The £100,000 UK Tax Trap Explained

Every pound you earn between £100,000 and £125,140 is effectively taxed at 60%, because your Personal Allowance is withdrawn at a rate of £1 for every £2 of income above £100,000.

This creates one of the steepest effective tax rates in the UK system — higher than the 45% additional rate that applies above £125,140.

The guide explains how the trap works, how much it costs you, and how salary sacrifice can legally reduce your adjusted net income to escape it.