Tools · Flagship
High-Earner Tax Optimiser
Between £60k and £125k, the UK tax system hides some of its cruellest marginal rates, the 60% trap and the Child Benefit charge. Most calculators show one at a time. This one models them together and finds the single pension contribution that gets you out.
2026/27 tax year · England, Wales & Northern Ireland
The two traps, and why they stack
Between £100,000 and £125,140, your personal allowance is withdrawn, creating an effective 60% marginal rate (about 62% with NI). Separately, if you claim Child Benefit and earn over £60,000, the High-Income Child Benefit Charge claws it back, fully gone by £80,000. For a parent of two, that clawback alone adds roughly 11p of tax to every extra £1 in that band, on top of 40% tax, 2% NI and any student loan. It's how a "£70k salary" can face a marginal rate near 60 to 70%.
Because both are based on your adjusted net income, which pension contributions reduce, pound for pound, one well-sized contribution can escape whichever trap you're in. That's what this tool sizes.
Frequently asked questions
What income does this use?
It models employment salary (with salary-sacrifice pension, which reduces both income tax and NI). Other income, dividends, rental, savings interest, also counts toward adjusted net income for these thresholds, so if you have significant other income, treat the results as a floor.
Is the contribution I'm shown affordable / allowed?
The tool shows the tax-optimal target, not scheme limits. Very large contributions may exceed your pension annual allowance (£60,000, tapered if your income tops £260,000) or reduce pay below the minimum wage. Sense-check big numbers with your provider.
Salary sacrifice vs personal contribution?
This models salary sacrifice, which also saves the 2% NI. A personal (relief-at-source) contribution still lowers adjusted net income and restores allowance/Child Benefit, but doesn't save NI.
Get the free Compound Playbook
Every core tip from Compound distilled into one clear PDF. Enter your email and we will send it straight over.
Free PDF. By requesting it, you agree we can email you the guide plus occasional tips and offers. Unsubscribe anytime. See our Privacy Policy.