Top 1% of earners contribute ‘almost a third of income tax revenue’

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.

We can help you plan  to reduce your tax liability

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