1 in 6 pay more than Basic Rate Tax

HMRC have updated their income tax payer data.

HMRC have updated their income tax payer data.

Charts showing taxpayers by numbers and taxpayers by tax payable

HMRC regularly updates data on income tax payers and last month it produced a revised set of numbers. These give an interesting insight into the drivers behind tax policy, and in particular, the emphasis on reducing tax avoidance.

The heavy dependence on additional and higher rate taxpayers helps to explain why pension tax reliefs have been squeezed and the relentless attack on the more aggressive forms of tax avoidance.

If you are in the 1 in 6 who pay more than basic rate, the second pie chart is a reminder why the Chancellor will not rush to reduce your tax bill. Fortunately there remain plenty of tried and tested opportunities to cut your contributions to the Treasury. Please call us to discuss the income tax planning options which are relevant to you.