Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Earning £100K+? Here’s How HMRC Takes 60% of Your Pay

22 Sept 2025 · 1 min

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1:14

Ndubuisi 'Andy' Egwim explains the UK "60% tax trap": once an individual’s adjusted net income exceeds £100,000 they begin to lose their tax-free personal allowance at a rate of £1 lost for every £2 earned above £100,000. Egwim cites the NHS (alle?) calculator and a worked threshold (reference to £125,140) showing that by the time the allowance is fully withdrawn the effective marginal rate can reach about 60%, and raises the question of how affected workers (e.g., doctors) can respond.

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The issue now is what I mentioned earlier on called the 60 tax trap. So everyone in the UK has an allowance, an amount of money you can earn tax free before you start being taxed. Now when Coyote crosses 125,140 for every 2 pounds is earning above that amount, every 2 pounds above, every 2 pounds above 100k net income, he starts losing 1 pound from that tax free amount. Okay, but the NHS ally calculator, it will show you clearly that for Coyote to show you how his tax allowance is disappearing, for every extra pound above 100k, every extra 2 pounds he loses 1k. So by the time he hits 100, 125, 140, he's lost the entire tax tax free amount and therefore he's paying an effective tax rate of 60%. So what can Coyote do about it? Don't feel like paying 60 tax rate. I'm working too hard. That's if he knows because for many doctors, healthcare professionals, they don't find out.