Income tax: 3.8 million Britons must ‘take action’ or pay more due to allowance freeze | Personal Finance | Finance

Jeremy Cox, head of Strategy at Coventry Building Society, broke down what is at stake due to the freeze on income tax allowances.

He explained: “With just a few weeks left before the end of the current tax year, people should take urgent action to review their finances and start actively managing their tax-free allowances as higher interest rates will see many more savers paying income tax on their savings.

“Frozen thresholds combined with rising wages mean by April next year, a staggering 1.3 million more people will have seen their tax-free personal savings allowance slashed in half from £1,000 to £500 as they become a higher-rate taxpayer.

“Higher rate taxpayers only need to have around £12,500 in a best buy account before the interest they receive uses up their £500 personal savings allowance.”