Photo: KoolShooters

Is earning 100k a year good UK?

charteredaccountantschichester.com - Is £100k a good salary in the UK? - Evans Weir Chartered Accountants

How many hours do freelancers work?

Freelancers also work long hours – 40+ hour working week. For freelancers, time is money. The cliché of lounging around in your pajamas while only...

Last updated Aug 11, 2020

How much can a beginner earn in digital marketing?

For a Content Marketing Fresher or less than 3 years experience the average salary range is Rupees 2,00,000 to 4,00,000 in India. Sep 1, 2022

Last updated Sep 27, 2021

Promotion

The simple answer to this question is yes, a salary of 100k + does still put you in a relatively select group at the top of the UK earners list. Whilst those at the very top of that heap are touching seven-figure salaries, the proportion of those on more than £100k continues to grow. But with a cost of living crisis, slow growth and record amounts of government borrowing needing to be paid back, if you’re earning £100k or more in the UK, you may find yourself in the spotlight if there are any changes to the income tax bands.

‘Higher earners should pay more tax’

This is the mantra of many an election manifesto in recent times and unsurprisingly it is likely to form the backbone of the next general election too. Those earning the most are likely to be targeted to make a greater contribution to the national effort and the £100k mark seems to be the natural point of focus. At present, UK income tax rates don’t make a distinction at £100k, with the higher rate tax covering everything from £50,001 to £150k. Other than the Conservative party, most other mainstream political parties believe this income bracket is too broad, especially given that the tax free and basic rate tax segments are much smaller. The general feeling is that the additional rate of 45% should kick in at £100,000 and a new upper rate of 50% should apply beyond £150k. Whilst this would see more people paying an increased amount of tax, it is not clear what would happen to the hidden rate of tax that already applies beyond £100k as a result of a reduction in the personal allowance. If you earn £100k or more or are required to submit a self-assessment tax return for any other reason, please contact our team today to find out how we can help you hold on to more of your earnings through careful personal tax planning.

‘Hidden’ tax rates over £100k

If you’re earning £100k, or are due to break that threshold, you may already be aware of the intricacies of the tax rate set up that mean you end up paying a hidden rate of tax. Whilst higher rate tax applies from £50,001 to £150k, many are unaware that their personal allowance reduces gradually after £100,001 such that it is removed by the time you earn £125k – the allowance reducing £1 for every £2 earned. The impact of this is you end up ‘retrospectively’ paying basic rate (20%) tax on income that you had previously received free of tax. Some suggest that this actually creates a 60% tax rate (40% higher rate + 20% on personal allowance) which arguably sounds better for the UK treasury than simply reducing the point at which additional rate tax (45%) becomes payable. So, it will be interesting to see, as we approach the election and potentially even during this parliament, whether the thresholds are up for discussion and how the tapered reduction in personal allowance is approached. It’s certainly a complex calculation and as ever there will be some that benefit and some that end up worse off. Undoubtedly there’ll also be those that work out the best way of earning the most whilst paying the least in taxation.

How do I get my 5$ Free PayPal?

How to claim your $5 Step 1Check your account. This reward can only be claimed by using the email address connected to the social media account...

Last updated Jan 19, 2020

How many OnlyFans users are female?

MTP consisted of 344 (79.4%) OnlyFans users (217 males [63%] and 127 females [37%]) and 89 (20.6%) OnlyFans nonusers (62 males [69.7%] and 27...

Last updated Aug 18, 2020

Promotion

What is a good online job?

In summary, here are the best online jobs you can do to earn money in 2022: Social media management. Online tuition. Bookkeeping. Personal...

Last updated Apr 23, 2022

Does Mark Zuckerberg use social media?

Facebook creator Mark Zuckerberg says that he does not have time to use social media platforms. Aug 25, 2022

Last updated Mar 11, 2021

Promotion

What happens if you quit social media?

You will feel less stressed Decreased levels of anxiety and depression are but one mental health benefit of quitting social media. In fact, the...

Last updated Sep 10, 2019

Promotion

Who gets paid more HR or marketing?

Although Marketing generally pays more, both fields have great room for upward mobility. Human Resources often calls itself "the poor sibling" of...

Last updated Dec 13, 2018