Less that two weeks after the government announced it was scrapping the 45% income tax rate, it’s reversed this decision. The 45% rate applies for people earning more than £150,000.
At the mini budget on the 23rd of September 2022, the Chancellor announced that from April 2023 the 45% tax rate would be abolished, leaving just one higher rate of tax of 40%.
However, over the following days there was a lot of debate about whether this was the right time for cutting this rate of tax, and on the 3rd of October, the government announced it was scraping the reduction. The 45% rate of tax will therefore remain for earnings over £150,000.
For more details about the budget check out https://newtonaccountants.co.uk/23-september-2022-mini-budget-and-growth-plan