• About Us
  • Contact Us
  • Today Headline
  • Write for us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
    • Software & IT
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

UK’s top 0.1% earners have annual income of over half a million, says IFS | Business

April 7, 2022
in Enterprise
Reading Time: 2 mins read


The top 0.1% of earners in the UK have annual incomes in excess of £500,000, according to a study by a leading thinktank that shows the effect of “unfair” tax rates available to business owners.

More than 50,000 people in the top income bracket account for 6% of all earnings – 60 times greater than their population share, said the Institute for Fiscal Studies in a report covering the 10 years to 2019. It showed that more than half of the top 1% richest adults lived in London and the south-east, while almost 60% were aged between 45-64, and as few as a fifth were women.

The report, Top Income Inequality and Tax Policy, shows that earnings from self-employment and business ownership were far more important for those at the top end compared with low and middle earners.

Suggesting that this has consequences for inequality because income from company ownership is taxed at a lower rate than earnings from work, the report argues that reforms could be launched to tackle unfairness in the tax system.

Alex Beer, welfare programme head at the Nuffield Foundation, which funded the research as part of the IFS Deaton review of inequalities, said: “The current design of the tax system, including the way in which different forms of income are taxed at different rates, is unfair and inefficient, penalising employees and distorting investment decisions, to the detriment of social wellbeing.”

According to the report, business income – from either self-employment or owning and running a company – accounts for 21% of total incomes for the top 1% of adults and 29% for the top 0.1%, compared with just 9% for the rest of the population at large.

It said business owner-managers could effectively choose to take income out of their company through the form of a salary, dividends, or capital gains – allowing them to benefit from lower rates of tax.

The report pointed to a preferential 10% rate of capital gains tax, called business asset disposal relief, while saying that company owner-managers were able to access tax rates of just 27% on income taken in the form of capital gains.

In comparison, the average tax rate on wage earners in the top 1% is 42%. The government sets the basic rate of income tax at 20% on earnings above the tax-free personal allowance of £12,571, up to £50,270, with a rate of 40% on income above £50,271, and 45% above £150,000.

Despite the lower rates open to business owners, the IFS said taxes on the highest-paid wage earners had increased since 2010. As a result, the share of overall after-tax income in the UK received by the highest earners had fallen from 14% in 2009-10 to 11% in 2018-19.

Illustrating the gulf between public and private sector pay at senior levels, the Taxpayers’ Alliance said in a report earlier this week that only 2,921 people employed by local authorities in 2020-21 received more than £100,000 in total remuneration and 739 received over £150,000, 46 more than the previous year.

According to the Institute for Government, just 1,560 of the 456,410 civil servants earned more than £100,000 in 2020. Across the whole civil service, the majority of staff (55%) were paid below £30,000.

  • Trending
  • Comments
  • Latest

Increase Your Steadiness when Hunting

8a7c1c7b 6b14 47d2 8e96 f33bfb9f632d – TodayHeadline

China exerts control over internet cable projects in South China Sea

93364ee0 57b2 4c7a 995b faf3c807fa43 – TodayHeadline

Trump media Spac dismisses CEO and confronts delisting threat

shining a light into t – TodayHeadline

Shining a light into the ‘black box’ of AI

retrofit – TodayHeadline

Survey says: L.A. ❤️ earthquake retrofitting

IMG 4417 copy – TodayHeadline

2024 GMC Hummer EV SUV First Drive Review: Still impressive, even out of its element

Gekas Ullared The department store in Sweden so big its – TodayHeadline

Gekas Ullared: The department store in Sweden so big it’s now the country’s No.1 tourist attraction

fd3f2066 70ac 4623 8ef8 3c267e520862 – TodayHeadline

Terraform Labs co-founder Do Kwon reportedly arrested in Montenegro

PopularStories

retrofit – TodayHeadline
Technology News

Survey says: L.A. ❤️ earthquake retrofitting

IMG 4417 copy – TodayHeadline
Automotive

2024 GMC Hummer EV SUV First Drive Review: Still impressive, even out of its element

Gekas Ullared The department store in Sweden so big its – TodayHeadline
Travel

Gekas Ullared: The department store in Sweden so big it’s now the country’s No.1 tourist attraction

fd3f2066 70ac 4623 8ef8 3c267e520862 – TodayHeadline
Money

Terraform Labs co-founder Do Kwon reportedly arrested in Montenegro

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

retrofit – TodayHeadline

Survey says: L.A. ❤️ earthquake retrofitting

IMG 4417 copy – TodayHeadline

2024 GMC Hummer EV SUV First Drive Review: Still impressive, even out of its element

Gekas Ullared The department store in Sweden so big its – TodayHeadline

Gekas Ullared: The department store in Sweden so big it’s now the country’s No.1 tourist attraction

retrofit – TodayHeadline

Survey says: L.A. ❤️ earthquake retrofitting

IMG 4417 copy – TodayHeadline

2024 GMC Hummer EV SUV First Drive Review: Still impressive, even out of its element

Gekas Ullared The department store in Sweden so big its – TodayHeadline

Gekas Ullared: The department store in Sweden so big it’s now the country’s No.1 tourist attraction

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

No Result
View All Result
  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.