Strategies for a high tax environment
Tax burdens change as you earn more
The income tax system has changed significantly in recent years. Governmentshave focused on increasing the personal allowance, but despite this the number of income tax payers today is much the same as in 2010/11. At the same time the share of income tax paid by those with higher incomes has increased: the share of total income tax receipts paid by the top 25% of taxpayers has risen from 71.3% in 2010/11 to 75.6% in 2018/19.
The figures reflect a truth often felt by some – that the tax burden increases as you start to earn more. This guide looks at ways to mitigate a high-tax environment.
The concentration of income tax among high earners has occurred gradually through smaller changes. It has been, to quote Louis XIV’s finance supremo, Jean-Baptiste Colbert, a process of “plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.”