Number of people caught in UK’s £100,000 tax trap doubles in four years

The number of people in the UK who find themselves in a £100,000 tax trap has doubled over the past four years, as higher earners struggle to navigate the complex tax system. Many are choosing to reduce their work hours, turn down promotions, or over-contribute to pensions to stay just below the threshold that triggers higher tax rates. This trend highlights the growing pressure on individuals to manage their income carefully to avoid increased taxation, raising questions about the fairness and simplicity of the tax system. For those affected, it underscores the need for clearer guidance on how to balance earning potential and tax obligations.