Following the publishing of the results of the survey, it has been revealed that forty-two of the fifty cities involved, saw a rise in the proportion paid in tax, with York seeing the biggest rise – thirty one percent.
At the other end of the scale, Salisbury, Durham and Peterborough were among a handful of cities involved in the survey where the proportion of tax taken fell as income rose.
One of the reasons cited for the slow rise in income tax levels was the increase in people’s personal allowance, which is the amount of money they are allowed to keep before they start paying income tax; with the personal allowance rising between 2007 and 2010 from £5,035 to £6,475.
A spokesperson behind the survey, said of the results: “For the vast majority of taxpayers the effective tax rate fell during the financial crisis.
“The tax bill for someone on a static income of £20,000 will have decreased by about eleven percent over the last three years. Of course, that doesn't reflect the increase in VAT and other indirect taxes.”
They added: “These statistics also show survivor bias of the recession, showing those still working, or self employed or pensioners who are earning enough to pay tax.”
For more information, please visit www.milsted-langdon.co.uk
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