The 60% Trap
A plain-English guide to UK tax brackets, the tapered personal allowance, and what really happens between £100,000 and £125,140.
Understand exactly how much of each extra pound you keep at every income level from £50,000 to £160,000, and why the £100,000-£125,140 band carries the highest marginal rate in the UK system.
Not sure yet? Read the free version first.
What’s inside
- Why a pay rise can leave you barely better off, and why that's not a mistake
- Marginal vs effective tax rate: the one distinction that clears up most confusion
- How the personal allowance is withdrawn £1 for every £2 over £100,000
- Where the famous 60% comes from, shown step by step
- What crossing £125,140 and £150,000 actually changes
- National Insurance, bonuses, dividends and the child benefit charge on top
- What genuinely reduces taxable income: pensions, salary sacrifice, Gift Aid
- A checklist for reading your payslip and P60 with new eyes
Who it’s for
UK earners on six-figure salaries who aren't tax specialists: professionals, senior managers and directors at or approaching £100,000 who want to understand their own payslip without wading through HMRC manuals.
Important: This guide is general educational information, not personalised financial, tax or legal advice, and does not account for your individual circumstances. Rules, rates and thresholds change. Before acting, confirm the current position and consult a suitably qualified professional.