Bankers and insurance brokers face a bigger income tax burden than ever before, accounting for more of the Governments largest source of tax revenue than any other industry.
This is according to annual statistics published by HM Revenue & Customs (HMRC) on the distribution by industry of tax deducted from the pay cheques of employees each year.
The largest contribution in income tax by a considerable margin is the finance and insurance industry making up over 17 per cent of the total amount HMRC collected during the 2016/17 tax year, which is a record high, up 0.5 per cent on the amount taken in 2015/16.
Second on the list is the science, mathematics, technology and engineering industry. This area has increased by a fifth over the past five years, now accounting for 12.2 per cent of the Revenue’s income tax pot, making it the fastest growing contributor of income tax.
Car repairs accounted for the third largest share of tax contributions, accounting for 10.4 per cent of all contributions with manufacturing, followed by health and social work, rounding out the top five.
The least amount of income tax paid came from the agriculture, forestry and fishing industries accounting for just 0.3 per cent.
Workers pay tax on incomes over the personal allowance, which for the current tax year, is £11,850. This is one of the reasons why lower-paid work such as agriculture and mining is a small contributor to the total income tax pot.
Those in high paying fields such as banking and technology have to give away more of their earnings because of the 40 per cent tax rate which is applied to incomes above £46,351.
These figures do not include money taken for National Insurance, as this is a separate tax on earnings paid by both employees and employers which stops once an employee reaches the state pension age.
Smailes Goldie Group
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