High Salaries in Britain: Who Has to Pay an Effective Tax Rate of 60%.

According to The Sun: In fact, for many of us, earning £100,000 a year seems like a sinful dream, as it is almost three times the average salary. However, according to recent data, high earners may face a tax trap.

It turns out that those who earn between £100,000 and £125,140 encounter the highest tax rates in the country. Your personal allowance for earning before taxation begins to decrease once you cross the £100,000 threshold and disappears if you earn more than £125,140 a year. This means that your tax rate can reach an astonishing 60%!

According to HM Revenue and Customs, this year over 723,000 workers will fall into this tax trap, which is double the number from last year. And this trend is only expected to rise as it is predicted that by 2028-2029, the number of affected individuals will increase to 850,000.

Parents will also not be left out, as those who earn more than £100,000 will lose their entitlement to free childcare hours. All of this places many families in a difficult financial situation, being in the zone of high tax rates.