Except I cannot put extra into pension, because I do not know how much I have put into my pension until the October after the end of the tax year, when NHS Business Authority may or may not write to me telling me I have breached my annual allowance.
So my taxable salary is about 86k (after pension contributions) and I do overtime up to 100k, but nothing more. Because if I do more I am paying 60% tax on it. It is a total disincentive to work. The best thing to do is have a limtied company and keep the money in there, invested in a company stocks and shares account and take it out when I retire or have a career break and live off it, or something. But once you smash through 125k, you are back to 40% tax again, happy days. The worst thing you can do it sit in that 100-125 zone.
Then, at 200k (way above my earnings) you also lose annual allowance for pension. It used to be that that started at 110k, so not only were you losing personal allowance, you were also losing annual allowance. At 121k, the marginal rate of tax for non-pensionable overtime for many colleagues was over 100%. They were paying to come to work.
each of these is an example of government saying ‘TAX THE RICH AT 100k’ but so many little things add up so as to stop people doing discretionary work. It’s not like the NSH is flush with senior docs.
I don’t have kids but there are similar cliff edges at 50k and 100k for childcare.
