Tuesday, 3 July 2018

My marginal tax rate

For every £100 + VAT my employer invoices clients for work I have done, they pay me about £40 gross.

This nets down to £23 after income tax and NIC at my marginal rate (the overall average is a bit lower than that).

My wife decides how I spend two-thirds of my income. This is mainly private school fees for her social status reasons, officially known as "I just want what's best for the children", but either way it is rent, ransom or tax.

This leaves yours truly with £8 pocket money to spend on the finer things in life, out of the £120 that the client originaly paid, a marginal tax rate of 93% or so.

4 comments:

Lola said...

Yes. And...? Most blokes (dads) are in that exact same position. I can tell you that when you get to be grand-dad it does get a little better. Not much. A little.

Mark Wadsworth said...

L, I'm sure most blokes (dads) are, I did this for all of us.

Lola said...

MW Yay!!!

Ben Jamin' said...

@MW

Try to think of it as other people investing your income, on your behalf, because they know what's best and have your interests at heart.

Convinced? Vote Labour.