The variety of pensioners shouldering an revenue tax burden has risen by greater than 4 million, official figures present.

Some 8.5 million folks aged 65 and older are actually revenue taxpayers – a rise of round 10 p.c previously 12 months, in response to HM Revenue & Customs information. The quantity has doubled since 2004-05 when just below 4.3 million pensioners paid revenue tax.

And this tax 12 months there shall be 35.9 million folks of all ages paying revenue tax – an additional 4.2 million on the 31.7 million paying in 2020-21. This means a £30billion enhance to Treasury coffers by 2028 – costing every UK family the equal of £4,200.

John O’Connell, chief government of the TaxPayers’ Alliance, stated: “Britons are being battered by stealth taxes.

“Frozen income tax thresholds are contributing to falling living standards during a cost-of-living crisis. The Government should give taxpayers a break and raise thresholds in line with inflation.”

Income tax thresholds are frozen till 2027-28 below a coverage launched by Prime Minister Rishi Sunak when he was Chancellor in 2021, after which prolonged by the present Chancellor Jeremy Hunt.

Someone incomes £20,000 in 2022-23 pays £870 further by 2028, equal to a 10p rise in revenue tax, stated Interactive Investor. Someone on £50,000 pays £1,924 further by 2028, equal to a 5p rise.

Economists say this “fiscal drag” of employees over the upper price tax thresholds will see 5.6 million increased price taxpayers in 2023-24 – a 40.7 p.c improve in contrast with 2020-21.

Higher price taxpayers now make up a projected 15.6 p.c of the general tax-paying inhabitants within the present tax 12 months. There has additionally been an eight p.c improve to 29.4 million primary price revenue taxpayers between 2020-21 and this 12 months.

Workers can earn an ordinary Personal Allowance of £12,570 earlier than paying taxes. A primary price of 20 p.c is due on something between £12,571 to £50,270. Higher price taxpayers pay 40 p.c on earnings between £50,271 and £125,140.

This means an rising variety of middle-income earners reminiscent of headteachers (with a mean wage of £60,860), senior nurses (Band 8 on £58,972) and opticians on £54,302 are paying a better price of tax. An extra tax demand of 45 p.c is due on something above £125,140.

Sir Steve Webb, a former pensions minister who's now a accomplice at consultants LCP, urged the numerous improve within the variety of older folks paying tax had been pushed by the bumper 10.1 p.c improve within the state pension this April, alongside inflation-linked rises to different pensions.

He stated: “A combination of high inflation and frozen tax allowances means that well over eight million people aged 65 or over are now paying tax, a doubling in the last two decades.

"The number of pensioners paying tax will continue to increase rapidly in years to come, particularly if inflation remains relatively high and thresholds continue to be frozen.”

Sarah Coles, head of private finance at Hargreaves Lansdown, stated: “The stealth tax rate has dragged more than four million people into paying income tax, and it has also inflated the numbers paying higher and additional rate tax.

“Back in the 1990s, fewer than five percent of people paid higher rate tax, whereas now it’s more than 15 percent. It’s the last thing people need at a time of runaway inflation, and things are only going to get worse.

“We’re still only very near the start of the income tax threshold freeze – which kicked in from April 2022 and is set to last until 2028.

“It means things are set to get even worse over the next few years. We’re going to see a steady stream of taxpayers crossing thresholds and paying eye-watering levels of tax.”

Alice Guy, head of pensions and financial savings at Interactive Investor, added: “The stark figures demonstrate the chilling effectiveness of freezing tax thresholds.”