5min chapter

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Ep 245: Avoid this NHS back pay tax trap

Medics Money podcast

CHAPTER

Understanding Tax Implications of Back Pay and Income Adjustments

This chapter explores the tax effects of receiving back pay, particularly how it influences adjusted net income and personal tax allowances. It highlights the risk of entering a 60% tax trap if income exceeds £100,000, as well as the impact on tax-free childcare benefits.

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