Will you be paying the higher rate of tax?

Nearly 8 million taxpayers will be caught in the higher income tax net by 2027, as the freeze in tax bands begins to bite, according to new research from the IFS.

It means one in five taxpayers, and one in four teachers, will be paying the 40% tax rate. The IFS report said: “In the space of 40 years, higher rates of income tax will have gone from being a feature of the system reserved for those with the very highest incomes, to one that impacts a far more substantial proportion of the population.”

Read more on page 17 of the latest issue: PQ magazine, July 2023 by PQ magazine – Issuu