High and low earners in the UK pay some of the highest tax rates in the world, according to new research.
A study by accountants UHY found that people earning less than £15,242 a year were being taxed at the seventh highest rate out of 19 countries as were those earning more than £121,900 per annum.
It found those in the UK earning £15,242 or less a year got to keep just 83.2% of their income.
In comparison, workers earning the same in Japan and the US got to keep around 90%, those in Ireland 95.7% and Dubai all of their earnings.
Meanwhile high earners in the UK take home only 60.9% of their pay once they have paid tax, considerably less than the 87% they would keep in Russia and the 80.4% they would retain in Egypt, while Dubai is tax-free.
Mark Giddens, private client partner of UHY Hacker Young in the UK, said: “The 50% tax rate on people earning more than £150,000 a year, combined with increases in national insurance, has undoubtedly made the UK less attractive to high earners. Many of these people will be highly skilled and they are usually very mobile.”
Copyright © Press Association 2011
Category => Finance
Category => News
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