The 60% Tax Trap

Once your taxable income passes £100,000, you start to lose the tax-free personal allowance. It drops by £1 for every £2 you earn above that point. By £125,140 it is gone. In this band, each extra pound is taxed at about 60p. That is why people call it the 60% tax trap.

It reaches some consultants, GPs and other senior NHS staff. Pension contributions and salary sacrifice lower your taxable pay, so they can move you back below the trap.

A full guide with worked examples is on the way. For now, you can model it on your own pay with the Casomo pay and pension calculator, or see the full deduction chain on the NHS doctor pay pages.