One in six pay more than basic rate tax

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HMRC have updated their income tax payer data.

Total taxpayers by rate type pie chart Total income tax receipt by rate type pie chart

HMRC regularly updates data on income tax payers and in May it released its latest figures. These give an interesting insight into the potential 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 more aggressive forms of tax avoidance have been attacked.

If pay more than the basic rate, the second pie chart is a reminder why the Chancellor will not rush to reduce your tax bill. Fortunately there are plenty of tried and tested measures you can take to lower your tax bill yourself.

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