Accredited official statistics

Personal Incomes Statistics 2020 to 2021: Commentary

Updated 29 February 2024

1. Introduction

About this publication

Statistics about personal incomes are assessed using the annual Survey of Personal Incomes (SPI). The survey is based on information held by HMRC on individuals who could be liable to UK Income Tax. It is carried out annually by HMRC and covers income assessable to tax for each tax year.

Most tables in this statistics release exclude individuals who are not taxpayers unless otherwise stated. This can occur for a number of reasons, for example if they have no Income Tax liability due to their deductions, reliefs and personal allowances exceeding their total income, or if their income is below the Personal Allowance. Figures cover the United Kingdom and tax year 2020 to 2021 unless stated otherwise. The SPI is compiled to provide information to the public, Members of Parliament, other Government Departments, companies, and organisations. It is a quantified evidence base from which to cost proposed changes to tax rates, personal allowances and other tax reliefs for Treasury Ministers. It is used to inform policy decisions within HMRC, the Treasury and the Devolved Administrations, as well as for tax modelling and forecasting purposes. In addition, it is used to provide summary information for the National Accounts that are prepared by the Office for National Statistics.

This year’s statistical release includes the effects of the COVID 19 pandemic and related Government support (through the Self Employment Income Support Scheme and Coronavirus Job Retention Scheme) on income and Income Tax liabilities. However, no additional tables or analysis have been included in this statistical release to assess the impact of pandemic. See the supporting documentation for more information on the COVID 19 schemes and the approach taken for this release.

Supporting documents to the SPI annual publication are:

1. accompanying statistical tables in Tables 3.1 to 3.11, 3.16 and 3.17 and the geography National Statistics tables 3.12 to 3.15a by tax year

2. summary statistics for Personal Incomes Statistics for the tax year 2020 to 2021

3. supporting documentation on the methodology used to produce these statistics is available Personal Incomes Statistics for the tax year 2020 to 2021

This publication was originally released in March 2023. Following a revision to the methodology for estimating contributions to relief at source pensions from the tax year 2021 to 2022, the release was updated and re-published in February 2024. For more information, please see the footnotes and commentary that accompanies Table 3.8, the Personal Income Statistics supporting documentation (for tax years 2020 to 2021 and 2021 to 2022) and the background quality report.

2. Table 3.1 and 3.1a - Percentile points for total income before and after tax, for tax year ending 1993 to tax year ending 2021

Individuals who are not taxpayers are not included in Table 3.1 and Table 3.1a.

Figure 1: Total income before tax at selected percentiles

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.1

The median income before tax has generally increased each year from the tax year ending 1993 to reach £26,300 in the tax year ending 2021, a 1% increase on the previous tax year median income of £26,000.

In addition, the income level of the 99th percentile increased from £62,800 in the tax year ending 1993 to £183,000 in the tax year ending 2021, a 2% increase on the previous tax year 99th percentile income of £180,000.

For those at the 1st percentile, income has increased over the same period, from £3,630 to £12,700. However, as the statistics include only taxpayers, at this end of the income distribution, the increase is largely a result of the increase in the Personal Allowance for Income Tax which increased from £3,445 to £12,500 over the same period and has remained the same as the previous tax year.

Figure 2: Percentile points of total income before tax for the last three tax years

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.1 and Table 3.1a

Figure 2 shows that in the tax year 2020 to 2021, 10% of taxpayers had an income before tax of less than £15,100. At the upper end of the distribution, 10% of taxpayers had an income before tax of more than £59,200.

3. Table 2 - Distribution of median and mean income and tax, by age range and sex, tax year 2020 to 2021

The data presented in Table 3.2 relates to total income for the tax year and comprises of employment, profit and pension income plus property, interest, dividend and other income. The survey has no information on hours worked and alternative working patterns, for example, part-time working.

