Rishi Sunak may have to break income tax promise says expert
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Income Tax in the UK is collected by HM Revenue and Customs (HMRC) on a fairly regular basis. Britons will pay tax on things like money earned from employment, some state benefits, and more recently certain Government grants such as SEISS or furlough. However, new research has revealed how the UK stacks up against its European counterparts when it comes to taxation.
A study conducted by salary calculator Income Tax UK has shown that while the UK lets Britons take home a significant amount of pay – it is beaten out by a number of other nations.
The investigation analysed how much someone earning £2,580 per month would be taxed across 33 European countries plus the UK.
Ultimately, it was Bulgaria who came out on top of the low tax pile for its citizens.
The Balkan nation had an impressive £2,313 in take-home pay, meaning it only took tax worth £266.32.
Income Tax mapped: How the UK stacks up against countries across Europe (Image: Getty•EXPRESS)
Poland followed as a close second in the low tax league table, as it allows taxpayers to keep 86.3 percent of an average £2,580 monthly wage.
Ireland rounded out the top three, where workers can take home £2,120 at the end of the month.
The UK ended up ranking as the eighth lowest tax taker when it came to analysis of the 34 countries within this study.
It currently leaves Britons with £2,058 to spend from a £2,580 per month wage.
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An Income Tax UK spokesperson said: “It’s very interesting to see the tax differences across Europe for an average monthly salary.
“As we shift to a more remote working culture, those with the ability to work from anywhere also have the opportunity to maximise their income.
“Romania and Bulgaria border each other, yet the difference in salary after tax is more than £800.”
At the other end of the spectrum, however, there are countries who are more happy to slap on the tax.
Income Tax: Differences across Europe are palpable (Image: EXPRESS•Income Tax UK)
Lithuania is the most tax-keen country in Europe, taking a hefty £1,073.28 out of a person’s £2,580 monthly wage.
Romania, Portugal and Slovenia followed closely behind in the table, all taking near to £1,000 or more from workers each month.
And sitting right in the middle of the tax table is Germany, which is considered to be the “economic powerhouse” of Europe.
A German taxpayer would have £1,926 remaining from their £2,580 payout after deductions are made in Income Tax.
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In the UK, how much Income Tax a person pays in each tax year is dependent on a number of factors.
- How much of a person’s income is above their Personal Allowance
- How much of a person’s income falls within each tax band
At present, the standard Personal Allowance is £12,570 – the amount of income a person does not have to pay tax on.
However, it is worth noting this allowance may be bigger if someone claims Marriage Allowance or Blind Person’s Allowance.
It will be smaller for those with an income of over £100,000.