couple struggling with 200k pa

[diseasex]

So what are you planning to do with all that money?
It seems from the experience of most of the contractors on this board, at some point that cash is going to go up in flames on your ex wife and a divorce or to HMRC in an IR35 raid.

Thats a lot of hard work to see walk out the door with anyone

I'm opening SPV and start investing in properties. As soon as I found one I like... For now i have all in funds and shares with about 4% profit total

[bobspud]

I'm opening SPV and start investing in properties. As soon as I found one I like... For now i have all in funds and shares with about 4% profit total

Good luck. I hope it works out for you.

[ChimpMaster]

I'm opening SPV and start investing in properties. As soon as I found one I like... For now i have all in funds and shares with about 4% profit total

Yes good luck and great to see that you're planning well for the future. Timing could work out well for you once the Tories' tax rape on BTL takes hold over the next couple of years.

[diseasex]

Yes good luck and great to see that you're planning well for the future. Timing could work out well for you once the Tories' tax rape on BTL takes hold over the next couple of years.

Actually that 3% tax makes things more difficult, especially for more expensive properties... so can that be a good time? Less competition when it comes to buying?

Thanks

[ChimpMaster]

I earn in excess of 200k pa and certainly do not feel rich. After pensions and et all, you're only really clearing 10/11k per month. Few holidays, car etc and it's not exactly a fortune is it.i don't send the kids private, but if I did the anything I save would most likely disappear.

First class travel ain't cheap you know.

Perhaps you're comment was tongue in cheek but I know what you mean. A number of my friends have earnings ranging from £100k (contractors) to £250k (senior management) to 500k (global management) and only the one on £500k has any real display of wealth - but not stupidly (650k house, nice long-haul holidays, 2 kids in private school, nice BMW M sport) because he's nearing 50 years old and is planning for retirement in a few years.

The others have decent houses but not massive mortgages (TBH they bought years ago), and drive average cars like an Audi A3 or a Volvo XC90.

[ChimpMaster]

Actually that 3% tax makes things more difficult, especially for more expensive properties... so can that be a good time? Less competition when it comes to buying?

Thanks

The 3% SLDT surcharge is just a minor headwind.

Clause 24 - interest relief removal - is the game changer and the reason why you need to look at using SPVs. My portfolio is all in personal names and I can't move it into a SPV yet, but I'm not highly leveraged so am taking time to review my options.

[bobspud]

Yes good luck and great to see that you're planning well for the future. Timing could work out well for you once the Tories' tax rape on BTL takes hold over the next couple of years.

I don't know how it is in Cornwall but we are already starting to see the first pips squeaking up here in the west country.

I think there is a wider point to this story that isn't going to be received well by the wider world that is struggling on 20k or less. People that get these big jobs, do it because they want more for themselves or families. You might not see a value in having 20 pairs of Nike trainers and 1 pair of feet or thinking nothing of spending £40 on a lunch time bottle of red to go with a burger or steak. But for some contractors thats one of the motivations for putting more effort in.

When I started in IT the difference between the richest in society and the contractors was negligible Ok the contractors probably didn't have a few million in a trust but when it came to wanting a decent house or car having a job over 100k would sort that.

Our problem is we have let so many scummy little crooks steal our country and launder money here, that there is a class of workers in the UK that now feel royally screwed. Why would you want to do a job as stressful as to earn 200k and still be stuck in Croydon for the pleasure of a 4k a month mortgage?

Yeah first world problems suck...

[MarillionFan]

Perhaps you're comment was tongue in cheek but I know what you mean. A number of my friends have earnings ranging from £100k (contractors) to £250k (senior management) to 500k (global management) and only the one on £500k has any real display of wealth - but not stupidly (650k house, nice long-haul holidays, 2 kids in private school, nice BMW M sport) because he's nearing 50 years old and is planning for retirement in a few years.

The others have decent houses but not massive mortgages (TBH they bought years ago), and drive average cars like an Audi A3 or a Volvo XC90.

I'm in the middle example. After tax(which is higher than 45% because a lot is made up for shares classed as BIK ) I clear a six figure number but in the grand schemes it's not life changing.

40k into a pension. Living costs maybe 36k a year, holidays 10k a year and a couple of ISAs for the future it's all gone.

If you wanted private school and new cars every other year, plus the display of wealth I think you need to be closer to 500k PA.

Most salaries just allow you to live. And that's it.

[dx4100]

Huge mortgage and sizeable private school fees I'm guessing.

[dx4100]

40k into a pension. Living costs maybe 36k a year, holidays 10k a year and a couple of ISAs for the future it's all gone.

Most salaries just allow you to live. And that's it.

Your living is so far beyond what most people would consider "living"....

So we are all hard done by contractors