How To Avoid the 60% Tax Trap!

Number 5 falling into the 60% tax trap I've been speaking about this for over a year now, but if your adjusted net income crosses £100,000, you start losing your tax free allowance of £12,570. That means that for every extra £2 you earn above that 100,000, you lose £1 from your tax free allowance and you'll be paying an effective tax rate of 60% by the time you hit 125140. That's the magic number. You've lost all your tax free allowance and paying an effective rate of 60% again. A few things you can do is to consider reducing your taxable income by making additional pension contributions. I've done a free guide this how to avoid the 60% tax drop. If you want a deep dive, join my tax hack X Ray Challenge for Doctors and Healthcare Professionals. It will be a two hour session where we use a fine tooth comb to go over all the tax areas and more and Compare checklists before April 1st.