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Stealth tax to hit Britain's middle class

by Accountancy Age

20 Apr 2009

Accountants have found that their clients in middle-class dominated areas are paying high effective rates of income tax.

UHY Hacker Young found that residents of St Albans, Hertfordshire, paid the highest rate of income tax per head in the UK last year. The average resident earned £43,500 and paid £10,500 in income tax in 2008.

The firm claims that the middle class has been most affected by the government's decision not to raise the tax bands in line with wage inflation.

The average UK income has risen 15.2% since 2005 but the average income tax contribution has jumped 19.6%.

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