{"id":6560,"date":"2026-06-12T12:01:51","date_gmt":"2026-06-12T11:01:51","guid":{"rendered":"https:\/\/well-tax.com\/?p=6560"},"modified":"2026-06-12T12:01:52","modified_gmt":"2026-06-12T11:01:52","slug":"la-trappola-fiscale-dei-100-000-sterline-nel-regno-unito-perche-un-reddito-piu-elevato-puo-comportare-un-carico-fiscale-maggiore","status":"publish","type":"post","link":"https:\/\/well-tax.com\/it\/100k-tax-trap-uk-why-more-income-can-cost-more-tax\/","title":{"rendered":"La trappola fiscale dei 100.000 sterline nel Regno Unito: perch\u00e9 un reddito pi\u00f9 elevato pu\u00f2 comportare un carico fiscale maggiore"},"content":{"rendered":"\n
\"100k<\/figure>\n\n\n\n

The 100k tax trap can affect UK taxpayers when their adjusted net income goes above \u00a3100,000. At that point, the tax-free Personal Allowance starts to fall. For every \u00a32 of adjusted net income above \u00a3100,000, the Personal Allowance is reduced by \u00a31. Once income reaches \u00a3125,140, the allowance is lost completely. This is why earning more can sometimes leave people with much less than they expected after tax, especially where bonuses, dividends, rental income, or benefits in kind are involved.<\/p>\n\n\n\n

What is the 100k tax trap?<\/h2>\n\n\n\n

The 100k tax trap is not a separate tax. It is the effect of losing the Personal Allowance when adjusted net income goes above \u00a3100,000.<\/p>\n\n\n\n

Most UK taxpayers receive a Personal Allowance. This is the amount of income they can earn before paying Income Tax. For the 2026\/27 tax year, the standard Personal Allowance is \u00a312,570. However, this allowance is reduced when adjusted net income goes above \u00a3100,000. Official HMRC guidance on GOV.UK confirms that the Personal Allowance is reduced<\/a> by \u00a31 for every \u00a32 of adjusted net income above \u00a3100,000, until it is lost completely at \u00a3125,140.<\/p>\n\n\n\n

This creates a problem for people earning between \u00a3100,000 and \u00a3125,140. They are not only paying tax on their extra income. They are also losing part of their tax-free allowance. That means more of their income becomes taxable.<\/p>\n\n\n\n

In simple terms, the 100k tax trap makes this income band expensive from a tax point of view, so the real cost of extra income should be checked before decisions are made.<\/p>\n\n\n\n

Why the 100k tax trap can make extra income costly<\/h2>\n\n\n\n

Many people assume that earning more always means taking home much more. In most cases, that is true. But the 100k tax trap changes the picture because the extra income can also reduce the Personal Allowance.<\/p>\n\n\n\n

For example, a salary rise, bonus, dividend, or rental profit may push someone just over \u00a3100,000. On paper, that looks like good news. In practice, the extra income may also cause part of the tax-free allowance to disappear.<\/p>\n\n\n\n

This is why some taxpayers are surprised when they see their final tax bill. The extra income has not only been taxed in the normal way. It has also caused more income to become taxable.<\/p>\n\n\n\n

For many taxpayers outside Scotland, this is often described as an effective 60% marginal Income Tax rate on income between \u00a3100,000 and \u00a3125,140, before National Insurance or other factors are considered. This comes from the combined effect of 40% higher rate tax and the withdrawal of the Personal Allowance. The position may differ for Scottish taxpayers because Scottish Income Tax rates and bands apply to non-savings and non-dividend income.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Adjusted net income is the number to watch<\/h2>\n\n\n\n

A common mistake is to look only at salary. The 100k tax trap is based on adjusted net income, not just basic pay.<\/p>\n\n\n\n

Adjusted net income starts with total taxable income. It can include salary, bonuses, dividends, rental profits, savings interest, benefits in kind, and other taxable income. Certain deductions and reliefs may then be taken into account, including some pension contributions and Gift Aid donations. HMRC provides guidance on adjusted net income<\/a>, including how Gift Aid and certain pension contributions are treated in the calculation.<\/p>\n\n\n\n

This means someone with a salary below \u00a3100,000 may still fall into the trap if they receive other income. For example, a person earning \u00a392,000 could cross the threshold after receiving:<\/p>\n\n\n\n