Overview
- HMRC estimates obtained by Rathbones indicate more than two million people will earn over £100,000 in 2026–27, roughly 6% of the UK’s 34 million workers and up 5.7% from this year’s 1.95 million.
- Freedom of Information data show 74,000 more taxpayers entered the £100,000–£125,140 band last year, lifting the cohort to 698,000 and nearly doubling it over five years.
- The personal allowance of £12,570 tapers away above £100,000, producing effective marginal tax rates that can approach 60% for incomes up to £125,140.
- Crossing £100,000 of earnings removes a household’s entitlement to free childcare hours regardless of the other partner’s income.
- The Office for Budget Responsibility projects the freeze will raise about £8bn a year by 2029 as the government targets roughly £11bn by the end of the Parliament, and advisers highlight pension salary sacrifice and gift-aid donations as mitigation options ahead of a £2,000 cap taking effect in April 2029.