Tuesday, July 01, 2008

Taxable income in the UK

UK Income Tax statistics for 2004/2005 are listed here as cited by Leninushka here. Apparently around half of the total population paid Income Tax. Of these 45% earned less than a "disqualified" rate of £15000 for a year working full time. 39% acheived a "middle class" salary of £20000 per year or more. 16% sold some form of qualified labour without being especially well rewarded for it or worked excessive hours. These conclusions would be suggested if we imported Joe Bain's idea that the outcome in a particular market reflects the structure of competition within it. Statisticians might pick at a few things here: there's no distinction relating to hours worked and there's an incentive to minimise the figure one gives on a tax return, but that's what's in the books.

"Data from HMRC 2004/2005; incomes are before tax for individuals. The personal allowance or income tax threshold was £4745 (people with incomes below this level do not pay tax). The mean income was £22,800 per year with the average Briton paying £4060 in tax"


Earnings Less Than £ Number of Taxpayers (000s) Percentage
6000 1440 4.76
7000 1160 3.83
8000 1590 5.25
10000 2950 9.75
12000 2760 9.12
15000 3650 12.06
20000 4950 16.36
30000 6000 19.83
50000 4090 13.51
70000 859 2.84
100000 410 1.35
200000 300 0.99
500000 89 0.29
1000000 16 0.05
Total30264 100

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