Earn over £100k? You might be paying 60% tax on part of it.
Between £100,000 and £125,140, losing your Personal Allowance makes that slice an effective 60% — a pension contribution is the usual way people pull it back.
£9,000
of your £12,570 Personal Allowance tapered away at £118,000 — the slice over £100k is taxed around 60%. Illustrative.
Enter your salary to see the effect:
This is an illustration, not a quote. It's a rough picture based only on what you've entered — a figure to picture, not a promise. The real amount depends on your circumstances and things we can't see, so it's always worth checking your own position before you count on it.
See it for your own money.
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- Above £100,000 the Personal Allowance tapers away — £1 for every £2 — which creates the 60% effective band.
- A pension contribution reduces the income that's counted, and gets relief at your marginal rate.
- Illustrative — for your own situation, speak to an adviser or accountant.
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