10 Oct 2013
Almost a third of total income tax revenue came from the country’s top 1% of earners, despite a cut in the additional rate of income tax, new figures suggest.
Latest statistics from HMRC reveal that the best-paid workers will contribute some 29.8% of all income tax receipts in 2013/14. Meanwhile, income tax from those earning in excess of £1 million is expected to account for 11.8% of the total income tax take.
HMRC is thought to collect around £150 billion a year from income tax. To qualify for the top 1% of earners, an individual must have a minimum income of £160,000.
The Conservatives have argued that the findings support its claim that the richest in society are bearing the burden of reducing the Government deficit.
‘These statistics will once and for all end the Labour myth of millionaire tax cuts,’ said Conservative MP, Harriett Baldwin. ‘The 24 million people who have seen their tax-free threshold increased every year are the basic rate taxpayers that are quite rightly getting a tax cut.’
The UK’s additional rate of income tax, payable on income over £150,000, was cut from 50% to 45% in April 2013.
According to a recent study, the tax cut was the biggest in the world in 2013 and has taken Britain’s top tax rate from fifth to 11st highest in the European Union.
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