£100k Tax Trap
£100k tax trap calculator — the 60% band, and 69.5% in Scotland.
Tax on your next £1
69.5%
You have lost £7,500 of Personal Allowance, costing £3,375 in extra tax.
- Income Tax alone
- 67.5%
- On the next £1
- Pension to restore it
- £15,000
- Gross contribution
- Saved via salary sacrifice
- £10,425
- Each £1 in the pension costs 31p
Income Tax on each extra £1
The taper turns the 40% and 45% bands into 60% and 67.5% between £100,000 and £125,140.
Paying £15,000 into a pension restores the full allowance and saves about £10,425 in tax and NI.
Rates and rules from Income Tax rates: income over £100,000 (HM Revenue & Customs) and Tax on your private pension: pension tax relief (HM Revenue & Customs).
Related calculators
Keep planning.
Take-Home
Salary Take-Home Calculator
Net pay after tax, NI, pension, student loan, bonus and salary sacrifice. Tax codes and Scottish rates supported.
Salary Sacrifice
Salary Sacrifice Pension Calculator
Take-home cost vs pension gained, with the employer NI saving.
Pension
Pension Tax Relief Calculator
Basic/higher/additional rate relief, annual allowance, carry-forward note. Scottish rates supported.
Bonus Tax
Bonus Tax Calculator
Bonus take-home on Scottish or UK rates, with bonus sacrifice.
Expert help
Turn your estimate into the right tax decision.
A calculator can model the numbers. Our accountants can check the assumptions, explain the options and handle the return or payroll work for you.
Ask an accountantQuestions
Frequently asked
questions.
What is the 60% tax trap?
Between £100,000 and £125,140 of adjusted net income, you lose £1 of Personal Allowance for every £2 earned. That extra taxable income is taxed at 40%, so each £1 earned costs 60p in Income Tax — 67.5p in Scotland, where the band rate is 45%.
Why is the Scottish rate 69.5%?
Scotland's advanced rate of 45% applies from £75,000 to £125,140. With the allowance taper that becomes 67.5% Income Tax, and employee National Insurance at 2% takes it to 69.5% on salary.
How do I get my Personal Allowance back?
Reduce adjusted net income to £100,000. Personal pension contributions and Gift Aid are deducted when calculating it, and salary sacrifice reduces the salary itself. Salary sacrifice also saves NI.
Does the taper affect childcare support?
Yes. Tax-Free Childcare and the funded childcare hours in England are lost if either parent's adjusted net income exceeds £100,000, which can make the trap far more expensive for parents.
Get started
Take control of your
numbers today.
Free, no-obligation consultation. We agree the fee upfront — no surprises.
5.0 on Google · 8 reviews- Fixed fee agreed in writing before work starts — no surprise bills.
- Switching is handled for you, including the professional clearance letter.
- A named accountant who knows your business, not a call queue.