Maike Currie, vice president of personal finance at PensionBee said: “Freezing thresholds until the 2030/31 tax year is the biggest stealth tax in the system, quietly pulling teachers, nurses and mid-level professionals into the 40 per cent tax bracket.
“Since the higher-rate threshold was frozen, inflation and wage growth have done the heavy lifting for the Treasury.
“The tax system hasn’t become more complicated overnight, but it has become less forgiving. Small income changes can disproportionately affect your take-home pay, making planning essential.
“Pensions, ISAs and salary sacrifice are vital tools for managing tax and avoiding a drift into higher bands.
“For many, these will be the difference between drifting into a higher tax bracket and consciously deciding how and when income is taxed.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.