It’s hardly surprising that HMRC’s latest data shows over 6.1 million people are paying Higher or Additional Rate Tax at 40% or 45%. With the number of people paying Income Tax projected to be 34 million in 2022/23 not far short of 20% of all taxpayers are paying higher or additional rate tax. That is around 54% higher than just a decade ago.
The freezing of the personal allowance and not increasing all tax bands in line with inflation means that those paying Higher Rate and Additional Rate Tax will continue to increase.
The longer that inflation continues at elevated levels will make matters worse.
Now more than ever proper tax planning is needed. We can help.
Trevor Downing FPMI FPFS
