93% top rate of tax

Posted on 16 Jun 2014
Share Blog Post

Those earning more than £125,000 and stillpaying off their student loan face an effective top tax rate of more than 90%,according to analysis. While the top rate of taxis technically 45%, some people are seeing marginal rates of 60%, with thisrising to as high as 93% as a result of successive governments tweaking the taxsystem and clawing back benefits. The personal allowance is tapered away at arate of £1 for every £2 of income for those earning between £100,000 and£125,140, meaning workers face an effective 60% tax rate on those earnings.Many graduates in high-paying sectors often earn high salaries while stillpaying off their student loans. The analysis shows that someone earning£124,150 who graduated in the last 10 years and is still paying off their loan- and who received a £1,000 pay rise - would pay an effective tax rate on theiradditional earnings of 93%, once National Insurance is added.

View more blog posts

NIC hammer blow
Posted on 23 Jun 2025
NIC hammer blow
read more
Youth mobility scheme
Posted on 21 May 2025
Youth mobility scheme
read more
Businesses unaware of MTD
Posted on 14 May 2025
Businesses unaware of MTD
read more
Two tier tax system introduced
Posted on 07 May 2025
Two tier tax system introduced
read more
Back To Top
01604 660661