Can you provide an example for others? I know I often hear this complaint here in Canada about entering a new tax bracket, but the reality is that only the money earned above the bracket's lower bound is taxed at that higher rate (if the bracket is $10k and you make $10,001, only that $1 is taxed at that higher brackets rate), and so I'm wondering what the UK is doing differently.
Edit: Ah, there's a baseline personal deduction (12.5k) that disappears between 100-125k, meaning, for that narrow band, every dollar earned in that range has a higher effective tax rate due to that deduction slowly disappearing. It's still progressive, so you don't suddenly start paying 60% tax on everything.
Edit: Ah, there's a baseline personal deduction (12.5k) that disappears between 100-125k, meaning, for that narrow band, every dollar earned in that range has a higher effective tax rate due to that deduction slowly disappearing. It's still progressive, so you don't suddenly start paying 60% tax on everything.
https://www.brewin.co.uk/insights/earn-over-100k-beware-the-...