How much tax the average worker will pay to HMRC over course of entire career | Personal Finance | Finance

The average Brit will pay nearly £220,000 in income tax over their working lifetime, new research shows.

Research from Tax Bite suggests someone earning an average of £35,448,40 for each year of their working life will pay £219,632.64.

The data also shows that workers in Scotland will pay slightly more overall, totalling £222,791.52 over the average working lifetime of 48 years (18 – 66 years of age).

The estimated annual income tax in England is £4,575.68 but totals £4,641.49 in Scotland due to the higher tax rates across the Scottish tax bands.

The average annual salary is consistent across England and Scotland.

Kasra Dash, Director at Tax Bite comments on the findings: “This analysis sheds light on the substantial impact of income tax on individuals over their working lifetimes.

“The findings highlight the differences in income tax contributions between England and Scotland, stemming from variations in tax banding and rates. While both regions share similarities in median gross weekly earnings and average annual salaries, disparities in income tax arise due to the differing tax structures.

“Of particular interest are the disparities in tax burdens across industries. Industries such as Electricity, gas, steam, and air conditioning supply and Financial and insurance activities stand out as significant contributors to income tax revenues, reflecting the higher earnings within these sectors.

“At the other end of the data, industries like Accommodation and Food Service demonstrate lower average lifetime tax contributions, underlining the varying economic dynamics across sectors.
“The disparity in income tax burdens between England and Scotland, particularly evident across certain industries and tax brackets, underlines the need for a re-evaluation of tax policies to foster greater fairness and equity.

“While variations in tax rates and structures are expected due to regional differences in economic dynamics and governance, the magnitude of the differences observed suggests an opportunity for reform.”

Workers in the Electricity, Gas, Steam and Air conditioning supply industry are estimated to pay the most income tax over their lifetime at £366,873.60.

Workers in the Accommodation and Food Service activities industry are estimated to pay the least income tax over their lifetime at £124,339.20.

Scots working in the Electricity, Gas, Steam and Air conditioning supply industry pay on average £77,000 more income tax than Brits working in the industry.

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