What is the 2022/2023 tax year higher rate tax band?
The 2022/2023 personal allowance and higher tax band have remained the same as the previous 2021/2022 tax year.
In the budget the government decided to maintain the higher rate tax threshold at the same level as the previous year.
2022/2023 higher rate tax threshold
When you start earning over the £50270 threshold you will be liable to start paying income tax at the higher rate. You will also be eligible to receive higher rate tax relief on costs like work related expenses and private pension contributions.
This means the 2022/2023 40% tax rate starts at £50271 and stops at £150,000 at which point the tax rate increases to 45% or 46% in Scotland.
The higher rate income tax bracket begins at £150,001 for England, Northern Ireland and Wales and is rated at 46% for Scotland.
A personal tax free allowance has been set at £12570 and the basic rate allowance percentage kept at 20% for the 22/23 tax year.
The standard tax code for the 22/23 tax year will remain in line with the last tax year at 1257L. As a higher rate tax payer it’s important to make sure your 2022/2023 tax code is correct with it including everything it should like the correct company benefits.
