Selasa, 01 Mei 2012

Number of taxpayers caught in 40p band rise by 800,000 to 3.8million since Cameron came to power

Number of taxpayers caught in 40p band rise by 800,000 to 3.8million since Cameron came to power

By Becky Barrow

PUBLISHED: 19:10 EST, 1 May 2012 | UPDATED: 19:10 EST, 1 May 2012


Around 800,000 more taxpayers have been caught in the 40 per cent tax trap since David Cameron came to power.

Experts warn that soaring numbers of people ‘who would not consider themselves rich’ will pay the higher rate.

The figures, released by the HM Revenue and Customs yesterday, show there were three million higher rate taxpayers when the Coalition came to power in May 2010.

Those who would not consider themselves rich, such as heads of school departments, senior nurses and middle managers, have been hit by the tax trap

Those who would not consider themselves rich, such as heads of school departments, senior nurses and middle managers, have been hit by the tax trap

Today there are 3.8million, a rise of 800,000 people, including families struggling with mortgages, record prices at the pump and crippling energy bills.

And the Treasury expects an extra 630,000 higher rate taxpayers in the 2013-14 tax year as the threshold for the 40p rate drops again from £42,475 to £41,450. In 2010-11, the cut-off earnings figure was £43,875. 

Mike Warburton, of accountants Grant Thornton, said the change hit those who would not consider themselves rich, such as heads of school departments, senior nurses and middle managers.

Labour Treasury spokesman Chris Leslie said: ‘Hundreds of thousands of people will be reeling after checking their pay slips this month. They will be shocked by the sleight of hand in this tax grab.’

A Treasury spokesman said: ‘The Government has increased the personal allowance, which benefits basic rate taxpayers and most higher rate taxpayers this year and next.’

It comes as the Institute for Fiscal Studies said recently that the higher rate tax trap is hitting people who earn ‘above average’ salaries but ones which are ‘relatively modest.’

The respect economic forecaster also exposed the dramatic increase in the percentage of all taxpayers who are caught in the 40 per cent tax net.

In 1978, it caught just three per cent of taxpayers. By the late 80s, it had risen marginally to five per cent. But today it is 12.5 per cent, and will affect a staggering 15 per cent next year.

At present, there are 29.7million taxpayers in Bri tain. Of the total, 4.1million, which is equal to 13.8 per cent, are either higher rate taxpayers or ‘additional’ 50 per cent taxpayers.

HMRC’s figures also show how poorer workers are being helped by the Government’s policy, with the number of basic rate taxpayers dropping by 2.3million since 2010.

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