More Higher Rate Taxpayers

Bevan & Buckland logoMore Higher Rate Taxpayers

According to figures recently released, the proportion of taxpayers who pay above the basic rate of tax on their income continues to increase, writes Bevan & Buckland Chartered Accountants Tax Manager, Lee Bradley.

Figures released by HMRC prompted the Telegraph to run the headline, “A million more to pay higher rate tax due to Coalition’s Budget changes“. Although perhaps slightly sensationalist, as the increase of one million is based on a 2009/10 starting date and therefore covers three Coalition Budgets, the figures speak for themselves: 

Tax Year No of

Taxpayers

40% Rate 50% Rate Above

20% Rate

2009/10 30.6m 3.19m N/A 10.4%
2010/11 31.0m 3.00m 0.255m 10.5%
2011/12 30.1m 3.57m 0.294m 12.8%
2012/13 29.7m 3.80m 0.307m 13.8%

Next year’s planned cut in the higher rate threshold from £42,475 to £41,450 is estimated to add another 300,000 people to the higher rate tax population according to HMRC, although the Institute for Fiscal Studies puts the rise at closer to 325,000. 

The population of taxpayers is forecast to fall in 2013/14 because of the £1,100 hike in the Personal Allowance (840,000 down according to HMRC), however by that point the proportion of people paying more than the basic rate will be close to 15%.   By comparison, in 2003/04 it was 10.4%.

If ever there was an argument for getting proper tax and financial advice, surely this is it!

Bevan & Buckland don’t just do tax returns.  A major part of our service, to both individuals and companies, is tax planning.  In conjunction with our Financial Planning department we have a number of ways in which we can help you to reduce the amount of tax paid. 
If you would like to know more, or would welcome a free initial discussion to see if we can help, please contact me at our Swansea office using the details below.

Lee Bradley
Tax Manager

It might be easier for you to contact one of our other offices? If so please contact either Alun Evans in our Haverfordwest Office or Caroline Wheeler in our Pembroke Office.

Bevan & Buckland Accountants Swansea Tel: 01792 410100

Bevan & Buckland Accountants Haverfordwest Tel: 01437 760666

Bevan & Buckland Accountants Pembroke Tel: 01646 682383

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