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The £100k Tax Trap Calculator

See your real marginal tax rate between £100,000 and £125,140, where losing your personal allowance means 60%+ tax, and how much pension brings you back under.

Questions

Why is the rate 60% above £100,000?
For every £2 of income over £100,000 you lose £1 of personal allowance. That extra £1 is taxed at 40%, so each £1 earned costs 40p + 20p = 60p in tax, plus 2% NI.

How do I avoid it?
Personal or salary-sacrifice pension contributions reduce your adjusted net income, which can restore your allowance. Gift Aid donations work too.

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