MattW

BBC NEWS | UK | Magazine | Just what is a big salary?

Mean is 26020
Median is 20801
Top 10% > 44881
Top 5% > 58917
Top 1% > 118027

Figures for PAYE salaries only, counts you out Matteeboy

Geezer

I get paid in the top 10% bracket, but I earn below the bottom

Geezer

Ant

I'm sure matteeboy and natteeboy is the 1% I earn a but over the mean

EddScott

3 shillings and 6'spunce

And a farthing at Christmas

ChefDude

i'd be interested to know any of us SN boasters are in the top 1% who are not contractors/directors.

Cocker

iTrader: (3)

In 1654, Oliver Cromwell was paid £70,000 a year, an astronomical sum

I'd like to earn that now!

Ted Maul

yes i am and most of my colleagues. why would that be of interest to you, or are you referring to specific sn people?

EddScott

Because we'd all like to borrow £5 please.

I have paypal.

Thanks mate.

jonc

I doo balleev I am con-sidda-rabbly richer than yow!

Matteeboy

Not exactly sure and it doesn't matter. The key is to not pay over half what you earn on NI and PAYE. A well managed company pulling in £100k net profit is better financially for it's directors than a salary slave on £150++K

MattW

Agreed

SJ_Skyline

It doesn't matter what you earn as long as you are happy.

ChefDude

Just interested in what job titles these people have

chocolate_o_brian

iTrader: (22)

+1. I'll be on £5119 for the first year doing my apprenticeship, but I dare say I'll be a lot happier than some who are on considerably more, because I will enjoy my profession

richieh

6.75-7.75 per hour weekdays 10.50-11.75ish on weekends-however many days a week I can get.(agency lorry driver)
cheers richie

cookstar

iTrader: (6)

Top 1% here, PAYE.

PaulC72

Was nearly at the top 5% until 12th June.

Now way way down the scale as jobseekers is only 64.37pw.

Living off redundancy ATM at least its mostly sunny ;-)

Waiting for the job to drop.

I was just a normal employee doing a normal job....I suppose its normal anyway lol.

hannogo

You need to move up to the Rainy City! £9.60 per hour+£12.60 O/T

hodgy0_2

are you defining net profit after all deductions?

a wage slave on 150k a year is not a bad place to be especially when you are on holiday, (5 weeks PAID) and check your account from the beach only to see that your salary cheque has gone in

ahhh time for another G&T

Timwinner

iTrader: (3)

Its all relative, I dont know about the cost of living in many places are I have not moved about much but in West Surrey if you earn below £30k you have NO chance of getting a house etc, so you could consider yourself poorly paid.
If you live in Hull £20k a year will get a 2/3 bed house, so you could consider you are well paid.

Anyways talking about wages is sooooo 2007, Im all about "the environment" now

hodgy0_2

ps not knocking people who make a success of running their own business

I tried it --- never really made it passed the crucial 7 year mark, so I have maximum respect for people who can do it

(I think 80% of business’s fail between 5 & 7 years)

Matteeboy

Yep.

If our company made £150k in net profit (no comment) we'd see around 80% of it. If I earned £150k I'd be very lucky to see £60k of it once absolutely everything was deducted. I honestly think it's a mugs game. And of course no one on £150k will say they see a hatefully small portion of it - they'll say they are on £150k.

One thing I have learned is to maximise what your company earns - don't take the pi55 and claim for stupid stuff but if it is possible to use the company to buy stuff, pay some of a rent (home office), bills, etc then claim back mileage, etc then you see SO much more of it. It's almost as important as making decent money in the first place.

Our company doesn't make vast profits but they are good for the size, with a healthy client base. Yet it provides more than enough income for us, we get to share looking after the little one (we are both Directors and know how to run it single handedly), get to nip out for the odd surf/cycle/speed boat trip/etc, don't need to pay for childcare, pay modest rent, blah blah blah which means a comfy lifestyle (but not flash) that doesn't rely on doing mental hours every week. Also got a lot of freelancers doing work for us - we get a cut but don't have to pay hideous wage tax/NI/etc. There is also no inter company bickering or politics - both aim for the same goal.

Some of it's luck, some of it isn't but I wouldn't change it for any job in the World.

And now I have provided enough ammo to be lambasted for months...

Bring it on...

Spooky Mulder

What a disappointment to only have five weeks holiday when you could have six weeks and only work three days a week in between

JamJay

Unless my next pay rise takes me substantially over £40,000 (40% tax) then i'm happy sticking with anything in the £30k's. I'm barely in my 20's though and building my empire
Have often thought though, i'd rather be happy in my job and earning little than alot and being bored or stressed. My dad was a bit like that, became a big-wig but we saw hardly anything of him and when we did he was always moody. He's now newly SE but much much happier.

I'd especially think nothing of dropping all I have and going travelling, winging it and earning peanuts (maybe literally) in a few bars to get me by because I know i'd have the time of my life.

Spooky Mulder

Your calculations are flawed. At £150k salary your net income would be around £95k a year allowing for pension and NI contributions.

A net profit of £150k is a much larger gross than a £150k salary so it is not a fair comparison.

A fair comparison is £150k gross profit v. £150k salary. Then you get like for like.

On the £150k gross profit you will have payroll, non-recoverable expenses such as IT and consumables, accountancy fees etc. If you are a Mom and Pop shop the your payroll and expenses probably come to around £15k. This leaves £135k taxable profit on which the tax will be £28,350.

This will leave you with £106,650.

If you take this as dividend you will get £70k tax free (assuming you and your fantastically bodied wife are both Directors) and will be taxed at 35% on the remainder giving you £93,822.

Plus your personal allowances will leave you with around £102,000 with no pension or national insurance for your own business v. around £95,000 including pension and NI as a wage slave.

Not that much of a difference.

Of course your original example of £150k net profit is very favourable but gross earnings are much higher!!

PS Can you tell I am on a long boring train journey

njkmrs

I certainly dont earn enough to boast about it ,but Im happy with my lot to be honest .
Only a Lottery win would make Life Complete .!!!

MikeCardiff

iTrader: (2)

What you earn is basically irrelevant as it depends on your outgoings and the sort of lifestyle you have.

For example, someone on £26K per year with no mortgage, kids left home and with no other debts can be much better off than someone who earns £75K a year but has a huge mortgage, 3 kids, coke habit, loan for the car, credit cards etc...

It just depends on what your priorities in life are, and what you like to spend your money on.

I'm quite happy with the amount I earn, and live well below my means ( which balances out nicely with my wife, who managed to live above hers ) but I would much rather earn just enough, and enjoy what I did, than get paid twice as much and hate my job.

SJ_Skyline

It would be nice to earn enough to be able to develop a coke habbit

Matteeboy

Spooky - they were figures plucked out of the air (more or less) but needless to say we see a lot more of our profit (gross and net) than we would do on a comparable salary.

Plus we don't need to go to higher rate tax band salary (just no need - we dip slightly under apart from one year where we got our sums wrong!) so keep PAYE contributions low - minimal salary + dividends, claim lots direct, etc. All completely legitimate and makes a huge difference.

davyboy

I have an fair salary, but a better pension!

Would cost over 10k a year to fund it yourself...apparently.