In 2023/24, households in the top decile in the United Kingdom paid, on average, 48,189 British pounds in income tax, compared with the lowest income decile which paid around 1,783 pounds per year.

The Corporate Tax Rate in the United Kingdom stands at 25 percent. This dataset provides - United Kingdom Corporate Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

United Kingdom UK: Total Tax Rate: % of Profit data was reported at 30.700 % in 2017. This records a decrease from the previous number of 30.900 % for 2016. United Kingdom UK: Total Tax Rate: % of Profit data is updated yearly, averaging 34.600 % from Dec 2005 (Median) to 2017, with 13 observations. The data reached an all-time high of 36.200 % in 2011 and a record low of 30.700 % in 2017. United Kingdom UK: Total Tax Rate: % of Profit data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Company Statistics. Total tax rate measures the amount of taxes and mandatory contributions payable by businesses after accounting for allowable deductions and exemptions as a share of commercial profits. Taxes withheld (such as personal income tax) or collected and remitted to tax authorities (such as value added taxes, sales taxes or goods and service taxes) are excluded.; ; World Bank, Doing Business project (http://www.doingbusiness.org/).; Unweighted average; Data are presented for the survey year instead of publication year.

The Personal Income Tax Rate in the United Kingdom stands at 45 percent. This dataset provides - United Kingdom Personal Income Tax Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Main tables from the Effects of taxes and benefits on household income publication from 1977, including average incomes, taxes and benefits and household characteristics of all, retired and non-retired households in the UK by quintile and decile groups.

The Sales Tax Rate in the United Kingdom stands at 20 percent. This dataset provides - United Kingdom Sales Tax Rate | VAT - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2022/23 approximately *****million taxpayers in the United Kingdom earned between 20,000 and 29,999 British pounds in this tax year, the most of any income level, while approximately *******taxpayers in the UK earned over one million pounds.

One of the major challenges of empirical tax research is the identification and calculation of appropriate tax data. While there is consensus that average marginal tax rates are most suitable for studying the effects of tax policy on economic growth, because of data limitations the calculation of marginal tax rates has been limited to the USA and the UK. This paper provides calculations of average marginal tax rates for the four Scandinavian countries using the methodologies of Seater (1982, 1985) and Barro and Sahasakul (1983, 1986). Then, by pooling the newly calculated tax rates for the Scandinavian countries with the data for the USA and the UK, we investigate the effects of tax policy shocks on the per capita GDP growth rate. Our results suggest that an increase in average marginal tax rates has a negative impact on economic growth. Employing additive mixed panel models with penalized splines as estimation approach, we show that changes in tax rates have nonlinear effects. Increasing average marginal tax rates turn out to be the most distorting at relatively moderate tax rates.

Key information about United Kingdom Tax Revenue

• UK Tax Revenue was reported at 256.268 USD bn in Dec 2024.
• This is a decrease from the previous figure of 266.877 USD bn for Sep 2024.
• UK Tax Revenue data is updated quarterly, averaging 68.866 USD bn from Mar 1957 to Dec 2024, with 272 observations.
• The data reached an all-time high of 293.309 USD bn in Mar 2024 and a record low of 3.111 USD bn in Jun 1957.
• UK Tax Revenue data remains active status in CEIC and is reported by CEIC Data.
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Tax Revenue: USD: Quarterly.

In the United Kingdom, tax revenue as a share of GDP, sometimes called the national tax burden was 35.3 percent in 2024/25, up from just 28.4 percent in 1993/94.

The Social Security Rate in the United Kingdom stands at 23.80 percent. This dataset provides - United Kingdom Social Security Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Tax Preparation Software Developers industry's revenue is supported by the fact that tax returns are required to be submitted every year, making revenue less susceptible to any economic downturns. The HMRC's Making Tax Digital (MTD) policy has catalysed the industry's revenue growth by mandating transitions from paper-based to digital filing systems. The extension of MTD for VAT to all VAT-registered businesses by April 2022 expanded the market significantly, compelling developers like Intuit and Sage to integrate MTD functionalities into their platforms. This shift not only increased subscription revenue but also solidified market confidence in digital solutions as both individuals and businesses sought cost-effective, reliable alternatives to traditional accounting services. Industry revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2024-25 to reach £200.1 million. The provision of online software has greatly boosted industry revenue, as it helps developers reach a wider audience and makes the sale of software cheaper and more convenient. Economic factors, like the cost-of-living crisis, have influenced consumer behaviour, with many turning to digital platforms for their tax preparation needs to save costs over the three years through 2024-25. Moreover, lower consumer and business confidence constrained spending, heightening demand for industry software, as some uncertain consumers and businesses prefer to file tax returns themselves using cheaper software instead of acquiring tax consultants' services. Revenue is set to climb by 5.1% in 2024-25, supported by strong uptake of online software and a higher number of UK businesses. The average industry profit margin is forecast to heighten over the five years through 2024-25, supported by the provision of software online, which has reduced costs and supported sales growth. Industry revenue is forecast to strengthen at a compound annual rate of 5.6% over the five years through 2029-30 to reach £262.9 million, with amended MTD requirements and the popularity of online software expected to boost demand. The government's commitment to digital tax administration, with MTD extensions for Income Tax Self Assessment set for 2026, promises to expand the market further. Developers that align with these legislative changes and innovate accordingly are poised to capitalise on new opportunities. The industry's progression towards cloud-based solutions, like Sage's successful integration of AI technologies, underscores the competitive edge that advanced digital solutions offer. However, the industry faces challenges, primarily a skilled workforce shortage. Developers must invest in upskilling and reskilling initiatives to maintain their competitive edge. Strategic measures, coupled with emerging technologies, will be vital for sustaining growth in the complex landscape tax preparation software developers navigate.

