do normal people spend £30k on car? Do they all live in mansions?
No, they spend ~300 quid a month over 36/48 months and lease it.
I don't even know what my car costs (retail) i just lease it through the company (all i do is put fuel in it, *everything* else is covered).
Looks like a leaky bucket to me. You don’t fix a leaky bucket by pouring more water in.
Oh, it's playground level politics time, is it?
It costs money to fix a bucket or buy a new one.
i appreciate it is very hard for some people, really not good. I’m a single father here in Sweden and the cost of living has rocketed recently. Fuel is (or certainly was) one of the highest priced in europe.
>I'm in the same boat as you, though I've not really noticed the cost of living increases so much due to other changes, and they certainly don't seem to be as bad as they are in the UK, but fuel is eyewatering now. Compounded by the drop in value of the SEK. Luckily i locked myself into a fixed rate 3 year electricity contract in January, so i'm a little insulated from that...
not wanting to derail on car costs - but given they all basically do the same thing (transport 4-5 people plus some luggage from A-B) I am amazed in the difference in costs. There was a post on here a few weeks back where their £50-60K car was now in short supply and could be sold back for more like £60-70K as a used one (IDK the numbers exactly, you get the gist). What does a £60K car do that a £20K car doesn't, really.
The NI changes have cost me less than 200p... How the other half live. 😆
We got very lucky as regards to electricity bill hikes, in that we signed up to a two year fixed deal in early '21, otherwise money would be rather tight.
Looks like a leaky bucket to me. You don’t fix a leaky bucket by pouring more water in.
Agree in principle, but this is another thread altogether (must exist already?).
EDIT:
What does a £60K car do that a £20K car doesn’t, really.
This too!
We've just moved from a new build and pretty energy efficient flat to a house (just in time for the energy price rises), new nursery for the child, so because everything's changed the NI increase (and everything else) just combines into the general 'life is more expensive now' feeling.
As we've moved from London we don't yet have a car and I just can't fathom how people afford what they're driving around in round here. And given how much they cost, why they even bother with something so pricey?
We are very lucky though so absolutely no complaints about our financial circumstances. Second child due in August though so will probably be making some preemptive cutbacks over summer.
What does a £60k car do? Not a lot. I drive a £60k electric Volvo at work. In normal use it isn't any more comfortable or faster than a cheap small hatchback. For long journeys slower as you'll need to charge it.
The fleet also has diesel Seat Atecas doing the same job at around £25k.
But the EVs save the planet and the taxpayer is paying for the cars. (NHS).
What does a £60K car do that a £20K car doesn’t, really.
Like anything else expensive - it does the same job but a better, and as such is nicer to own. So if you have lots of money, you could opt to spend it on a nice car. That's how it works.
Seriously do normal people spend £30k on car?
Depends what you mean by normal. We all live in different worlds, and it can be surprisingly easy to drift into another if your circumstances improve. That's how you get people on seven figures moaning about the cost of things just like people on average wages. You cut your coat to suit your cloth, everyone does. The phrase works both ways.
What does a £60k car do? Not a lot. I drive a £60k electric Volvo at work. In normal use it isn’t any more comfortable or faster than a cheap small hatchback.
I have a car that cost nearly that much when it was new (9 years ago) and it is MUCH nicer than the one it replaced which had been £28k about 7 years before that. Quieter and more comfortable and more relaxing to drive, but also handles much better on windy roads. And the stereo's better. So yes expensive cars are definitely better - or they should be - but they aren't better value.
What does a £60K car do that a £20K car doesn’t, really.
I've driven a Ferrari 575. I had a little diesel Peugeot 306 at the time.
The difference between them was as big as the difference between, say, a Santa Cruz 5010 and a BSO.
All moot, as I can't afford a Ferrari or Santa Cruz, but if I could i would!
TBH, the only thing i'd pay more for is better fuel economy and a more comfortable place to sit.
Current car i can do 8 hours straight with only a 10 minute break for the toilet, and 60+ mpg.
Rental car i had in a couple of years ago had to stop every hour or so as my legs went to sleep and my back went into spasm (and that wasn't a cheap car either, about £28k IIRC)
The nhs budget per person isn’t far off the median in similar countries, around £3k per year per person.
