Nearly one in five paying higher rate of tax after stealth hikes - how to cut what you pay

Nearly one in five taxpayers are now paying the higher rate of income tax after years of stealth rises.

There will be 7.7 million higher-rate taxpayers – who are charged 40p in income tax for every extra £1 they earn – in this tax year, HMRC figures suggest, because they earn more than £50,270.

This is up by one million people in two years.

Shorts

A further 1.3 million will pay the additional rate of tax, meaning they pay 45p for every £1 earned on their income above £125,140. This is more than double 2021-22 levels.