£100k tax trap to hit 2.3m taxpayers by 2029

£100k tax trap to hit 2.3m taxpayers by 2029

Frozen thresholds will drive a surge in higher-rate payers – and government receipts

Families caught as £100k tax squeeze deepens, says Rathbones

Nearly 2.3 million people are expected to earn more than £100,000 a year by 2028–29, pulling hundreds of thousands of families into the UK’s highest Nearly 2.3 million people are expected to earn more than £100,000 a year by 2028–29, pulling hundreds of thousands of families into the UK’s highest marginal tax band and risking the loss of childcare benefits worth thousands of pounds.

Hundreds of thousands more taxpayers to be pulled into £100k ‘tax trap’ by 2029

Frozen thresholds are pushing more workers into paying income tax at an effective 60% rate. We look at why, as well as how you can avoid being caught in the trap.