Higher rate taxpayers to hit 5.5m

Tax

The number of higher rate taxpayers is expected to reach 5.5m individuals in 2022-23. 

 

This will mean a record number of taxpayers will be paying the higher rate of 16.2%, an increase of 4.1% from 2021-22. This is mostly due to the higher rate threshold being frozen at the 2020-21 level. The threshold freeze is due to be in place until 2025-26 which will continue to draw more taxpayers into the higher rate band.

 

Since 2010, over two million taxpayers have fallen into the higher rate tax band.

 

It is also predicted for there to be over 629,000 additional rate income taxpayers in 2022-23. This figure accounts for 1.9% of all taxpayers. The additional rate threshold has been frozen at £150,000 since it was introduced in 2010.