More than one million people in UK are set to start paying income tax in the next five years, official forecasts say, due to a move announced in the Budget.
Chancellor Rishi Sunak said that the threshold at which the tax starts being paid will be frozen until 2026 after a rise this April.It means getting a pay rise could pull people into a higher rate of tax.
At present, people start paying 20% income tax when they earn £12,500 a year, known as the personal allowance.
The starting point for paying the higher 40% rate is £50,001.
These thresholds will go up to £12,570 and £50,270 in April, but will then be frozen until April 2026.
The Conservative manifesto pledged that the main rates of income tax, national insurance and VAT would not rise, and this does not break that pledge.