People are being warned they could end up paying more tax in 2023 once the new financial year begins on April 6. Sarah Coles, senior personal finance analyst at Hargreaves Lansdown said frozen thresholds and cuts to tax breaks are among the pressures people should be aware of this year.
The personal finance analyst explained for most people, the “lion's share” of the rise will come from the freeze in income tax thresholds which could see some people paying more tax on their salary.
Ms Coles said: "The personal allowance - how much you can earn before paying tax - has been frozen at £12,570, and the higher rate threshold - the point at which you start paying 40% - has stuck at £50,270 since April 2021. As incomes rise, employers are under pressure to raise salaries, so their staff can afford to live.”
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