As the news of tax rises in the UK has caused anger among the working population, it turns out that the UK worker is not one of the biggest taxpayers in Europe, with a number of other countries paying higher rates. While Income Tax has not been raised by the Chancellor despite the coronavirus crisis, National Insurance has been increased by 1.25 percentage points beginning in April 2022.
Income tax is the tax you pay on your earnings, but UK taxpayers get a Personal Allowance of tax free income, set as £12,570 for this financial year.
Income tax is sorted into three bands in the UK – basic rate, higher rate, and additional rate.
Those who earn £12,571 to £50,270 pay an income tax rate of 20 percent, whereas those earning £50,271 to £150,000 pay 40 percent.
Those on the additional rate, who earn more than £150,00 per year, pay a tax rate of 45 percent on their earnings.
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Some countries pay considerably lower than the UK and other large economies like Germany.
In the Czech Republic, the top rate of personal income tax is as low as 15 percent, as do Hungarians.
However, in the Czech Republic and Hungary, this is applicable to all workers no matter how much they earn, as it is a flat tax rate.
Similarly, Estonians only have to pay as high as 20 percent – some 25 percentage points less than the British.
But you only have to be earning €6,097 to pay the proportional flat tax rate in this Northern European country.
Mid rankers include Slovakia, which has a personal income rate of 25 percent, and Poland, which has a top rate of 32 percent.
Published at Sun, 19 Sep 2021 06:00:00 +0000
This story originally posted here