A million 'middle managers' fall into higher rate tax bracket

clock

Almost a million more people will fall into the higher rate tax band due to changes to tax thresholds made by the government, the Daily Telegraph reports.

It said figures released by the tax office show almost a third more workers will pay 40% tax or more during this financial year than paid it three years ago - taking the total of higher rate taxpayers to 4.1 million. The report said about 300,000 of these will pay 50% tax. However, the report added while the number of higher rate taxpayers would increase - due to a combination of factors including 'fiscal drag' where tax bands do not more in line with inflation - the overall number of taxpayers would fall this year from 30.1m to 20.7m. This is due to more of the lowest paid people bein...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Lords committee calls on government to rethink IHT reforms

Lords committee calls on government to rethink IHT reforms

Warns IHT on pensions will place ‘huge burden’ on personal reps

Isabel Baxter
clock 28 January 2026 • 6 min read
Budget 25: IHT nil rate bands frozen until 2031

Budget 25: IHT nil rate bands frozen until 2031

Confirmed in Budget documents today

Isabel Baxter
clock 26 November 2025 • 2 min read
How charitable giving could help mitigate the IHT on pensions impact

How charitable giving could help mitigate the IHT on pensions impact

Castlefield adviser unpacks what the IHT on pensions changes mean for charitable gifting

Isabel Baxter
clock 27 October 2025 • 3 min read