People could find themselves paying more tax in 2023 in several “painful” ways, a personal finance analyst has warned. Frozen thresholds and cuts to tax breaks are among the pressures people should be aware of, according to Sarah Coles, senior personal finance analyst at Hargreaves Lansdown.
Ms Coles said: “For most people, the lion’s share of the rise will come from the freeze in income tax thresholds.”
Ms Coles said frozen income tax thresholds mean some people could end up paying more tax on their salary. She 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.
