The Importance of the Marginal Rate of Taxation

The marginal tax rate, that's the percentage of tax paid on earnings for the next pound earned. In 2008, because of the financial crisis at the time, the Labour government removed the tax free personal allowance for people they deemed to be higher owners. If you earn over 100,000 pounds, your income begins to claw back the tax-free personal allowance. For every two extra pounds above this threshold, or more than 125,140 pounds, in the current year, which is 2022, you lose the entire benefit of the personal allowance. So what does that mean? Why do I need to pay 40% and not just 20%. And how can I make sure my taxes don't go up