In the UK, earning over £150K means you’ll face a 45% tax rate on your salary.
But, did you know there’s a sneaky 60% tax trap for those earning between £100K and £125K? That’s right, the £25K in that range is taxed at a whopping 60%.
Every £2 you earn over £100K means your personal allowance decreases by £1, making your tax rate soar.
So, smart earners in this bracket boost their pension contributions to lower their taxable salary and keep more of their hard-earned cash.
Don’t get caught in the 60% tax trap – plan your finances wisely!