News
Contractors taxed more in the UK than most other countries
17 March, 2011
According to a report by the Adam Smith Institute, UK contractors are working in one of the highest taxed countries in the world.
The report shows that HMRC estimates that the top 1% of UK taxpayers, which includes many contractors, will contribute over 25% of income tax receipts in 2010-2011. It shows evidence that increasing taxes to such levels actually results in reducing tax revenues, and warns that the introduction of the 50% top rate of tax acts as a “tipping point” for many high earners to take legal tax avoidance action.
The report says that this could lead to the UK facing 10 years of flat growth and a loss of £350bn in unrealised tax revenues to the Exchequer, unless measures are taken to reduce personal taxes and repeal the top rate of tax.
The full report shows evidence from all the major developed economies, as well as examples from the UK’s tax history.
Limited Company accounting fees for only £118 per month. We do your paperwork, you focus on running your business. Find out more, or contact us today.