Higher rate taxpayers due to break 1m

The Treasury has confirmed nearly 1m more people will be paying the higher rate of income tax by the end of the decade, regardless of the outcome of the general election.Despite David Cameron’s commitment to increase the 40p threshold from £41,900 to £50,000 a year by 2020, Treasury figures show that 5.5m people will be paying income tax at 40% at the end of the decade, 900,000 more than at present. The Institute of Directors is calling on the chancellor to raise income tax thresholds in a more consistent way, suggesting the introduction of a "triple lock", meaning thresholds rise annually by inflation, average pay rises, or 2.5% - whichever is higher say Harris & Co accountants Northampton