Individuals paying additional rate tax to soar in 2024-25

28 June 2024

Issue: 4943 / Categories: News

In 2024-25 there will be an estimated 37.4 million income taxpayers up 4.4 million from when thresholds were frozen in 2021-22 according to HMRC statistics. This includes 8.5 million taxpayers over state pension age – an increase of 26% from the 6.7 million taxpayers in the same position in 2021-22.

Overall there are a projected 29.5 million basic rate tax taxpayers – up 2.1 million since 2021-22 - and some 6.31 million taxpayers will be liable to the higher rate of tax compared with 4.43 million in 2021-22 or 42%. There are an estimated 1.13 million additional rate taxpayers in 2024-35 which is a 117.1% increase from 2021-22 when the number was 520 000. Additional rate income taxpayers make up a projected 3% of the overall income tax paying population in 2024-2025

The statistics show that HMRC expects to raise...

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