A FINANCIAL expert left families baffled after claiming that £12,000 is the best wage to earn.
Philly Financial on TikTok explained how the figure was the “most tax efficient salary” but she was branded “tone deaf”.
The financial coach was responding to a question from a follower on social media.
She was asked: “what’s the best salary to earn?”.
Responding to the follower, she said: “So the best salary from a tax point of view is £12,570, but I don’t know if many people in the UK would say ‘give me that as a salary‘.
“You pay no tax at this level, but obviously the amount you take home is just over £1,000 which isn’t very much.”
She wrote in the caption: “Replying to @Miles from a marginal rate of tax perspective you cant get better than 0 percent tax… but I don’t see many opting for that level. Those hit by the 60 percent tax trap utilise their pension allowance to reduce it so there are plenty of different options.”
Her feedback didn’t go down well with the cash-strapped Brits who follow her account.
“That is really tone deaf way of saying it’s the people who pay the least tax. At one point both my parents were working insane hours for that pay, it was so unethical from their employers,” one said.
“How is that the best salary? You can’t survive on that!” said another.
“The best salary for me would be somewhere in the 8 figures,” joked a third.
“Below the poverty line in any Western country,” argued a fourth.
“I struggle on £36,000” admitted another, with a crying-face emoji.
“It’s also significantly less than minimum wage for a full time job,” pointed out another.
The TikTok user who asked the question replied: “Ah yes! Thanks for answering.”
“You’re welcome! There are various scenarios where marginal tax is high but often things can be done to mitigate,” Philly replied.
She also said: “Tax is not the enemy, I don’t discourage anyone paying tax as it contributes to society.
“Clearly a higher salary provides higher take home pay which is much more preferable.
“I do however think the 60 percent marginal rate of tax at a salary of £125,140 is too high.”
