Key policy changes and announcements affecting the £100k–£300k bracket. Sourced from GOV.UK with direct links to official guidance.
The Chancellor confirmed no changes to income tax thresholds or the personal allowance freeze for 2025/26. The £100k–£125,140 taper remains, meaning high earners continue to face a 60% effective marginal rate in this band.
From April 2025, all working parents of children aged 9 months to 4 years can access 30 hours of funded childcare per week during term time. Neither parent can have adjusted net income above £100,000.
Tax-Free Childcare continues with the same eligibility rules for 2025/26. Parents earning over £100,000 adjusted net income are not eligible. The government tops up childcare payments by 20%, up to £2,000 per child per year.
The High Income Child Benefit Charge (HICBC) starts when the higher earner's adjusted net income exceeds £60,000 and reaches 100% at £80,000. For 2025/26, the eldest child rate is £26.05/week.
The pension annual allowance remains at £60,000 for 2025/26. High earners with adjusted income above £260,000 face a tapered annual allowance, reducing to a minimum of £10,000.
The personal allowance (£12,570) and higher-rate threshold (£50,270) remain frozen until at least April 2028. With wages rising, more earners are being pushed into higher tax bands.
From April 2025, the National Living Wage (for ages 21+) increased to £12.21 per hour. This raises the annual NMW floor to approximately £23,810, a key constraint for salary sacrifice strategies.
Employer NIC increased to 15% from April 2025, with the secondary threshold dropping from £9,100 to £5,000. Salary sacrifice saves both employee and employer NIC, making schemes even more valuable.
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