Taxes in the United Kingdom are amongst the highest found in the world, ranking seventh out of ten, according to new research.
Accountants UHY Hacker looked at the tax regimes in 19 major economies and discovered that UK taxes are higher than both the United States and Japan, however other places in Europe, such as Germany, have higher taxes.
Both low and high earners feel the pinch in the UK, with the rich and the poor all experiencing unfavourable rates of tax. UK taxpayers keep between 82 and 60 percent of their tax, which is considerably less than other countries including Ireland, the US and Japan. Of course some countries, such as Dubai, are nil-tax havens where charge no tax is charged whatsoever
These high taxes are thought to be sending more people abroad, especially highly skilled individuals who can keep much more of their high salaries by working abroad. Mark Giddens, one of the people at UHY Hacker behind the research, said: “The 50 per cent 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.”