https://birminghamdaily.co.uk/tags/rathbones/Recent content in rathbones on Birmingham DailyHugo -- gohugo.ioen-usTue, 14 Apr 2026 06:21:37 +0000https://birminghamdaily.co.uk/hmrc-imposes-effective-71-tax-rate-on-thousands-of-uk-households/Tue, 14 Apr 2026 06:21:37 +0000https://birminghamdaily.co.uk/hmrc-imposes-effective-71-tax-rate-on-thousands-of-uk-households/HMRC is imposing an effective tax rate of up to 71% on some UK households, sparking concerns among personal finance experts about the growing financial strain on middle-income earners. The so-called £100,000 tax trap is leaving many individuals poorer despite earning higher salaries. According to The Telegraph’s James Baxter-Derrington, successive policy changes from both Labour and Conservative governments have created a situation where “it no longer pays to earn £100,000.” The tax trap arises because, at this income level, the tax-free personal allowance begins to taper away, disappearing entirely by £125,140.