Around 2.5 million taxpayers will be pushed into the higher income tax category, meaning their earnings will be taxed at 40%.<\/p>\n\n\n\n
Once your earnings reach a particular level, income tax is deducted from them.<\/p>\n\n\n\n
However, the government has decided to freeze income tax bands, effectively reducing workers’ wages.<\/p>\n\n\n\n
The personal allowance, which is the amount you can earn before paying income tax, has been frozen at \u00a312,570.<\/p>\n\n\n\n
From \u00a312,570 to \u00a350,270, the basic rate tax bracket kicks in, and you’ll pay 20% of your earnings in income tax.<\/p>\n\n\n\n
If you earn between \u00a350,270 and \u00a3150,000, you’ll have to pay twice as much at 40%.<\/p>\n\n\n\n
If your salary rises but the income rate bands remain unchanged, you will owe the government extra money.<\/p>\n\n\n\n
However, according to analysis conducted by the pensions consultant Lane Clark & Peacock, if the thresholds were raised in pace with inflation, just 800,000 of the 2.5 million taxpayers who are expected to be driven into the 40% tax bracket would still be pushed into the higher level.<\/p>\n","protected":false},"excerpt":{"rendered":"
Around 2.5 million taxpayers will be pushed into the higher income tax category, meaning their<\/p>\n","protected":false},"author":11,"featured_media":16576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[9],"tags":[967,966],"class_list":["post-16575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-tax-increases","tag-workers"],"yoast_head":"\n