Squeeze on middle classes as 50,000 more forced to pay higher-rate tax

• Figures on taxation have been revealed in written answer to MP Cathy Jamieson

Workers earning more than 42,475 will lose almost 1,300 a year after being bumped up to paying the higher rate of tax.

The move will cost them at least 280 a year in extra tax, while in a double blow parents will also see 1,015 taken from them in lost child benefit.

Experts last night insisted that ordinary middle-class families were being "squeezed" by the government's tax changes.

And Labour claimed that lowering the 40 per cent tax threshold would be "devastating" for thousands of Scottish families.

The sleight of hand by Treasury ministers means that a total of 281,000 Scots are now on the higher rate of tax, according to figures published yesterday.

It comes on top of a rise in VAT from 17.5 per cent to 20 per cent, a hike in fuel duty and a 1 per cent rise in personal contributions on National Insurance.

Mike McCusker, a tax partner at PriceWaterhouseCoopers, said that middle earners are an "easy target" for the government.

"People in reasonably well paid jobs as opposed to high earners are definitely being squeezed," he said.

The changes to the tax thresholds meant, he said, that somebody in the higher tax band of 40 per cent would lose 480, which would be offset partially by the 200 gained by raising the lower tax threshold, meaning an overall loss of 280.

From April, the threshold for higher-rate tax will be 35,000 of taxable income, compared with 37,400 now. The personal allowance - the amount you can earn without paying any tax - will rise to 7,475 from 6,475.

He added: "You have to remember that on top of that there have been the other tax increases to VAT and National Insurance which will hit people and those who are in the higher band will also lose out on child benefit as a result of the changes brought in by the government."

He said that middle earners could potentially avoid the extra tax by making higher pension contributions or turning to saving money in ISAs.

The figures on taxation were revealed in a written answer to Labour Kilmarnock and Loudoun MP Cathy Jamieson. She said: "I don't think the government has been honest and clear with the Scottish public over just how many people are affected by their plans. If you are trying to bring up a young family every penny counts; this will be devastating news to so many Scots families."

She added: "2011 is going to be the year when the Tory cuts really hit home. These figures bring home just now many people will be hit by the tax changes.

"People have asked us to define the squeezed middle - the Tory-led government has done just that."

New groups of earners such as depute headteachers or police inspectors will be dragged into the higher bands.

Charlotte Linacre, campaign manager at the TaxPayers' Alliance said: "This is bad news for middle-income families in Scotland who suddenly find themselves surprised to be classed as high earners. The reality is hardworking taxpayers who have just been pushed into the 40 per cent tax band are nowhere near to being rich and are already squeezed by other tax hikes and the cost of living.

"New tax hikes will hurt people who work hard or start a new business, who are then less able to create new jobs and prosperity.

"Tax rises like this aren't the way to get the economy moving, politicians need to work to lower spending and lower taxes, not pass the buck to those who in reality don't have any spare cash."

However, in an interview Deputy Prime Minister Nick Clegg yesterday hinted that there might be a further squeeze on middle earners when he talked about the need to "rebalance the tax system" after the government had reduced public spending.

He was also referring to taking low earners out of tax and the Treasury figures published yesterday show that 71,000 Scots will no longer be paying income tax as a result of the lower threshold being raised.