UK chancellor Jeremy Hunt today said the threshold for when the highest earners start paying the top rate of tax will be brought down from £150,000 to £125,140.
“Those earning £150,000 or more will pay just over £1,200 more a year,” he says.
Income tax personal allowance threshold will be frozen until 2028 the chancellor announces. This means millions of people will end up paying more in tax.
Freezing the thresholds means that tax bands will stay the same, even as people’s pay goes up. So as wages rise, the proportion of earnings that we pay tax on will increase, and more people will move into higher tax brackets. The thresholds were already frozen until 2026.