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An extra 10,000 higher earners will be dragged into the top tax band because of rising wages, economists say.
Some 310,000 higher earners will be pushed into the 45p tax bracket next year, forking out an extra £1.1bn in tax, according to The Centre for Economics and Business Research.
This is 10,000 more taxpayers than currently forecast by the Office for Budget Responsibility and a £300m rise in projected revenue.
Economists said official forecasts had underestimated the “fiscal drag” effect of frozen tax thresholds and wage growth, which hit 7.8pc in the three months to June – outpacing inflation for the first time in nearly two years.
The number of people paying the highest rate of tax is already on track to almost double in a matter of years by April 2024 to 862,00, up from 433,000 in 2020-21.
Once reserved for society’s richest, the 45pc tax rate is now catching a larger portion of the population.
Since former Prime Minister Gordon Brown introduced the additional rate, which came into effect in April 2010, the number of individuals paying the top rate of tax has increased fourfold, up from 236,000.
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