The invisible cliff · UK study
The £25,000 stretch of salary where a British worker keeps just 38p of every extra pound.
Between £100,000 and £125,140, an invisible tax rate of 62% quietly switches on. We charted the exact stretch where earning more barely pays.
Between £100,000 and £125,140, the tax-free personal allowance is withdrawn by £1 for every £2 earned. Stacked on 40% higher-rate tax and 2% National Insurance, this creates an effective marginal rate of about 62% — a stretch of salary where earning more barely moves your take-home. At the worst point, you keep just £380 of your next £1,000.
What you keep of each extra £1,000, £95k–£130k
| Salary | Take-home | Kept from next £1,000 |
|---|---|---|
| £95,000 | £65,657 | £580 |
| £97,000 | £66,817 | £580 |
| £99,000 | £67,977 | £580 |
| £101,000 | £68,937 | £380 |
| £103,000 | £69,697 | £380 |
| £105,000 | £70,457 | £380 |
| £107,000 | £71,217 | £380 |
| £109,000 | £71,977 | £380 |
| £111,000 | £72,737 | £380 |
| £113,000 | £73,497 | £380 |
| £115,000 | £74,257 | £380 |
| £117,000 | £75,017 | £380 |
| £119,000 | £75,777 | £380 |
| £121,000 | £76,537 | £380 |
| £123,000 | £77,297 | £380 |
| £125,000 | £78,057 | £509 |
| £127,000 | £79,096 | £530 |
| £129,000 | £80,156 | £530 |
Outside the trap, a higher-rate taxpayer keeps about £580 of each extra £1,000. Inside it, barely £380. See exactly what your next £1 is worth.
All figures computed from published HMRC tax rules for the 2026/27 tax year, using the same engine behind our calculators, and verified 12 August 2026. Reproducible and free to cite — contact us for the underlying data.