Originally Posted by
AIMINGHIGH123
Monthly pay increase £945
Monthly pay increase £612 Effective tax is 60%
After £120k monthly take home goes up a bit more.
I was wrong, guess your government does double dip. Finally found it on the UK.GOV website. Losing some, or all the personal allowance also brings down the amount where the higher rate of 40% starts by that amount. And it does make the
marginal rate 60% between £100.000 and £125.000. Crazy.
Effective rate for £120.000 is £40.460 (total tax) / £120.000 (total income) = 34%.