Nurses, teachers and police officers will be among 7.8 MILLION people dragged into the 40p tax band in stealth raid that will leave a FIFTH of all taxpayers above the threshold, according to the Institute for Fiscal Studies

A report out today warns that one in five taxpayers will pay the higher rate by 2027 as a result of the Government’s controversial freeze on tax thresholds. In total, 7.8million people will be paying 40p tax – almost five times the figure in the early 1990s when it was seen as a tax reserved for the rich.

The news triggered fresh calls for Rishi Sunak and Jeremy Hunt to cut the tax burden, which is at its highest since the Second World War.

Ex-Cabinet minister Simon Clarke said: ‘We think we are suffering with our income tax burden now, but this analysis shows the worst is yet to come.

New research has found that one in five taxpayers will be dragged into the 40% rate by 2027

The basic rate of income tax (20%) currently kicks in on earnings over £12,571, and the higher rate of 40% at £50,271. Although, it’s the portion of your salary over each bracket taxed at those amounts, rather than your whole income.

One in eight nurses and one in four teachers are set to be hit with bigger tax bills, when previously they were in the basic tax band.

Here is the full list of jobs identified at risk:

Teachers
Nurses
Machinists and fitters
Electricians
Architects and surveyors
Legal professionals
Police officers

It’s important to note that other professions could be affected, but the IFS chose these occupations because the sample size is big enough. Plus, the nature of the jobs has remained largely unchanged over time.

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