- The landscape — how UK tax actually hits a high earner
- The 60% trap (£100,000–£125,140)
- The £100k cliff — why it's worse with children
- The High Income Child Benefit Charge (£60,000–£80,000)
- The pension annual allowance — and the taper
- The master lever: pension salary sacrifice
- Timing a bonus (and sacrificing it)
- The electric-car trick
- A few more levers worth knowing
- Your action checklist
Here's the opening and the first trap, in full — so you can see exactly how the Playbook reads before you buy.
1The landscape
For 2026/27, the headline income tax bands (England, Wales & NI) look simple enough:
| Band | Income | Rate |
|---|---|---|
| Personal allowance | £0 – £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
But the bands in the table aren't the whole story. The real damage for high earners happens in two hidden zones the table doesn't show — and that's where we start.
2The 60% trap: £100,000 to £125,140
Once your income passes £100,000, you start losing your Personal Allowance — the £12,570 that's normally tax-free. You lose £1 of allowance for every £2 you earn above £100,000. By £125,140, it's gone entirely. Losing allowance means income that was tax-free becomes taxable at 40% — so every extra £1 here is taxed twice.
In the £100,000–£125,140 band, you are the highest-taxed person in the country. Someone on £500,000 pays 47% on their next pound; you pay 62% on yours. The good news is this band is also the easiest to escape, and section 6 shows exactly how — because it's your adjusted net income that counts, and there's a lever that changes it…
The £100k cliff for parents is worse still. Two pieces of childcare support switch off the moment either parent's adjusted net income crosses £100,000…
Read the rest — the cliff, the allowances, and every lever
The full 12-page Playbook covers the childcare cliff, the child benefit charge, the pension allowances, salary sacrifice, bonus timing, the EV trick, and a yearly action checklist.
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What is the 60% tax trap?
Between £100,000 and £125,140 you lose £1 of your Personal Allowance for every £2 you earn. That lost allowance becomes taxable at 40%, so each extra pound in this band is effectively taxed at around 60% — about 62% once National Insurance is added. The Playbook explains it with worked examples and how to escape it.
How do I avoid losing my Personal Allowance over £100,000?
Because it's your adjusted net income that counts, pension salary sacrifice can bring your income back under £100,000 and restore the full Personal Allowance. The Playbook walks through how salary sacrifice, bonus sacrifice and Gift Aid reduce adjusted net income.
Do I lose free childcare if I earn over £100,000?
Yes. Tax-Free Childcare and the funded childcare hours are withdrawn if either parent's adjusted net income exceeds £100,000. Combined with the 60% band, crossing £100,000 can create an effective marginal rate above 100% for parents. The Playbook covers the cliff and how to manage it.
Is this financial advice?
No. It's general information for the 2026/27 tax year to help you understand the rules and ask better questions — not personal financial or tax advice. Confirm current figures at gov.uk and take qualified, regulated advice before acting.
Can I get it for free?
Yes — every WealthR Playbook is included with WealthR Pro (£39.99/year) to read online in the app, always kept current, plus all the tools. Or buy this Playbook to own the PDF for £19.99.
Which tax year does it cover?
The 2026/27 UK tax year (England, Wales & NI), published July 2026. Figures are checked against gov.uk, and each year a fresh edition is published with a plain-English summary of what changed.