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Estimate how the Personal Allowance taper may affect your effective rate and the impact of eligible pension or Gift Aid contributions in 2026/27.
Editable sample: £110,000 salary + £5,500 gross salary sacrifice (2026/27). Rate assumes ordinary employment and standard employee NI; HICBC is separate. Amount-bearing links expose inputs.
This is an illustrative average rate for income within the Personal Allowance taper band, not the rate on every pound of your total income. Any estimated Child Benefit charge change is shown separately and is not added to this figure.
Your ANI is within the Personal Allowance taper range
At estimated ANI £104,500, the model estimates £2,250 of standard Personal Allowance withdrawn. The illustrative effective rate across income in this band is 62.0% under the selected region and employee assumptions; it is not a universal rate.
An additional gross qualifying contribution of about £4,500 would bring modelled ANI to the selected target. Check annual allowance, carry-forward, scheme eligibility and how your contribution is treated before acting; this is not a personalised recommendation.
Illustrative rUK employment-income scenario with standard employee NI assumptions; HICBC excluded.
| Adjusted net income | Personal Allowance remaining | Estimated tax + employee NI in taper band |
|---|---|---|
| £100,500.00 | £12,320.00 | £310.00 |
| £105,000.00 | £10,070.00 | £3,100.00 |
| £110,000.00 | £7,570.00 | £6,200.00 |
| £115,000.00 | £5,070.00 | £9,300.00 |
| £120,000.00 | £2,570.00 | £12,400.00 |
| £125,000.00 | £70.00 | £15,500.00 |
Estimated tax and employee NI attributed to income in the Personal Allowance taper band; HICBC changes are separate.
| Scenario | Total gross pension | ANI | Allowance lost | Estimated tax + NI | HICBC reduction vs no pension |
|---|---|---|---|---|---|
| No pension | £0.00 | £110,000.00 | £5,000.00 | £6,200.00 | £0.00 |
| Current contribution | £5,500.00 | £104,500.00 | £2,250.00 | £2,790.00 | £0.00 |
| Contribution to selected ANI target | £10,000.00 | £100,000.00 | £0.00 | £0.00 | £0.00 |
Annual illustration using 3% salary growth; pension, benefits, dividends and Gift Aid stay fixed in cash terms.
| Year | Employment income | Adjusted net income | Personal Allowance remaining | In taper range |
|---|---|---|---|---|
| Year 1 | £110,000.00 | £104,500.00 | £10,320.00 | Yes |
| Year 2 | £113,300.00 | £107,800.00 | £8,670.00 | Yes |
| Year 3 | £116,699.00 | £111,199.00 | £6,971.00 | Yes |
| Year 4 | £120,200.00 | £114,700.00 | £5,221.00 | Yes |
| Year 5 | £123,806.00 | £118,306.00 | £3,418.00 | Yes |
This calculator estimates taper exposure using published UK thresholds for the 2026/27 tax year. It is an annual planning estimate, not a payroll result; income mix, tax code, pay frequency, NI category and pension method can change actual liabilities.
The 60% tax trap (Personal Allowance taper) applies when your Adjusted Net Income (ANI) exceeds £100,000. For every £2 of ANI over £100,000, you lose £1 of your Personal Allowance (£12,570 for 2026/27). For a typical rUK employee in the 40% band, the Personal Allowance taper adds an effective 20 percentage points; with 2% employee NI, the illustrative total is about 62%. It is not a universal rate.
In Scotland, non-savings income in this ANI range is generally taxed at 45%; the allowance taper adds 22.5 percentage points and employee NI may add up to 2% for a standard employee above the upper earnings limit (about 69.5% in that simplified case). Dividend income, pension method, NI category and other circumstances change the estimate.Pension contributions or Gift Aidmay reduce ANI, but the suitable route depends on the pension method, annual allowance, cash flow and the taxpayer's circumstances.
This is an educational estimate. Confirm the result against HMRC guidance, payroll records and pension-provider rules.
Copy a short or detailed summary. Links are available with or without amounts.
These official HMRC and GOV.UK resources support the Personal Allowance taper, regional Income Tax, employee NI, adjusted net income, pension, Gift Aid and Child Benefit context. The calculator is a simplified planning estimate.