HMRC Releases Taxpayer Numbers

HMRC Releases Taxpayer Numbers.

HMRC has released its latest estimates for the numbers of taxpayers in different bands in the United Kingdom and the results are surprising.

For 2014/15

• 24,200,000 basic rate taxpayers
• 4,470,000 higher rate taxpayers
• 312,000 additional rate taxpayers

These numbers have been consistently falling since the Conservative/Liberal Democrat coalition came into power and despite opposite party rhetoric, it is the fall in the basic rate taxpayers that really helps the masses.

Comparing figures from 2010/11 (when the coalition took over from Labour) the figures were as follows:

• 27,100,000 basic rate taxpayers
• 3,020,000 higher rate taxpayers
• 236,000 additional rate taxpayers

The numbers do not lie. The figures for the previous year 2009/10 were very similar as well.

Under a Labour government there were more basic rate taxpayers and less higher rate taxpayers. Under a Conservative led government there are more additional rate taxpayers (i.e. more high earners paying the highest rate of tax) and more higher rate taxpayers paying 40% income tax. In addition, there are less basic rate taxpayers meaning more people have moved into paying no tax whatsoever.

Comment

it will be interesting to see whether the Conservative government will keep their manifesto promise to have the threshold at which you move to become a higher rate taxpayer increase to £50,000.