The £100,000 tax trap leaving workers turning down pay rises and bonuses

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The £100,000 tax trap leaving workers turning down pay rises and bonuses.

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A growing number of workers are turning down bonuses and pay rises to avoid breaching the £100,000 income threshold, which triggers a sharp increase in tax and the loss of key benefits."It was the last thing I wanted.

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I almost cried," Kate, a media professional and mother of two, told the Financial Times she described her reaction to receiving an unexpected year-end bonus.Rather than celebrating the additional income, she said the payment risked pushing her earnings above £100,000, a level that carries significant financial consequences.Crossing the threshold results in the gradual removal of the £12,750 tax-free personal allowance while also affecting eligibility for government childcare support.

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The extra money pushed me to the brink of tears," she said.Within the...

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