Between £100,000 and £125,140 of adjusted net income, the personal allowance is withdrawn at £1 for every £2 earned, creating an effective marginal tax rate of 60 percent. HMRC forecasts over 2 million people will fall into this band in 2026-27, the highest number on record. Many only discover the effect when a bonus or dividend pushes them over the threshold without warning.
We plan personal tax for high earners across Slough with income from dividends, savings, trusts, and multiple sources, coordinated with Self Assessment and, where property is involved, our SPV accounting service.
Within the £100,000 to £125,140 band, each extra £100 earned is reduced to £40 after tax and the lost allowance are both accounted for. A pay rise or bonus that looks like a straightforward gain can leave someone worse off in take-home terms than expected, and parents in this band can also lose access to tax-free childcare entirely. This is exactly why adjusted net income needs checking before a bonus, dividend, or property sale lands, not after the tax year has already closed. We review pension contributions and income timing with clients approaching this threshold well in advance.
This service is for individuals in or around Slough with income or assets more complex than a single salary.
We calculate your full adjusted net income across all sources before the tax year ends, not after.
We identify contributions that can bring your income back below key thresholds.
We plan the balance between salary, dividends, and other income to manage your overall tax position.
We prepare and file returns covering multiple income sources, trusts, and investments.
It is the effective marginal rate created when the personal allowance is withdrawn between £100,000 and £125,140 of adjusted net income, on top of the standard 40 percent higher rate.
Pension contributions and Gift Aid donations both reduce adjusted net income and can restore some or all of a tapered personal allowance.
Yes, crossing £100,000 of adjusted net income also removes eligibility for tax-free childcare, which can be a larger loss than the tax itself for some families.
Salary, bonuses, dividends, rental income, savings interest, and benefits in kind are all included, not just your base salary.
Our team is part of Direct Assist Accountants' ACCA-regulated practice in Slough
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