UK-Based Lady Explains How Tax Deductions Work on High-Income Earners
- A lady in the UK said earning a high amount of money monthly does not mean that one is doing well in the country
- According to the lady, anyone earning around R2.8 million in the UK has a lot to lose, including tax exemption
- She said to be truly financially free in the UK, one has to earn around R3.5 million
A UK-based lady said there are so many things income earners in the country lose once their salary reaches R2.8 million.
The lady noted that earning R2.8 million may not be the best for a UK resident since the person may be classified as middle class.
Source: UGC
UK-based lady shares how high earners pay more tax
She revealed in her TikTok video that being classified as middle class means the person would lose many things, including a tax-free allowance of R294k and child benefits.
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The lady @astoldbydrhunnay noted that the harder people work in the UK to make more money, the less they take home.
She said she now understands how the UK financial system works and that people are better off earning less than R2.3 million since earning more means paying more tax.
She captioned the video:
"£120,000 is the worse salary you can earn in the UK."
Watch the video below:
Reactions as lady explains UK salary system
Mixed opinions trailed her post, and netizens shared their thought:
@sei2023 asked:
"How do you earn 120k as a doctor?"
@Gibril added:
"Hell, you can contribute up to £60k into your pension and get tax relief on this."
@Eguono Love said:
"The monthly take-home pay for £120k is still more than the home pay 100k, so what is the issue?"
M & M Fam | Content creators commented:
"The hardest you work the more broke the system make everything you said is true I always say that they punish we hard working people."
Debiyi added:
"You are wrong, your personal allowance drops, but you don’t get taxed on the full amount, tax system is tricky but you can make what you lose by knowing how to claim back."
Data Scientist shares frustrations over R25k tax deductions
Briefly News reported on the story of a data scientist who shared his frustration on social media about high taxes deducted from his salary. He questioned why companies can't give total salaries and let people pay taxes directly to South African Revenue Services.
Netizens sympathised with him and shared their own experiences of high tax deductions.
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Source: Legit.ng
