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@youngwillys: W rizzz😂😂#rizz #fyp #trending #viral
youngwillys
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Sunday 14 June 2026 19:06:08 GMT
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There’s a tax trap in the UK that catches a lot of high earners out. Once your income goes over £100k, you start losing your personal allowance. For every £2 above £100k, you lose £1 of your tax-free allowance. That creates an effective 60% tax rate between £100k and £125,140. A lot of people do not realise it is happening until they check their payslip or tax code. But this does not mean earning more is pointless. It means you need to structure it properly. The most common solution is pension contributions, because they reduce your taxable income and can bring you back below the threshold. If you’re employed, salary sacrifice can make this even more efficient because it may reduce National Insurance too. A few important points.... The 60% rate only applies to that slice of income, not your whole salary. Pension money is locked away until later life. And tax rules can change over time.
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