TaxPersonal TaxTax burden on wages climbs to record high

Tax burden on wages climbs to record high

Office for National Statistics releases new figures that show increasing tax burden on ordinary wage earners

hmrc

The tax burden on average wages has climbed to 23.6% of wages and salaries,
the highest level ever since records began twenty years ago.

According to the to new figures from the
Office for National
Statistics
, taxes on income climbed by 6.7% over the past year,
outstripping the 4.6% rise in wages and salaries.

The strain of climbing taxes, rising interest rates, inflation and high
utility bills has impacted on consumer finances.

The Treasury
said the ONS data, which was compiled for the last quarter, did not present
a full picture for income tax and its impact on consumers.

‘Using the quarterly accounts data, it is not possible to produce and
accurate figure for income tax ratios for households, as they take no account of
income from a range of sources, for example savings, shares and asset
disposals,’ a Treasury spokesman said.

The Times reports that the level of taxation was at its lowest in
the fourth quarter of 1997, shortly after Labour’s election victory.

Further reading:

HMRC set to increase tax return penalties

Billionaires choose London as a tax haven

HMRC to treat Gaines-Cooper as a one-off

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