What is the 2022/2023 tax year top rate tax band?

The 2022/2023 top rate and higher rate tax bands have been kept the same as the previous 2021/2022 tax year. This was announced in this years budget and means not too much will change for top rate tax payers.

In addition the 22/23 tax free personal allowance has been retained meaning the standard tax code of 1257L is still in operation.

2022/2023 top rate tax threshold

The top rate of tax is 45% for England, Northern Ireland and Wales and 46% for Scotland. The top rate of tax is applicable on earnings over £150,000 meaning every penny earned over that figure is taxed at 45% (or 46% in Scotland).

Other tax rates for 2022/2023

HMRC have maintained a higher rate of tax being paid on earnings from £50271 and is set at a 40% rate.

The tax free personal for the 22/23 tax year remains at £12570 with the basic rate coming in at 20%.

Top rate tax and 2022/2023 self assessment tax returns

If you are a top rate tax payer for the first time HMRC will automatically ask you to complete a self assessment tax return because you earn over £100,000. This is standard practice by HMRC and will allow for any overpaid tax in the year to be refunded or underpaid income tax to be collected.