Paying tax in view of 2021 budget announcementWatch
Is there a massive impact to those who were already earning above the 50k and paying 40% tax threshold prior to chancellor discussing that this will be frozen in terms of paying 40%
Normally, you'd expect the threshold to rise slightly, and would then have less of your income in the 40% tax bracket.
In theory or practice.
Particularly given that the combination of covid, pandemic restrictions & brexit are likely to adversely impact upon the incomes of most taxpayers and pre-tax profits of most high street businesses.
If the personal allowance increases, then those people earning above that will pay less tax. But if it doesn't change, then the amount you pay doesn't change.
It's typically the case that the personal allowance and tax bands increase each year. But it doesn't always happen.