Impact of Freezing Tax Bands
Largely as a result of the freezing of tax bands, the number of higher rate and top rate taxpayers has increased signficantly since tax year 2021/22.
Higher rate taxpayers pay 40% tax and top rate taxpayers pay 45% tax.
There are estimated to be 6.3 million higher rate (an increase of 43%) and 1.1 million top rate tax payers (an increas of 50%).