Figure 3: Number of taxpayers and median income before tax by age and sex

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.2

Figure 3 shows that there were more male than female taxpayers in every age range and males had higher median income throughout. The number of taxpayers peaks at the 30-34 age range for males (at 1.8 million) and at the 50-54 age range for females (at 1.4 million). The median income across all age groups was £28,700 for males and £23,600 for females. The highest median income was found in the 45-49 age range (£35,600) for males and in the 40-44 age range (£27,800) for females.

4. Table 3.3 - Distribution of total income before and after tax by sex, tax year 2020 to 2021

Table 3.3 provides estimates of taxpayer numbers, amounts of total income and of total tax liabilities by sex and range of total income (before and after tax).

Figure 4: Total income before tax and total tax by sex and range of income (lower limit)

Figure 5: Number of taxpayers (thousands) by sex and range of income

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.3

A relatively small number of taxpayers (4.7 million, 15%) have total income over £50,000 but these taxpayers account for a significant proportion of total income (£482 billion, 41%) and an even greater proportion of total tax (£130 billion, 67%). More information on percentile shares of total income and tax are given in Table 3.1

5. Table 3.4 - Income tax liabilities of “savers”, basic, higher and additional rate taxpayers, by largest source of income, tax year 2020 to 2021

Table 3.4 categorises taxpayers by their highest marginal rate of Income Tax, range of total income and largest source of income, showing the number of taxpayers and amount of tax. An individual’s marginal tax rate is the proportion of an extra pound of income that would be paid in Income Tax, which depends on their total taxable income and its composition.

This table can include individuals liable to tax at the additional rate but whose income is below the £150,000 threshold for additional rate due to the Pension Tax Charge, which occurs when a taxpayer makes contributions to their pension above the annual (or lifetime) threshold for tax relief.

Devolved Income Tax

Income Tax due on non-savings/non-dividend (NSND) income is devolved to Scotland and Wales. As different tax regimes apply to Scottish and Welsh taxpayers, compared to taxpayers in the rest of the UK, some individuals may be liable to a different marginal tax rate depending on where they are liable to Income Tax. More information is available in the supporting documentation.

From the tax year 2018 to 2019 the Scottish Government introduced new tax bands, rates and thresholds for the Scottish Rate of Income Tax (SRIT), diverging from the structure of the UK Government Income Tax system. The SRIT impacts the starter, basic, intermediate, higher and top rates of income tax.

In addition, from 5 April 2019, the Welsh Government controls the three Welsh Rate of Income Tax (WRIT), which combined with the UK Government rates sets the overall rate paid by Welsh taxpayers. The WRIT impacts the basic, higher and additional rates of income tax. The Welsh and rest of the UK (i.e. non-Scottish and non-Welsh) rates of income tax on NSND are also aligned in the 2020 to 2021 tax year. More detail is set out in the supporting documentation and associated statistics are set out in tables 3.16 and 3.17.

For table 3.4, individuals who are classed as Scottish taxpayers and have total taxable NSND income in the starter, basic or intermediate rates for Scottish taxpayers (but no total taxable income above the UK basic rate limit) are classified as a basic rate taxpayer within this publication, or as Income Tax payers below the higher rate. A Scottish Income Tax payer with only savings and/or dividend income within this band (and no total taxable income above the UK basic rate limit) is also classified as a basic rate Income Tax payer.

Individuals who are classed as Scottish taxpayers and have total taxable NSND income in the higher or additional rates (which have different rates to the rest of the UK) are grouped with the equivalent higher and additional rate taxpayers in all other regions. Any remaining cases with positive total taxable income lying at or below the UK government’s basic rate limit (or Scottish basic rate limit for Scottish Income Tax payers) are classified as either savers rate or basic rate Income Tax payers according to the composition of their total taxable income. Individuals with any taxable earnings (NSND income) are classified as basic rate Income Tax payers, while those with solely taxable dividends or taxable savings income exceeding the starting rate limit are classified as “savers” rate Income Tax payers. From the 2015 to 2016 tax year the savings rate below the starting rate limit for savings income was changed to zero and therefore individuals with savings income below the starting rate limit for savings are no longer Income Tax payers.

