Which towns pay the highest amount of income tax in the UK?

22nd July 2014


While the typical worker pays an average of almost £5,000 in income tax new research shows that inhabitants of the ‘Beverly Hills of Britain’ can fork out up to three times more.

According to a survey from chartered accountants UHY Hacker Young, 28 out of the top 30 UK areas paying the highest average income tax bills are leafy “stockbroker belt” towns in the South East, within commuting distance of London.

The population of such areas are generally typified by a large proportion of high-earning residents working in financial services, law and accountancy.

While the typical annual income tax bill in the UK is £4,985,  taxpayers in the top 30 regions areas pay almost double that, at £9,463 in income tax each year. However residents of the Surrey district of Elmbridge, which covers the prosperous towns of Esher, Weybridge and Walton-on-Thames, are paying the highest average income tax per taxpayer.

In fact taxpayers in Elmbridge, dubbed the ‘Beverly Hills of Britain’, whose residents include tennis star Andy Murray and Sir Elton John, pay an average of £16,600 in income tax each year, a 3.1% rise on the average of £16,100 paid a year earlier – and nearly double what Londoners pay.

The rest of the top five areas which pay the highest average amounts are South Buckinghamshire, Chiltern, Sevenoaks in Kent and Waverley.

Mark Giddens, head of private client services at UHY Hacker Young said: “The Government is increasingly reliant on the wealthiest parts of the South Eastern commuter belt and London for income.”

“The Government has gradually increased the tax burden on high earners since the credit crunch. Higher taxation of wealthy individuals in the South East has proven to be an effective means to boost tax receipts, but these numbers will not make for pleasant reading for those affected.”

“The huge income tax payments from households in the Elmbridge area indicate the desirability of the area among the super-rich. With many sports and entertainment stars living in the area, both income and the resulting tax bills from HMRC are sky-high and increasing.”

At the other end of the table, Blackpool residents make the lowest average income tax payments in the UK, with payments of £2,290 a year, a decrease of 4.6% from £2,400 a year ago.

Top 30 towns with the highest average income tax bills per tax payer

Source: UHY Hacker Young

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