Higher rate Articles

‘Stealth tax’ will pull more than one million into ‘higher rate’ tax band
marketing | 25 January 2023
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Inflation and frozen tax bands mean that more than one million people will pay the higher rate of tax by 2027, new figures released by HMRC show.

The tax authority is forecasting that 1.13 million people will be pulled above the 40% tax threshold by 2027/28, as wages rise quickly and tax bands stay at the same level.

In the first Scottish budget since the country gained more wide-ranging power to control income tax, the SNP’s finance minister has announced plans that will put a squeeze on middle and higher income tax payers in the country.

The first Holyrood budget, announced earlier this month, includes plans for a £190 million raid higher earners that will see some contractors paying £300 more than their English counterparts.