700,000 more tax rates
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This year there are about 3 million people who pay the tax rate of 40 percent, but this will increase by close to one-quarter to 3.7 million, according to accountants.
They calculated figure after the Treasury has published details on income tax thresholds and the rate of insurance for the taxation year 2011-2012 on its Web site.
These would normally be confirmed in the budget report before fall. But as George Osborne, the Chancellor had a budget of emergency in June, shortly after the coalition Government came to power, no fall statement has been made.
Each year, tax thresholds are drawn between the budget and the end of the year to take account of inflation, normally to the figure of September. The final details have been published, as a result, yesterday.
Mike Warburton, senior partner at Grant Thornton, accountants, tax stated: "with these extra 700 000 higher rate taxpayers, we are almost at the record level reached when Gordon Brown was Chancellor, where there was higher 3.87 million taxpayers of."
Back in 1997, when labour came to power, he was just 2 million higher rate taxpayers.
The dramatic jump in the number of 40 percent paying tax is because the Government has raised the level at which people begin paying taxes, raise 1,000 ￡ to ￡ 7,475, tax-free allowance by dragging one million people to pay a tax on income at all. However, he was keen that the middle classes do not benefit from this change, he said that it would reduce the speed at which paid higher rate tax.
This taxation year over ￡ 43,875 earnings are taxed at 40%. But next April this threshold will be lowered to ￡ 42,475, the Treasury Board has confirmed today.
M. Warburton, said: "I'm all in favour of raise the lower threshold." But the coalition was desperate not step to see benefiting from the middle classes. The threshold to ￡ 42,475 is only average earnings 1.6 times, many people will be relatively low income to pay such a high tax rate. ?
Not only are there people more pay 40% tax rate, but they are also affected by increasing the rate of insurance. Previously employed earn p 40 tax paid rate 11% national health insurance. This will increase to 12%.
Deloitte, the accounting firm has been calculated that anyone win ￡ 50,000 will be worse ￡ 747 off the coast of next year.
Patricia Mock, a Director in the practice of Deloitte, private customers said: "people who earn between ￡ 40 000 and 50 000 ￡ and upwards will be significantly worse than before."
She noted that in April 2013-rate taxpayers with children will face another blow when they lose out on family allowances. This payment was worth ￡ 1,750 per year for the whole family with two children.
