Ndubuisi Egwim explains the 60% tax trap that hits UK doctors earning between £100,000 and £125,000, where your personal allowance disappears and you lose benefits. He offers a 10-point checklist including pension strategies to help you avoid it.
This could save you several thousands of pounds, not just in your taxes and pensions have you fallen into the 60% tax trap as a doctor or healthcare professional without even knowing? It's crazy. I know you think the highest tax you can pay is 45% but here how it works. If your income exceeds 100,000 you start to lose your personal tax allowance and by the time you hit about 125,000 you've lost your entire tax allowance. This means you're paying an effective tax rate of 60%. That's not good. You lose a lot of other benefits with it. Now if you if it's something you've never thought about or you're worried you're not sure how to navigate it, you're in luck because I've written a very clear guide with a 10 point checklist that you can use to avoid the 60% tax trap. One of the biggest one is obviously paying more into your pension, but there are nine other steps you can take. Check the link in the description and download it for free. Let me know if it helps.
