You know everyone says the UK is a low tax country?

There\’s two bits to a tax.

The rate at which it\’s levied, the marginal rate, and the amount at which that rate is levied.

Some expatriates, who are considered residents, also pay a wealth tax as well as income tax which reaches 41 per cent for those earning over £62,000.

In the UK the higher rate kicks in at £42k or so (£35 k plus personal allowance of £7k ish).

Roughly speaking (and from memory to boot) that would make that 40% tax rate apply to the top decile in the UK and the top ventile in France.

It\’s difficult to see from this that the UK really is a low tax country.

4 thoughts on “You know everyone says the UK is a low tax country?”

  1. Don’t forget that VAT is charged on labour outside the food industry. So that’s 20% on top of income tax, employee’s NI and employer’s NI. Yes, you pay VAT on the tax you paid too.

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