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Income tax increase for UK contrasts with worldwide trend

The UK has seen a rise in income tax for high earners by 4%, while the worldwide average has been cut (5.6%).

Research by business and accounting group UHY Hacker Young has revealed that high earners, with an income exceeding £810,000, have a current rate at 43%. In 1996, this stood at 39%.

However, UK taxpayers in a low-income bracket of £24,300 will welcome the cuts, having seen a 9% reduction in tax bills. The worldwide average is at 11%.

UHY Hacker Young partner Mark Giddens, said:

“The argument made, by some, is that high taxes for higher earners reduces the incentives for those top earners and entrepreneurs to work harder and create more wealth and jobs. While those on lower incomes have seen an improvement, the amount of tax high earners should pay has been the subject of fierce debate.”

UHY researched tax information from 26 countries in its global network. The research revealed a 95% growth in UK GDP in the last 30 years, compared with the worldwide figure of 135%.

Tax can be a complicated business and changes are seemingly being made all of the time. Businesses especially need to keep up to ensure that they do not unnecessarily attract the attention of HMRC. An accountant in the Wirral is more than capable of ensuring that the numbers add up and the books are up to date.

Posted by Louise
November 24, 2016
Research & Statistics

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