A new report has found workers in England on average, will pay up to 25% of their salaries into taxes over the next tax year.
The Year In Tax Report, compiled by pension advisors Almond Financial, took a deep dive into the taxes we pay in our everyday lives, some of which you might not be aware of.
The report analysed regional salary data to calculate income tax and National Insurance paid by the average worker in England, while also taking into account VAT on household utilities such as energy, food shopping, broadband, mobile phone plans, council tax and even the taxes paid to run a car.
With the government set to benefit from a £40bn ($49bn) tax boost by 2028 due to frozen income tax allowances and thresholds, higher-rate taxpayers will pay £3,700 more per year in tax.
Topping the list of cities where workers will pay the most tax is London. Despite having one of the lowest average council tax bills, the average worker will face an annual tax bill of £11,872.
Milton Keynes finished just behind London in second, with workers paying up to £9,836 in tax over the course of a year, with Readind also finishing in the top three with a tax bill of just under £9,700 per year.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAs the only Yorkshire city in the top 10 cities, workers in Leeds are set to pay over £8,800 in tax over the next year with the average person paying up to £830 in council tax alone.
Year In Tax Report
| City / Town | Income Tax & NI | Average Council Tax paid | VAT (Energy) | Total Tax (Car) | VAT (Food) | VAT (Mobile Phone) | VAT (WIFI) | Total |
| London | £10,118.40 | £603.11 | £95.00 | £561.00 | £464.60 | £38.11 | £39.36 | £11,872.08 |
| Milton Keynes | £7,752.32 | £947.84 | £96.50 | £561.00 | £464.60 | £27.00 | £35.40 | £9,836.41 |
| Reading | £7,503.68 | £1,052.07 | £96.50 | £561.00 | £464.60 | £27.43 | £33.10 | £9,690.13 |
| Southend-on-Sea | £7,309.44 | £882.99 | £94.50 | £561.00 | £464.60 | £28.80 | £32.10 | £9,326.18 |
| Northampton | £7,017.60 | £900.66 | £94.00 | £561.00 | £464.60 | £30.60 | £35.60 | £9,057.07 |
| Swindon | £6,909.12 | £948.63 | £98.00 | £561.00 | £464.60 | £27.84 | £40.00 | £9,000.18 |
| Leeds | £6,862.40 | £830.36 | £95.00 | £561.00 | £464.60 | £29.71 | £36.70 | £8,832.26 |
| Brighton and Hove | £6,429.12 | £1,002.19 | £96.50 | £561.00 | £464.60 | £27.41 | £36.85 | £8,569.42 |
| Newcastle upon Tyne | £6,549.44 | £859.77 | £95.50 | £561.00 | £464.60 | £27.43 | £37.20 | £8,547.19 |
| Bristol | £6,293.76 | £987.68 | £98.00 | £561.00 | £464.60 | £31.68 | £41.10 | £8,428.82 |
(All figures are based on one person paying their share of bills in an average UK household of 2.3 people)
Commenting on the research, Almond Financial principal financial advisor, Sam Robinson, said: “Most of us wouldn’t think twice about how much tax is in every product or service we pay for, but this data is an interesting insight into how hard tax can hit our pockets.
“With tax being embedded in everything we buy, it is evident that our salaries are becoming increasingly stretched.
“As we continue to battle a cost of living crisis, these figures will provide uncomfortable reading for many. For those approaching state pension age, this will provide a stark reminder that in order to live a comfortable life in retirement, it’s important to plan for retirement effectively and start putting plans into place sooner rather than later.”
