Above £100,000, your personal allowance is reduced by £1 for every £2 earned — creating an effective marginal rate of 60% between £100,000 and £125,140.
Why this matters for your finances
Earning over £100,000 in the UK triggers the personal allowance taper and an effective 60% marginal tax rate. Here are the legal strategies to reduce your tax. Understanding how UK tax applies to your specific situation is essential for making informed financial decisions — from salary sacrifice to pension contributions to investment strategy.
Get personalised financial advice
Find a verified IFA near you on the Kaeltripton Financial Index.
Find an IFAGetting the most from your tax position
Many UK taxpayers overpay tax simply because they are not aware of legitimate reliefs, allowances, and strategies available to them. A qualified independent financial adviser or tax specialist can review your position and identify opportunities to reduce your tax liability legally. Find verified advisers on the Kaeltripton Financial Index.
HMRC resources
For definitive information on your tax position, use HMRC direct resources: Personal Tax Account at gov.uk/personal-tax-account, the tax code checker at gov.uk/check-income-tax, and the self-assessment portal at gov.uk/self-assessment-tax-returns. These are free, authoritative, and updated in real time.
This article is for informational purposes only and does not constitute financial advice. Tax figures are based on 2025/26 rates. Always verify with HMRC or a qualified adviser.
Part of our complete guide:
