Borough taxed up
April 27, 2009 10:21 AM
In The Royal Borough Observer On-line
In The Royal Borough Observer On-line
TAXPAYERS in the Royal Borough are paying twice as much income tax then the national average according to a new survey.
Accountancy firm UHY Hacker Young compiled the data which reveals borough residents are being hit by a 'stealth tax' due to the Government's failure to increase the income tax bands in line with inflation.
The table places the borough as the second highest area for the average income tax and highest income of all the top 100 UK towns and cities.
According to the statistics provided to the firm's experts by HM Revenue and Customs, residents paid an average of £10,100 per taxpayer in the last tax year, which is more than double the UK average income tax contribution of £4,333.
Residents each earn an average of £42,100 whilst the UK average income is £24,292.
The firm found that the average UK income rose 15.2 per cent over the last four years, while the average income tax increased by 19.6 per cent.
Rob Durrant-Walker, Tax Manager at the firm's York office, said: "The Government's failure to move the higher rate income tax band in line with wage growth over the last four years has acted as a stealth tax. The result has been that taxpayers have seen the income tax they pay increase more than their actual incomes."
Above the borough in the table was St Albans' where taxpayers paid the most with an average of £10,500 and had the highest income of £43,500.
Slough was 47th in the table, where taxpayers pay £3,580 income tax and the average income is £22,200.
The data is based on tax payments completed in 2008.