Note: Schedules include the impact of the withdrawal of the tax-free personal allowance at a rate of 50p for each £1 by which taxable income exceeds £100,000. ‘Child’ lines show the impact of the high-income child benefit charge (HICBC) for a parent in receipt of child benefit for one, two or three children. The HICBC imposes a tax charge equal to 1% of the total child benefit received for every £100 that taxable income exceeds £50,000. Figures assume that the taxed individual does not have a partner whose income exceeds their own.
Source: IFS Fiscal Facts, available here.
Income tax is the single most important source of revenue for the UK Treasury, accounting for about a quarter of total tax revenue.
Lower headline tax rates on self-employment than on employment aren’t justified by differences in benefits or employment rights, and are poorly targeted at improving investment incentives.