£100k–£125k band

Managing the personal allowance taper alongside the NI cap

Between £100,000 and £125,140 every £2 earned removes £1 of personal allowance, creating a 60% marginal rate before NI. Pension salary sacrifice still reduces adjusted net income here, even with the £2,000 NI cap.

Why the taper matters

Pension sacrifice can reclaim allowance and soften the taper. That can also lower the high income child benefit charge if it applies to you.

  • Sacrifice reduces taxable income first; the NI cap only affects NI relief.
  • Switch rUK/Scotland in the calculator to reflect the correct banding.
  • Even with NI relief capped, reclaiming personal allowance can outweigh the NI clawback.

How to model your position

Use a higher sacrifice input to see how much allowance you reclaim. The calculator reruns income tax, NI, student loans, and the child benefit charge with and without the cap.

  • Start with a 10–20% sacrifice and adjust from there.
  • Add employer pass-through if your company shares NI savings.
  • Compare results with fixed versus percentage sacrifice.