Record 2m workers to fall into 100,000 tax trap - here's what it means

"From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging."

"An extra 112,000 people are forecast to earn above 100,000 from April as wages rise and tax thresholds are frozen, meaning a record two million workers face the six-figure tax trap. The top tax rate in the UK is, officially, 45 per cent, applying to those who earn in excess of 125,140. However, the reduction of certain allowances for those who earn over 100,000 means that those who earn between those amounts face an effective tax rate of 60 per cent."

The Independent funds on-the-ground reporting across issues including reproductive rights, climate change and Big Tech, producing investigations and documentaries while avoiding paywalls. Donations enable reporters to interview multiple sides and keep reporting accessible to a broad political audience. In the UK, frozen tax thresholds will move an extra 112,000 people above £100,000 next April, creating a record two million workers in a six-figure tax trap. The official top rate is 45% above £125,140, but the loss of the £12,570 personal allowance for incomes over £100,000 raises effective rates to about 60% and up to 62p per pound once national insurance is included; parents also lose entitlement to 30 hours of free childcare, costing roughly £9,000 annually.

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