The 60% marginal tax trap and how doctors can avoid it

Unveiling the Secret 60% Tax Trap: How UK Doctors Can Protect Their Income

In this video, Tommy and Dr. Ed Cantelo from Medic's Money discuss the hidden 60% effective income tax rate affecting UK earners, particularly doctors earning between £100,000 and £125,140. They delve into the concept of the marginal tax rate and provide seven actionable strategies to avoid this tax trap. Key topics include maximizing employment expense claims, making use of gift aid, contributing to private pensions, leveraging the NHS pension scheme, planning around child benefit, equalizing income with a partner, and considering non-cash benefits. Subscribe for more expert financial tips for healthcare professionals.

00:00 Introduction to the Secret 60% Tax Rate
01:11 Understanding the Marginal Tax Rate
02:35 Why the 60% Tax Rate Exists
04:36 Impact on Healthcare Professionals
06:14 Seven Strategies to Avoid the Tax Trap
06:32 Strategy 1: Maximizing Employment Expenses
07:49 Strategy 2: Utilizing Gift Aid
09:30 Strategy 3: Private Pension Contributions
11:49 Strategy 4: NHS Pension Scheme
12:32 Strategy 5: Planning Around Child Benefit
14:28 Strategy 6: Equalizing Income with a Partner
15:54 Strategy 7: Working Less
18:07 Conclusion and Summary

DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice and tax allowances and rates are subject to change.