How Much Do You Have To Earn To Put You In The Top 10%?

[BradNaylor]

Thay have been discussing this on a Radio 4 programme over the last couple of days, and I didn't believe the figure given for the annual salary that would put you in the top 10% of earners across the country.

So I just googled around and it looks like it's true.

I've asked a few people what they thought the figure is and everyone's guess was in six figures.

The actual amount?
















£43,000 :shock:

Makes me feel a bit better about myself, to be honest!

Cheers
Brad

 

[kityuser]

I`d say about right.

feeling good too!

Steve

 

[Karl]

I heard that - I can't remember what the figure was to put you in the bottom 10% - but it seemed relatively "high".

Cheers

Karl

 

[Anonymous]

I read a BBC news article about this. Sorry to disappoint but their view was that the top 10% was probably much higher than that. This is due to the way they've worked out the top 10% salary (sorry, can't remember how). They've missed out a whole load of people who most likely earn a lot more.

Still, it made me feel a little happier about what I earn.

Dave

 

[wizer]

why is it a good feeling to be in the top 10%? It doesn't feel any different to me?

 

[OPJ]

Well, I suppose it is 10% (somewhere around six million) as opposed to be in the 'Top Ten'... :?

 

[StevieB]

I have a sneaky feeling this only covers PAYE taxpayers, not the self employed or the retired. Most of the mega earners are not PAYE.

Steve

 

[BradNaylor]

I have a sneaky feeling this only covers PAYE taxpayers, not the self employed or the retired. Most of the mega earners are not PAYE.

Steve

On reflection I think you may be right, Stevie.

That would explain my puzzlement. Most people I know are self-employed tradesmen - plumbers, electricians, plasterers etc, and £40k a year is about what a good tradesman would expect to make if he pulled his finger out. Yet with all due respect I would hardly expect a plasterer to be in the top 10% of earners overall.

The other thing to remember is that PAYE figures do not always reflect true earnings. I am employed by my own limited company and take a tiny salary - just above the NI contribution threshold. The balance of my earnings I take in tax-free dividends from the company's profits. All legit and standard practice.

All this means that millions of well-paid people are excluded from the statistics.

 

[MikeG.]

The balance of my earnings I take in tax-free dividends from the company's profits. All legit and standard practice.

:shock: :shock: Dividends aren't tax free!! They are very tax-efficient........but not free. Unless, of course, your accountant knows something mine doesn't!

Mike

 

[Anonymous]

Blimey, been in the top 10% for 15 years and didn't know it!!

 

[Ironballs]

Yep, depends how you look at it, if it's based on PAYE then I'm in the top 50% in our house, if it's based on all income including divis then I'm in the bottom 50%

 

[BradNaylor]

The balance of my earnings I take in tax-free dividends from the company's profits. All legit and standard practice.

:shock: :shock: Dividends aren't tax free!! They are very tax-efficient........but not free. Unless, of course, your accountant knows something mine doesn't!

Mike

I may be wrong of course, but I'm sure the way my accountant explained it was that the company paid corporation tax on the profits, but that I paid no tax on the dividends.

As at lower levels corporation tax is levied at a lower rate than income tax, a significant saving is to be made. If nothing else there is a big cash-flow advantage as CT is paid in arrears and self assessment partly in advance.

At he end of the day I just give him a shoe box full of bills and let him get on with it!

Cheers
Brad

 

[matt]

So "they" are right. Money doesn't necessarily buy you happiness. Your income in relation to others is what makes you happy.

 

[Ironballs]

No, it's the number of shiny things you have that defines happiness

 

[Doug B]

Happiness for me is having money over at the end of the month, once all the bills are paid.

 

[Doctor]

£43,000 :shock:

Makes me feel a bit better about myself, to be honest!

Cheers
Brad

Some one sounds a bit smug there was me thinking it was grim up North, by the way Dan..... worst "look at my wad" ever ... you need to post a few pictures of your next motor :lol: :lol: :lol:

 

[jhwbigley]

At he end of the day I just give him a shoe box full of bills and let him get on with it!

:lol:

 

[Jenx]

Money / Earnings don't amount to anything if you haven't got your health, and if you haven't got your real friends and the love of your family.
If a fairy godmother appeared right in front of me and said.. choose, £5 million quid or be rid of diabetes ... I'd not even need to think... an instant decision, no question about it :wink:
Money is a mere distraction from what is really important in life.

I've a mate who says 'money won't buy you happiness, but it does make misery a hell of a lot more bearable' :lol:

'tis the root of all evil, I tells ya :wink: :lol: :lol: :lol:

I'm surprised at the figure given though... I'd have thought it would have been in the +£150 / £200K kind of area...
But as alluded to... statistics can often be made to tell some 'odd' stories :lol:

 

[BradNaylor]

Some one sounds a bit smug there was me thinking it was grim up North, by the way Dan..... worst "look at my wad" ever ...

Not as smug as this bloke;

Blimey, been in the top 10% for 15 years and didn't know it!!

As for the North/South thing, that is why the £43k figure suprised me so much. While that would be seen as quite a high wage up here in the industrial wastelands, achievable only by the very elite such as barristers, surgeons, and cabinetmakers, surely down in the soft south everyone earns that much...


...clearly not!

Given the ridiculous cost of living down there, it's no wonder that debt levels have got so out of control as the population at large has spent the last 30 years living beyond its means.

 

[StevieB]

surely down in the soft south everyone earns that much...

I have no idea, but have made a mental note to ask my Butler how much the cook gets paid and will get back to you :wink:

Steve.