The £100k Personal Allowance Trap

Clients who hit £100k often think they’ve optimised their tax. But when you factor in student loan repayments, child benefit clawback, and P11D benefits—they may actually push into £125k+ and lose more than they gain.

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1. Enter all income sources including salary, dividends, property, and benefits-in-kind.
2. Add any child benefit received and student loan details.
3. Use the dashboard to view the personal allowance taper and clawbacks.
4. Highlight impact on effective tax rate and payments on account.
5. Offer scenarios that reduce taxable income below critical thresholds.

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• Any time income approaches £100k
• Before making final bonus or dividend decisions
• To check for overlooked deductions or allowances