Half a million Britons caught in 60% tax trap

Mark Incledon, managing director of Bowmore Financial Planning, urged the government to address the tax trap, which has left higher earners at a “serious disadvantage”.

He said: “Achieving a six-figure salary has long been a major goal for many people. We all understand that this means paying more tax.

“Unfortunately, if HMRC charges 60p for every pound you earn over £100,000, the appeal of achieving this is much more limited.

“It only discourages people from working harder, being more productive and ultimately generating economic growth.”

A Treasury spokesperson said: “We are committed to keeping taxes for working people as low as possible while maintaining fiscal responsibility, which is why we have committed not to increase income tax, national insurance or VAT.

“We are a wealth creation government and we believe the best way to responsibly improve living standards is to drive economic growth by ensuring stability, boosting investment and reforming our planning and skills systems to unlock Britain’s potential.”