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£100,000 tax trap and salary sacrifice planner

Repo-linked (EBLR): your rate rises by the same 0.25% at the next reset date, unless your lender holds back some of it. Resets happen at least once every three months, so expect the change within about three months of 7 October.
MCLR-linked: your lender's own cost of funds drives the rate and it resets on its own date, often every six or twelve months. The effect arrives later and may be smaller. Our guide to [[blog:eblr-vs-mclr-home-loan|EBLR and MCLR]] explains the difference.
Fixed rate: nothing changes until the fixed period ends.

Put part of your pay into your pension before tax. See what it really costs you, and whether it gets you back under £100,000.

Estimate for 2026/27, England, Wales and Northern Ireland, tax code 1257L. The April 2029 cap follows the Autumn Budget 2025. Check your scheme and GOV.UK.

Common questions

Why is tax so high between £100,000 and £125,140?

You lose £1 of tax-free allowance for every £2 you earn above £100,000, so the effective rate in that band is about 60%.

What changes for salary sacrifice in 2029?

From 6 April 2029, National Insurance relief on salary sacrificed into a pension is capped at £2,000 a year.