Scotland has gone full blown nuts since I left. 70%+ tax rate for top earners. https://image.nostr.build/68d1c23b7c592b6f7c3c493595a107fea29d4bd9e668a5865c72fa1585727a05.jpg
Aye.. It's a tough tax bracket.
To clarify, this is called the "£100k tax trap"
The quoted 69.5% is only on the income between £100 and £125k. This is due to simultaneous reduction of personal tax allowance between those income figures.
Tax drops back down to 45% above £125k.
In England the tax trap is 60%.
A common way to avoid the tax trap is to put anything above 100k into your pension, tax free. Only when you earn above £130k it's worth suffering the tax trap.
To clarify, this is called the "£100k tax trap"
The quoted 69.5% is only on the income between £100 and £125k. This is due to simultaneous reduction of personal tax allowance between those income figures.
Tax drops back down to 45% above £125k.
In England the tax trap is 60%.
A common way to avoid the tax trap is to put anything above 100k into your pension, tax free. Only when you earn above £130k it's worth suffering the tax trap.
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