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Number of Britons caught in 60p-in-the-pound tax trap has nearly DOUBLED in four years, HMRC figures reveal

From the Newshound archive · first published 9 October 2026 · last updated 10 October 2026.

Number of Britons caught in 60p-in-the-pound tax trap has nearly DOUBLED in four years, HMRC figures reveal

More than 727,000 people are now caught in Britain's £100,000 income tax trap — where every additional pound earned costs workers 60p — following an 85 per cent rise over four years. The personal allowance has been frozen at £12,570 since 2021-22, pulling hundreds of thousands of higher earners into the bracket as salaries have climbed. Some workers are forgoing promotions or reducing their hours to avoid the penalty.

The trap applies to anyone earning between £100,000 and £125,140, where the tax-free personal allowance is progressively wiped out at a rate of £1 for every £2 earned above the threshold.

MoreGB NewsHMRC warning as number of Britons caught in £100,000 tax trap nearly doubles in four yearsFinancial TimesNumber of people caught in UK’s £100,000 tax trap doubles in four yearsTraders UnionUK tax trap hits 727,000 as frozen thresholds widen 60% marginal rate - Traders Union
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