TaxPersonal TaxStealth tax to hit Britain’s middle class

Stealth tax to hit Britain's middle class

Income tax brackets have not shifted in line with inflation

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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