MPs to Be Caught in the £100,000 Tax Trap
4th March 2026
MPs have been urged to address the £100,000 tax trap before they fall victim to it themselves, with their pay expected to reach £110,000 a year by the end of this parliament.
Gee, I wonder whether this could be why so many rich people are bailing out?
Members of parliament earn a basic annual salary of £93,90, which is set to go up to £98,599 from April. The Independent Parliamentary Standards Authority, which sets their salaries, yesterday said it expects MPs’ basic salary to reach £110,000 by 2029.
For every £2 of income you earn (excluding pension contributions) over £100,000 you lose £1 of the £12,570 tax-free personal income allowance. Once you earn £125,140, you get no personal allowance at all.
It means that those earning between £100,000 and £125,140 face a marginal income tax rate — the amount they will pay on the next £1 they earn — of 60 per cent (62 per cent if you include national insurance).
Britain now is where the U.S. will be in future under the Democrats. Let us learn from their mistakes, shall we?