Ndubuisi Egwim breaks down the UK's 60% tax trap: earn over £100,000 and you lose your personal allowance at a rate that creates a 60% effective tax on that band. Many doctors didn't know about it. He published a free guide two years ago to help people navigate it.
I think the second big spike I could think about was how to avoid the 60% tax trap. First of all, many doctors didn't even know there was anything like that. And hearing it for the first time when we published it about two years ago and published a free guide that people could download and how to step by step how to avoid the 60% tax trap. You know about 60% tax trap? Basically, when your income exceeds 100k, your adjusted net income exceeds 100k, then you start losing your tax free allowance. For every two pounds you make, you lose one pound. So effectively I pay a 60% tax and you don't know. If you don't know, you don't know. You're just wondering why am I working so hard? I'm ending up with so little and HMRC is sending me these brown envelopes. So publishing that guide was also another sort of like really good spikes. Yeah, but, but like I say to people, there's not been one huge splash. It's always been sort of like compounding, incremental boring, show up every day.
