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Jonnybegood

Average Uk Wages I Believe Could Be More Than Official Figures

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For a number of years on here people have kept going on about average uk house prices and average uk wages, officially average wages are around £26k per annum and uk house price £155k . So with a 20% deposit still leaves a 6 x income mortgage that is unaffordable.

What these figures do not take into account are those people with second jobs, i.e Doing work on their days off and not declaring

Self employed who do cash jobs and don't declare, these can often amount to extra thousands per annum and tax free.

Those with large private pensions and still working

Those with BTL and getting regular monthly income

Benefit claimants doing additional work on the side

Those on tax credits and earning above the threshold

Those with tax havens living abroad

I could give you many examples of the above, I had 2 guys working on my property over Christmas (Bit of rendering), legit building company who quoted £2800 to do the work over a 2 week period, this eventually ended up costing £2400 cash in hand with no paperwork and they got it done in just over a week. (Wonder how much of that Mr tax man will see).

There are cleaners in the offices I work who tell me of their partners who do cash in hand jobs allowing them to still claim tax credits

And there are engineers at work who work a shift pattern of 4 days in and 4 days off, on their days off they will do domestic electrical work, again the majority undeclared, one told me at a party over Christmas after having a few too many that last year he earned just as much on his days off as in work due to the none payment of tax, and he earns approx £50k per annum.

Not sure how big a problem this is but surely it would throw the official figures, so maybe if all of this was taken into consideration then official average earnings figure would be more like £30k plus and when combined with low IRs make it easy to see how people afford these houses and how select numbers can buy 2nd, 3rd 4th properties to let out.

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Black market is always there, even before the crash. Not sure how it might skew the figures, but there's no way of telling. Which is kind of the point, I guess.

There is if you are diligent during my time working as an accountant (don't now) you would spot some seriously suspicious things. First you would see small stuff where a plumber or what ever accidentally added in his receipts from his hidden receipt book.

Or you would see people who washed windows or ran sandwich shops which had year after year losses driving around in 50K cars. Hell I even remember doing accounts for some bloke and phoning up for some repairs to be done and he turned up, it wasn't declared at all.

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I wonder if the creep of means-tested benefits (tax credits, discounts on children's tuition fees, child benefit) has meant more people choose to devote more time to "working on the side". Not so much to avoid income tax/vat etc (although that is obviously an appeal) but to avoid additional costs and/or losing existing benefits.

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Yes but then you have to add in the other side of the equation.

IIRC The official figures are for males in a full time job for over a year. So they completely ignore part time workers, female workers and anyone not in a job for at least a year.

I imagine it all balances out somewhat.

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I wonder if the creep of means-tested benefits (tax credits, discounts on children's tuition fees, child benefit) has meant more people choose to devote more time to "working on the side". Not so much to avoid income tax/vat etc (although that is obviously an appeal) but to avoid additional costs and/or losing existing benefits.

Absolutely, the payroll dept I used to work with would have people declining pay increases so thet could keep their government subsidise. The owners would cheekily say that they would give them cash instead.

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For a number of years on here people have kept going on about average uk house prices and average uk wages, officially average wages are around £26k per annum and uk house price £155k . So with a 20% deposit still leaves a 6 x income mortgage that is unaffordable.

What these figures do not take into account are those people with second jobs, i.e Doing work on their days off and not declaring

Self employed who do cash jobs and don't declare, these can often amount to extra thousands per annum and tax free.

Those with large private pensions and still working

Those with BTL and getting regular monthly income

Benefit claimants doing additional work on the side

Those on tax credits and earning above the threshold

Those with tax havens living abroad

I could give you many examples of the above, I had 2 guys working on my property over Christmas (Bit of rendering), legit building company who quoted £2800 to do the work over a 2 week period, this eventually ended up costing £2400 cash in hand with no paperwork and they got it done in just over a week. (Wonder how much of that Mr tax man will see).

There are cleaners in the offices I work who tell me of their partners who do cash in hand jobs allowing them to still claim tax credits

And there are engineers at work who work a shift pattern of 4 days in and 4 days off, on their days off they will do domestic electrical work, again the majority undeclared, one told me at a party over Christmas after having a few too many that last year he earned just as much on his days off as in work due to the none payment of tax, and he earns approx £50k per annum.

Not sure how big a problem this is but surely it would throw the official figures, so maybe if all of this was taken into consideration then official average earnings figure would be more like £30k plus and when combined with low IRs make it easy to see how people afford these houses and how select numbers can buy 2nd, 3rd 4th properties to let out.

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I know many a young couple who are both working and want to buy ( and they should be able to) but are on minimum wages and don,t earn the £26k you state. A lot of the of the families who are getting £26k plus are on benefits and have no interest at all about going to work never mind buying a house, there are a lot of arguments about affordability and as for back pocket earnings they cannot always be claimed as earnings when aplying for a mortgage as most of self cert has now gone.

I have always had reservations about the goverment earnings figures anyway as they have always seemed very high to me.

Edited by awaytogo

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I could give you many examples of the above, I had 2 guys working on my property over Christmas (Bit of rendering), legit building company who quoted £2800 to do the work over a 2 week period, this eventually ended up costing £2400 cash in hand with no paperwork and they got it done in just over a week. (Wonder how much of that Mr tax man will see).

So you've saved yourself £400 pound by being dishonest. Is it really worth it?

I suppose If you think it's ok for mp and banksters to do fraud it's ok for you to do it.

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I know many a young couple who are both working and want to buy ( and they should be able to) but are on minimum wages and don,t earn the £26k you state. A lot of the of the families who are getting £26k plus are on benefits and have no interest at all about going to work never mind buying a house, there are a lot of arguments about affordability and as for back pocket earnings they cannot always be claimed as earnings when aplying for a mortgage as most of self cert has now gone.

I have always had reservations about the goverment earnings figures anyway as they have always seemed very high to me.

The median figure of about 18500 is a better use that the mean.

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Everybody earns 50K dontachknow.

As a visitor to a few firms and dealing with their IT, I have on occasion seen the wages of the employees in lists.

FEW earn even 20K....Many SAY they earn much more.

Indeed, in the past having employed directly people who have boasted their earnings, the P45 was a revelation.

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Average wages could be going higher as the inequality gap gets wider.

Bankers getting 100% to 150% salary rises to escape bonus tax. FTSE bosses averaging 55% pay rises.

At the same time people lower down the chain are just happy to still be in a job.

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Mortgages need to be tied to how much the tax man knows about.

Do you think black market cash in hand means you pay more in tax or less?

yes, but all nursery workers earn 50K...I know becuase they declare it on the mortgage forms...and I know because bankers are the hieght of proberty.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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