Higher earners net Treasury an extra £4.7bn Higher earners paid an extra £4.7bn to the Treasury last year due to the erosion of the personal allowance, which traps 1.35m workers in the 60% tax band. The personal allowance taper, introduced in 2010, affects those with an income over £100,000, resulting in an effective income tax rate of 60%. The hidden tax band has been frozen since its introduction, causing more individuals to be impacted. The tax take from the 60% charge has increased from £2.6bn in 2018-19 to £4.7bn in 2022-23. Over the past five years, higher earners have paid £18.6bn in taxes due to this trap. The personal allowance remains frozen at £12,570 until 2028. Making pension contributions can help individuals avoid the 60% tax bracket.