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At around 100k the marginal rate is 60%+ (i.e. every extra £1 you earn you keep 40p)
Other way round, you keep 60p (50,721 to 150,000 is taxed at 40%).
jellybaby-
No, that's wrong because of taper of nil rate band above 100k.
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Nope. Your tax free allowance is tapered off at the same time. If you get a £1k payrise from £100k to £101k you first get taxed at 40% on the £1k (leaving £600) and then you lose £500 off your tax-free income. So instead of £51k being taxed at 40% it's £51.5k taxed at 40%. Your 1% payrise is now 0.4% before NI
andyfallsoff
frankenbike
In terms of disposable income + cost of living, yes, but in terms of tax? At around 100k the marginal rate is 60%+ (i.e. every extra £1 you earn you keep 40p). Not saying those people deserve sympathy as that is clearly still a good income, but i can’t see much of a reason for saying that below 40k are worse taxed. VAT is the only thing i guess, on the assumption lower paid spend more of income on expenditure which might have VAT on it?