What should you do if your income looks likely to go just over £100,000?
By Katharine, Founder, EMBR Tax
Last updated for the 2026/27 tax year · 6 April 2026
Why is just over £100,000 such a costly place to be?
Being just over £100,000 can be one of the most frustrating places to be from a tax planning point of view. The reason is not just the extra income. It is the effect that small amount over the line can have on thresholds and allowances.
This is usually the point to stop looking at salary alone and start checking adjusted net income properly.
What does a practical review checklist look like?
- Check your full expected adjusted net income for the tax year
- Review whether pension contributions could change the position
- Check whether Gift Aid donations are relevant
- Review any bonus or employer arrangement that may affect income
What is the bottom line?
This is often less about one dramatic change and more about a combination of small, sensible checks before the year closes.
Frequently asked questions
Why is just over £100,000 such a costly place to be?+
Being just over £100,000 is not just about the extra income. It is the effect that small amount over the line can have on thresholds and allowances – including the Personal Allowance taper and childcare support eligibility.
What should you check if your income looks like it may exceed £100,000?+
Check your full expected adjusted net income for the tax year, review whether pension contributions could change the position, check whether Gift Aid donations are relevant, and review any bonus or employer arrangement that may affect income.
Is this about one big change or several small ones?+
It is often less about one dramatic change and more about a combination of small, sensible checks before the year closes.
Related guides
- How does the Personal Allowance taper work above £100,000?
HMRC reduces your Personal Allowance by £1 for every £2 of adjusted net income over £100,000. Find out how the taper works and how to plan around it.
- How can pension contributions reduce your adjusted net income for HMRC purposes?
Pension contributions can reduce adjusted net income for HMRC. Learn how net pay, relief at source, and salary sacrifice each affect the calculation.
- Can Gift Aid donations reduce your adjusted net income near the £100,000 threshold?
Gift Aid can reduce adjusted net income using the grossed-up amount, which may affect your Personal Allowance and childcare eligibility near £100,000.