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Are we paying too much tax?

Are we paying too much tax? You could always move to Bulgaria.

 

The media storm over the New Year surrounding the supposed deluge of Romanian and Bulgarian immigrants got me thinking about life in the UK. As you’d expect from an accountant currently submerged in helping clients with their Self Assessment returns, my thoughts turned to taxation.

 

How do we in the UK compare to others around the world? Whilst the new top rate for higher earners in France has received a lot of publicity, what is the situation in other countries?

 

KPMG have produced a handy guide that provides a view of global individual income tax rates between 2006 and 2013 from many countries- even some you’ve never heard of. St Maarten anyone?

 

According to KPMG, the EU average individual income tax rate is 37.85%. In the UK and Germany, it's 45%, whilst in Bulgaria, it's just 10% and in Romania it’s 16%.

 

The Scandinavian countries are all considerably higher than the UK, with Denmark at 55.56%, Sweden at 56.6% and Finland 51.13%.

 

The highest rate on the list isn't in Scandinavia or even Europe at all. That accolade goes to Aruba, a tiny island in the south Caribbean Sea off the Venezuelan coast with a massive 58.95%.

 

So, all in all, the grass isn't always greener - at least where tax is concerned.

 

Need help with your tax return? Call us now on 01628 631 056 or email our senior tax advisor Joy on joyc@knightandcompany.co.uk