High and low earners in the UK pay some of the highest tax rates in the world, according to new research.
A study by accountants UHY found that people earning less than £15,242 a year were being taxed at the seventh highest rate out of 19 countries as were those earning more than £121,900 per annum.
It found those in the UK earning £15,242 or less a year got to keep just 83.2% of their income.
In comparison, workers earning the same in Japan and the US got to keep around 90%, those in Ireland 95.7% and Dubai all of their earnings.
Meanwhile high earners in the UK take home only 60.9% of their pay once they have paid tax, considerably less than the 87% they would keep in Russia and the 80.4% they would retain in Egypt, while Dubai is tax-free.
Mark Giddens, private client partner of UHY Hacker Young in the UK, said: “The 50% tax rate on people earning more than £150,000 a year, combined with increases in national insurance, has undoubtedly made the UK less attractive to high earners. Many of these people will be highly skilled and they are usually very mobile.”
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