Will accountants leave the UK to escape high taxes?

Accountants in London might be interested to learn that UHY International thinks that UK high earners may leave the UK to escape the country’s high tax rate.

Britain ranks 7th in the list of tax rates for those earning in excess of £122,000, in the world’s major economies. In the UK, these high earners only take home 60.9% of their income compared to almost 70% in the USA, 87% in Russia and 100% in Dubai.

The UK also ranks 7th for the amount of tax it levies on those with a salary of less than £15,250 a year, behind Ireland, Spain and the USA.

John Wolfgang, the chairman of UHY International, explained that a lot of governments have had to face tough choices as they struggle with record deficits. It will be difficult to achieve fiscal sustainability without increasing income tax and many countries will find this a major political issue as they attempt to strike the balance between economic growth and fiscal responsibility.

UHY International researched the tax data of 19 countries in its international network and based its figures on single taxpayers without children.

It’s not the first time that it has been suggested that high taxation is driving people out of the UK. But since the Chancellor is keen on attracting foreign investors into the country, the government may want to sit up and take note that its policies could be having the opposite effect and driving people away.

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