Tax freezes hit hard
Posted on 03 Jul 2024
Compared to 2021 when the tax thresholds were frozen a huge £63.2bn in income tax is predicted to be raked in by HMRC this year, with the total being a huge £272.6bn, £16.3bn more than the previous year.
This has forced 1.77m over the state pension age to pay income tax since 2021, which will only increase as thresholds are set to stay put until at least 2028.
The data estimates that since thresholds were frozen in the 2021/22 tax year 4.4 million more people will be dragged into paying income tax in the current tax year.
From 2010 there is predicted to have been up to 6.1m more taxpayers, with 3.3m more higher rate taxpayers and 900,000 additional rate taxpayers.
