The number of people paying income tax at 40 per cent or above will reach 7.8mn by 2027 to 2028, according to research by the lnstitute for Fiscal Studies (IFS).

In a report titled, A deepening freeze: more adults than ever are paying higher-rate tax, the IFS revealed that one in five taxpayers and one in seven of the adult population, will be paying the higher rate tax.

This is near-quadrupling of the share of adults paying higher rates since the early 1990s.

By 2027 to 2028, more than one in eight nurses and one in four teachers are set to be higher-rate taxpayers.

IFS said this represents a “seismic shift” compared to the 1990s when no nurses and just one in 16 teachers paid higher-rate tax.

The six-year freeze to income tax allowances and thresholds which started in April last year is now set to become the single biggest tax-raising measure since Geoffrey Howe doubled VAT in 1979, according to the IFS.

It will play a major role in expanding the reach of higher rates over the coming years.

The freeze will also compound challenges facing the many workers whose earnings are not keeping up with inflation, the IFS explained.

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