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UK's Tax Trap: 2 Million Face £100,000 Threshold by 2027

1/13/2026

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Summary

Story summary

Her Majesty's Revenue and Customs (HMRC) forecasts two million people in the United Kingdom will enter the £100,000 tax trap in 2026-27.
An additional 112,000 individuals are expected to exceed threshold, losing 62p per pound earned between £100,000 and £125,140 due to National Insurance and income tax.
The tapering of the tax-free personal allowance and withdrawal of childcare support for families earning above £100,000 will affect 2.3 million by 2028-29.

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Story summary

Her Majesty's Revenue and Customs (HMRC) forecasts two million people in the United Kingdom will enter the £100,000 tax trap in 2026-27.
An additional 112,000 individuals are expected to exceed threshold, losing 62p per pound earned between £100,000 and £125,140 due to National Insurance and income tax.
The tapering of the tax-free personal allowance and withdrawal of childcare support for families earning above £100,000 will affect 2.3 million by 2028-29.