More people to cross income tax thresholds

Professional Adviser
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An extra 300,000 people are expected to fall into the 40% income tax band next year, thanks to climb...

An extra 300,000 people are expected to fall into the 40% income tax band next year, thanks to climbing salaries, a higher National Insurance rate and a freeze on the personal income tax allowance. David Aaron, of IFA firm David Aaron Partnership, says almost three million people now earn more than the Inland Revenue's £29,900 higher rate income tax threshold, but that number is likely to increase again as the gap between average earnings and higher rate taxpayers has closed by almost 20% in ten years. Ten years ago around 1.7m people fell in the top income tax band, says Aaron, b...

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