Believe it or not, there are downsides to earning more than £100,000 a year – particularly if you have small children.

“It’s the ambition of many people to reach an income of £100,000, but it does come with an unexpected sting in the tail,” says Sean McCann, a chartered financial planner at NFU Mutual.

Those who make it into six figures face a 60% tax bill on some income. That is because the tax-free personal allowance starts to be taken away once you earn more than £100,000.

For every £2 of income over that, you lose £1 of the £12,570 annual tax-free personal allowance.

“This means that any earnings between £100,000 and £125,140 are effectively taxed at 60%,” says McCann.…