In more detail
- The way out: paying into a pension, especially through salary sacrifice, lowers the income the trap is measured on.
- Example: on £110,000, paying £10,000 into a pension can cost you as little as £4,000 in take-home pay.
- It’s measured on adjusted net income, so bonuses count too.
Related questions
- Will my pension be taxed when I die?
- How much can I put in a cash ISA?
- How much tax do I pay on savings interest?
- Do landlords need Making Tax Digital?
See everything that’s changing in April 2027.
Sources
Last checked against GOV.UK: 9 October 2026