The Tax Preparation Software Developers industry's revenue is supported by the fact that tax returns are required to be submitted every year, making revenue less susceptible to any economic downturns. The HMRC's Making Tax Digital (MTD) policy has catalysed the industry's revenue growth by mandating transitions from paper-based to digital filing systems. The extension of MTD for VAT to all VAT-registered businesses by April 2022 expanded the market significantly, compelling developers like Intuit and Sage to integrate MTD functionalities into their platforms. This shift not only increased subscription revenue but also solidified market confidence in digital solutions as both individuals and businesses sought cost-effective, reliable alternatives to traditional accounting services. Industry revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2024-25 to reach £200.1 million. The provision of online software has greatly boosted industry revenue, as it helps developers reach a wider audience and makes the sale of software cheaper and more convenient. Economic factors, like the cost-of-living crisis, have influenced consumer behaviour, with many turning to digital platforms for their tax preparation needs to save costs over the three years through 2024-25. Moreover, lower consumer and business confidence constrained spending, heightening demand for industry software, as some uncertain consumers and businesses prefer to file tax returns themselves using cheaper software instead of acquiring tax consultants' services. Revenue is set to climb by 5.1% in 2024-25, supported by strong uptake of online software and a higher number of UK businesses. The average industry profit margin is forecast to heighten over the five years through 2024-25, supported by the provision of software online, which has reduced costs and supported sales growth. Industry revenue is forecast to strengthen at a compound annual rate of 5.6% over the five years through 2029-30 to reach £262.9 million, with amended MTD requirements and the popularity of online software expected to boost demand. The government's commitment to digital tax administration, with MTD extensions for Income Tax Self Assessment set for 2026, promises to expand the market further. Developers that align with these legislative changes and innovate accordingly are poised to capitalise on new opportunities. The industry's progression towards cloud-based solutions, like Sage's successful integration of AI technologies, underscores the competitive edge that advanced digital solutions offer. However, the industry faces challenges, primarily a skilled workforce shortage. Developers must invest in upskilling and reskilling initiatives to maintain their competitive edge. Strategic measures, coupled with emerging technologies, will be vital for sustaining growth in the complex landscape tax preparation software developers navigate.

Taking five Anglo-Saxon countries that have relatively similar backgrounds and tax systems – Australia, Canada, New Zealand, the UK, and the US – we see that the shares of the very richest exhibit a strikingly similar pattern, falling in the three decades after World War II, before rising sharply from the mid-1970s onwards. The share of the top 1 percent is highly correlated across Anglo-Saxon countries, more so than with the share of the next 4 percent. Controlling for country and year fixed effects, we find that a reduction in the marginal tax rate on wage income is associated with an increase in the share of the top percentile group. Likewise, a fall in the marginal tax rate on investment income (based on a lagged moving average) is associated with a rise in the share of the top percentile group.

In 2024, the average annual full-time earnings for the top ten percent of earners in the United Kingdom was 72,150 British pounds, compared with 22,763 for the bottom ten percent of earners. As of this year, the average annual earnings for all full-time employees was 37,430 pounds, up from 34,963 pounds in the previous year. Strong wage growth continues in 2025 As of February 2025, wages in the UK were growing by approximately 5.9 percent compared with the previous year, with this falling to 5.6 percent if bonus pay is included. When adjusted for inflation, regular pay without bonuses grew by 2.1 percent, with overall pay including bonus pay rising by 1.9 percent. While UK wages have now outpaced inflation for almost two years, there was a long period between 2021 and 2023 when high inflation in the UK was rising faster than wages, one of the leading reasons behind a severe cost of living crisis at the time. UK's gender pay gap falls in 2024 For several years, the difference between average hourly earnings for men and women has been falling, with the UK's gender pay gap dropping to 13.1 percent in 2024, down from 27.5 percent in 1997. When examined by specific industry sectors, however, the discrepancy between male and female earnings can be much starker. In the financial services sector, for example, the gender pay gap was almost 30 percent, with professional, scientific and technical professions also having a relatively high gender pay gap rate of 20 percent.

In March 2025, the top one percent of earners in the United Kingdom received an average pay of over 16,000 British pounds per month, compared with the bottom ten percent of earners who earned around 800 pounds a month.