Who pays taxes? (Distributional effects)

The tax penalty on employment

Taxlab Data Item

Are preferential tax rates for the self-employed justified?

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.

Taxlab Key Questions

Should income from business be taxed like income from employment?

There is a strong case to tax business income at the same rates as employment income – if the tax base is also reformed.

Taxlab Key Questions

Should tax be used to encourage entrepreneurship?

There are reasons to promote entrepreneurship, but low headline tax rates on income from business are poorly targeted at that goal.

Taxlab Key Questions

Taxation of private pensions explained

Private pensions are tax-favoured relative to most other forms of saving. The extent of the tax advantages varies between people.

Taxlab Taxes Explained

Concentration of corporation tax payments, 2018–19

Taxlab Data Item

Corporation tax explained

Corporation tax is the fourth biggest source of revenue for the UK Treasury and is forecast to raise around £40 billion in 2021–22.

Taxlab Taxes Explained

The distributional impact of National Insurance contributions

Taxlab Data Item

National Insurance contributions explained

National Insurance contributions (NICs) are the UK’s second-biggest tax, expected to raise almost £150 billion in 2021–22 – about 20% of all tax revenue.

Taxlab Taxes Explained

Contributions of different taxpayer groups (% of total income tax)

Taxlab Data Item

Concentration of income and income tax payments among taxpayers

Taxlab Data Item

Income tax rates and thresholds in Scotland, 2021–22

Taxlab Data Item