More dragged into higher rate tax

HMRC figures show that 230,000 more people will be pushed into the 40% tax band by 2015, taking the number of higher rate taxpayers to 5 million, because the threshold for the 40% tax rate will rise by less than inflation over the next two years – to £41,865 in April 2014 and £42,285 in 2015.

So despite the rise in the tax-free personal income tax allowance to £10,500 in April 2014, many people will end up paying more income tax.