"Earning £120k is Not Good": 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 £120,000 (N199 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 £150,000 (N249 million) so as to still have money left after tax
A UK-based lady said there are so many things income earners in the country lose once their salary reaches £120,000.
The lady noted that earning £120,000 may not be the best for a UK resident since the person may be classified as middle class.
Source: UGC
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 £12,500 and child benefits.
The lady, @astoldbydrhunnay noted that the harder one works in the UK to make more money, the less money they take home.
She said she now understands how the UK financial system works and that people are better off earning less than £100,000 since earning more means paying more tax.
She captioned the video:
"£120,000 is the worst salary you can earn in the UK."
Watch the video below:
Reactions as lady explains UK salary system
Mixed opinions trailed her post. Legit.ng gathered some of the reactions below:
@sei2023 said:
"How do you earn 120k as a doctor?"
@Gibril said:
"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 stated:
"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."
Lady sacked from a job that pays N70k
Meanwhile, a Nigerian lady who got a job with a real estate company was relieved of her appointment after a disagreement.
The lady shared her story on TikTok, saying for all the jobs she did at the company, she was placed on a monthly salary of N70,000.
Jimmy Julia said trouble started when she was asked to come to work on a Saturday, and she refused.
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Source: Legit.ng
