Income tax liabilities soar in 2022-23

Incomes after tax rose across the board in 2022-23 with middle-income groups experiencing the largest rise with the median income rising 4% year-on-year according to HMRC statistics.

The figures show that in 2022-23 there were 34.5 million taxpayers – an increase of 1.5 million taxpayers on the previous year. Total income before tax was £1 390bn (7.3% higher than in 2021-22). Meanwhile total income tax liabilities for the year were £245bn up by about £19.1bn (8.5%) from 2021-22.

Higher earners continue to shoulder a greater share of the income tax bill. The statistics show that additional rate taxpayers accounted for 1.7% of taxpayers and 34% of tax paid while higher rate taxpayers accounted for 14.8% of taxpayers and 34.7% of tax paid. Basic rate taxpayers accounted for 81.8% of taxpayers and 30.8% of total tax paid. Finally savers rate taxpayers...