Fact Service (April 2012)

Issue 16

Tax is for little people

Britain’s tax-dodging millionaires were officially exposed when new Treasury figures revealed that many are paying a lower rate of income tax than many low-waged cleaners.

The figures, which come as no surprise to tax justice campaigners, show almost one in 10 people earning more than £10 million a year are paying less than the 20% basic rate of income tax.

The Treasury figures also showed that 6% of £10 million-plus earners paid less than 10% in tax and another 3% came in below the basic rate. Fewer than three-quarters (72%) paid more than the higher rate of 40%.

A Treasury spokesperson admitted: “There are currently millionaires paying a lower tax rate than ordinary taxpayers.”

The figures relate to the 575,600 individuals in the UK who earn at least £100,000, with 10,600 of these each earning more than £1 million.

TUC general secretary Brendan Barber said: "These are truly shocking figures. For too many of Britain’s super-rich, tax is something for the little people.

"Unfortunately the government is making the mistake of trying to deal with tax reform in a piecemeal way — one day rewarding the very wealthy with a cut in their tax rate, the next trying to unpick their allowances that benefit charitable institutions."

www.morningstaronline.co.uk/news/content/view/full/117919

www.tuc.org.uk/economy/tuc-20910-f0.cfm


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