YouTube video by Ndubuisi 'Andy' Egwim explaining UK income tax implications for higher earners (doctors). It describes the loss of the personal tax-free allowance when adjusted net income exceeds £100,000—£1 of allowance lost for every £2 over the threshold until the full £12,570 is gone—resulting in an effective marginal tax rate near 60% on income in the affected band. The presenter also mentions an online NHS Salary Calculator built to model these effects.
Questions this video answers
£12,570
£100,000
£1 of allowance lost for every £2 of income above £100,000
Everyone, especially in uk, Northern Ireland, England and Wales, has a personal tax free allowance of 12,570. Now, what happens is that once you cross 100k, for every two pounds above 100k, you lose one pound out of the 60 out of, out of your, your 12, 570. So for every extra two pounds you make above 100k, you just keep losing. Just keep listen. And for those of you who want to play around with the figures, you can go to NHS Salary calculator dot com. That's just a calculator I built. We built it online to answer the questions because we had a lot of people asking, how do I know if I've hit the 60 tax job? How do I know at what point I can actually put more in my pension? How do I know how much more I can earn before I get there? So we build our calculator. Once you hit that number automatically, it will flash up and tell you you're beginning to lose your tax allowance. All right? Now, if you end above 100k, for every 2 pounds above 100k, you lose 1 pound out of your tax allowance. Once you hit that amount, then by that point you've lost the entire tax free allowance of 12, 5, 70. And at that point, what's going to happen? You just start paying 60% on anything above that amount. So your marginal tax rate is just unbelievable. A lot of doctors don't know about it, you've never heard about it, just wonder why you're earning so much. By the end of the day, there's not a lot going home.
