Aye.. It's a tough tax bracket.
To clarify, this is called the "£100k tax trap"
The quoted 69.5% is only on the income between £100 and £125k. This is due to simultaneous reduction of personal tax allowance between those income figures.
Tax drops back down to 45% above £125k.
In England the tax trap is 60%.
A common way to avoid the tax trap is to put anything above 100k into your pension, tax free. Only when you earn above £130k it's worth suffering the tax trap.
Not sure I would trust a pension in the uk lol 😂
But man it’s crazy how people are not up in arms about this.
So true. They get you either way. "Tax efficiency" is just an illusion for middle class and below.
Also funny how tax brackets aren't moving up with inflation so more and more people are pushed into higher tax brackets.
Fun!
And wages are barely going up. It’s why I left several months ago to find better job opportunities.
£100k isn't even that much anymore if you're raising a family with a wife that take care of the home. You'll be reduced to a mid salary earner but with a demanding and stressful job. .... Might as well just go on the dole and not work... I'm semi joking
After you pay taxes it’s not very much at all. But you still in the top 5% of earners in Scotland.
The only solution is to leave, there isn’t any job opportunities for talented young people either.