Looks like a leaky bucket to me. You don’t fix a leaky bucket by pouring more water in.
Careful, when you've lost access to the NHS, which is what they are trying to get you to agree with (and note the success in 2016 when they last tried to persuade ordinary folk to **** up their lives), you'll quickly find out the £3k does nowhere when it comes to private healthcare - USA is 3x this.
I kind of get it for the Ferrari, particularly if you do track days. Just to drive at 1/10th of it's capability around the M25, not so sure.
Same with genuine utility type vehicles, farmers do need 4x4's and so on.
I know if you have it you can spend it, your prerogative, but for the vast majority of folk all they do is carry people and sometimes things from A-B, and I get a desire to do that in a modicum of comfort and style.... but spend 3x as much - doesn't compute to me. It's a car and it'll still be stuck behind others at the queue for the lights.
The govt haven’t spun it well but the NI increase is actually a decrease for anyone earning under £35k. The threshhold at which you start paying is in July going up from £9880 to £12570 which for most earners will more than cancel the percentage rise.
Thanks for the clarification - I earn less than 35K and I was wondering why I paid more NI this month! Didn't realise the threshold wasn't going up til July. It'll be like a little payrise...
I've also arranged my life around not driving much, so appreciate if you're needing to do long miles or have specific utility requirements (as noted above) your needs are different.
There's also something on Ars Technica today which suggests that, if you can afford it, the pricier EV is better for the environment after two years.
What does a £60K car do that a £20K car doesn’t, really.
What does a £10k bike do that a £20 bike from the tip doesn’t?
You could literally apply that theory to everything in life.
Yes, if you spend the money on a more comfortable car then that's what you get. I drove 3hrs in a £30k EV on a windy road after my holiday, I was pretty tired by the end and my shoulder hurt for a day afterwards. Driving the Merc is far more relaxing, and the cost on the loan isn't a lot more than the cost of the EV lease, although it's 8 years older. It's currently in the garage mind, and it costs 10x more per run.
What does a £10k bike do that a £20 bike from the tip doesn’t?
depends. You couldn't race a £20 bike competitively, it probably wouldn't even survive a reasonable vigorous off road ride. But if the purpose is to pedal 2 miles a day to and from work carrying your laptop in a rucksack, point is valid.
What a belter of a thread!
OP - "Wow, pay has gone down this month due to tax change"
Argument 1 - "look at you getting paid too much, don't you know there are less fortunate folk around. You don't deserve to complain"
Argument 2 - "And you probably spend your disposable income wrong too"
FFS! STW can be as predictable as it is depressing sometimes.,
But hey… we’re all still here, kicking along in our middle class lives talking on the internet about our £5000 bicycles and £30,000 cars…
It’s all good 🙂
Clearly I read this differently to some of the posters above.
I interpreted as an acknowledgement that actually Weeksy, and the majority of the posting population on here, are actually very comfortably off and he accepts that and is grateful for it.
Now of course there are many people on the forum who will be impacted, and the way the increase is targeted is indeed criminal, but let's try to realistic about where each of us stands and what genuine impactit has on us.
Thanks for the clarification – I earn less than 35K and I was wondering why I paid more NI this month! Didn’t realise the threshold wasn’t going up til July. It’ll be like a little payrise…
Thinking about this, the govt have surely ballsed this up. It's the week before the local elections and the majority of earners have less net pay this month, thanks to a tax rise.
And the mitigating threshold increase is delayed until after the election! Someone didn't plan this very well.
Someone didn’t plan this very well.
You're assuming that it was planned.
My OH earns less than 35K but her take home this month went down 14 quid.
edit - just seen above - new threshold not till July. Sly dogs.
MCTD + 1,000,000
I would expect random tax code changes to make a bigger difference than the NI increase.
Will find out tomorrow when we get paid.
I believe the amount which you start paying income tax will rise on 6th July? I think this'll return take home wages to pre April levels for the less well off.
To be perfectly honest @Kryton57 - if the NI increase is costing your household an extra £200 a month, you could damn well afford to pay more given your combined income is over £200k a year which puts you in the top 1%.