The latest figures from HMRC show there were 5.1 million people paying the higher 40% rate of tax in 2022/23 tax year - up by 680,000, or 15.3%, compared to the previous year
In 2022/23, 5.1 million Brits paid the higher 40% tax rate, a 15.3% increase from the previous year. This rise is attributed to "fiscal drag," as frozen income tax thresholds pull more people into higher tax brackets due to inflationary pay rises. The number of additional-rate (45%) taxpayers also increased, and a freeze in the personal allowance resulted in 1.5 million more people paying income tax. Higher-rate taxpayers contribute a significant portion of the UK's income tax revenue. Projections estimate the number of higher-rate taxpayers could reach 9 million by 2028 and 10 million by the end of the decade.
