Record numbers paying highest rate of tax
Figures from HMRC show a record number of people are now paying the highest rate of income tax as a result of wage inflation and reductions in pension tax relief. By the end of this tax year, HMRC expects 364,000 workers to be paying 45% income tax, a 10% rise on the previous year and a 54% rise since the tax band was introduced seven years ago. Meanwhile, the number in lower tax bands has fallen or remained static. In addition, HMRC predicts that 600,000 low earners will be taken out of tax over the course of the last and the current tax year.
Source: The Daily Telegraph (01/06/2017)