The Money Gains Podcast Money Moments 25 - The Hidden Tax Increase No One Is Talking About (Charlotte Baroukh)
Oct 17, 2025
Charlotte Baroukh, an accountant and personal finance expert, dives into crucial tax topics that everyone should know. She clears up misconceptions about payslips and explains the shock of the hidden 60% tax trap, revealing the real workings of progressive tax rates. Charlotte highlights financial education gaps and emphasizes understanding payslips and tax codes. She discusses how pension contributions and salary sacrifice can lower taxable income while also tackling fiscal drag's impact on taxpayers due to frozen thresholds.
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Progressive Tax Misconception
- The UK tax system is progressive, so only income above each threshold is taxed at the higher rate.
- Charlotte Baroukh urges people to pursue higher income because most of it remains taxed at lower rates.
Debunking The 60% Trap
- The so-called "60% tax trap" misrepresents what's happening when personal allowance is tapered over £100,000.
- Charlotte explains you still mainly pay 40% tax despite the allowance reduction, not a flat 60% rate.
Regularly Audit Your Payslip
- Check your payslip for gross pay, net pay, tax and National Insurance to understand actual take-home pay.
- Charlotte Baroukh advises you to monitor your tax code because undeclared side income can make payslips incorrect.