PDF Guide
How To Navigate the 60% Tax Trap
It’s often thought that the highest UK tax rate is 45% – but that’s not the case. In the UK, the “60% tax trap” refers to a situation where an individual’s effective tax rate exceeds 60% due to the way certain benefits or allowances are withdrawn as income rises. This can happen when someone earns enough income to lose entitlement to certain means-tested benefits or tax credits while also paying higher rates of income tax.