Picture this: you receive a salary increase and anticipate a boost in your take-home pay, only to find out that your financial situation has actually worsened. This isn’t just a nightmare — it’s the notorious 60% tax trap. This tax predicament surprises countless taxpayers in the UK, particularly those with high incomes, freelancers, and individuals with side gigs. However, with the right resources, such as a 60% tax trap calculator, you can determine precisely how much of your salary increase you will retain — and, more crucially, how to prevent losing a significant portion of it.
In this comprehensive guide, you will discover:
- An explanation of what the 60% tax trap is and how it operates.
- Instructions on utilizing the 60% tax trap calculator to assess if you are impacted.
- Tactics to steer clear of this financial pitfall.
- The relationship between this trap and tools like a side hustle tax calculator UK, a leaving the UK tax refund calculator, and residency assessments for expatriates.
