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Payroll taxes in UK

The United Kingdom has a progressive income tax scale of 0 to 45%. By analogy with the minimum wage, the rates are revised every year on April 1st. The amount of income that is not taxable is 12,570 pounds per year. This provision does not apply to annual earnings in excess of £ 123,000.

Income tax in England (UK) in 2022

Annual income (pounds)
Tax Rate (%)
Up to 12,570
12,571 to 50,270
50,271 to 150,000
More than 150,001

In UK, there is an effective system of social benefits and benefits that allow you to partially offset the paid taxes on wages.

The UK tax system

The UK tax system — great and terrible, complex and flexible at the same time, unlike any other — has two main pillars. This is the distribution of government levels and types of payers depending on their place of permanent residence. Traditionally, it is believed that taxes in the United Kingdom are high, but the system is built in such a way that in a large number of cases it is possible to reduce the rate or the taxable base - for example, by registering the property with a company in order to pay less when renting out and avoid inheritance fees.

Individual taxes

Individuals or employers pay taxes in the UK on a progressive basis — on direct income / wages, on real estate and other property (for example, by renting it out). The main types of receipt of funds that are subject to taxation:

  • Funds from entrepreneurial activities;
  • Pensions and unemployment benefits;
  • Interest from bank investments;
  • Dividends and so on.

Income in UK

The leading position in terms of earnings in 2022 belongs to doctors, lawyers and financial workers who have reached a high professional level. Their average annual income is £ 60,000. If you have your own business, this figure grows significantly. Teachers' salaries in England were around 30,000.

Running your own business is a great option. In this case, even for not very high-income specialists, like a plumber or a taxi driver, earnings will reach the level of lawyers and doctors working for the state. The average salary for office workers per year reaches 22,000. That is, they receive up to 1,400 pounds a month. For example, a 30-year-old qualified professional with a higher education successfully gets a job in England in his profession.

If this is London, then the earnings will be about 32,000 without tax deductions, of which 2,000 pounds sterling monthly will turn out to be clean on hand.

Further it will be possible to look at the level of salaries in England in 2021 by specialty. It should be borne in mind that these figures are average and much depends on the manager, the employee's abilities and education. And a person who has received higher education at a UK university will initially receive more then others.

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