As the Welsh rates of Income Tax do not currently diverge from the UK Income Tax system, they are classified in line with taxpayers in the rest of the UK and resulting tax liability calculation is the same. Therefore, the tax bands that are applied to all taxpayers in this table are savers rates, basic, higher and additional rates. Please refer to the Income Tax liabilities statistics publication for further details of how the tax liability calculations are performed. A link to this publication can be found here: Income Tax Liabilities Statistics

From the tax year 2020 to 2021 the Personal Income statistics are compiled using the resulting tax liabilities on the basis of which tax regime individuals are liable to tax. Please see the supporting documentations for additional information.

Table 3.4 summary

Most taxpayers (26.6 million, 84%) are basic rate taxpayers and account for £66.2 billion (34%) of tax. Higher rate taxpayers (4.0 million, 13%) account for £64.9 billion (33%) of tax. Additional rate taxpayers (0.4 million, 1%) account for £63.7 billion (33%) of tax.

The number of additional rate taxpayers increased by 12,000 between the tax years 2019 to 2020 and 2020 to 2021 to 433,000. Income Tax liabilities of additional rate taxpayers increased by £2.8 billion to £63.7 billion. The increase was mainly driven by increases in employment income. The growth in the total income and tax liability due to additional rate taxpayers is also partly due to the additional rate threshold remaining unchanged at £150,000. Their share of total tax increased from 32% to 33%.

The number of higher rate taxpayers increased by 100,000 between the tax years 2019 to 2020 and 2020 to 2021 to 4.0 million with an increase of £2.5 billion of tax to £64.9 billion.

There was an increase in the overall number of taxpayers of 200,000 to 31.7 million.

Figure 6: Taxpayers by their largest source of income, percentages in each marginal rate band

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.4

Figure 6 shows that employment income is the largest source of income for taxpayers in the basic, higher and additional rates. For most taxpayers liable at the starting rate for savings income (or “savers” rate), income from the property, interest, dividend and other income category was their largest source.

Figure 7: Income tax from taxpayers by their largest source of income, percentages in each marginal rate band

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.4

Figure 7 shows that the proportion of tax from self-employment income was larger than average among additional rate taxpayers. Pension income accounted for a larger than average proportion of tax among basic rate taxpayers. At the starting rate for savings income (or “savers” rate), almost all of the tax came from those with property, interest, dividend and other income as their largest source of income.

6. Table 3.5 - Income and deductions, tax year 2020 to 2021

Table 3.5 shows, for ranges of total income, how total income comprises employment, profit and pension income plus property, interest, dividend and other income, the levels of deductions and reliefs and personal allowances set against that income, the Income Tax arising and the amount of income after tax. The table also shows the ratio of tax liabilities to total income as the average rate of tax, the share of total income in each income range and the percentage of total income that arises from (a) profit, employment and pension income, (b) property, interest, dividend and other income and (c) sheltered by deductions and reliefs.

Figure 8: Percentage of taxpayers with each income type by range of total income (lower limit) and percentage of income by type and deductions

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.5

Almost all taxpayers had some profit, employment and pension income in (a). The proportion of taxpayers with property, interest, dividend and other income increases as income rises, from 35% in the lowest income range to 86% for incomes above £1 million in (b). The proportion with deductions is relatively stable for income ranges above £20,000 (ranging from 50% to 57%) however decreases as income decreases for income ranges below £20,000, to 32% in the lowest income range in (c).

Employment, profit, and pension income, the largest component of total income, generally accounted for a decreasing share as total income increased in (a). Property, interest, dividend and other income generally accounted for a higher proportion of total income among the highest income ranges compared to the lower ranges in (b). The proportion of total income affected by deductions and reliefs was small, at 2.8% on average; 2.3% or less for incomes under £20,000 and 2.7% in the highest income range in (c).

From tax year ending 2011 the Personal Allowance is reduced by £1 for every £2 of taxable income over £100,000 until fully withdrawn. There are also some taxpayers who are not entitled to a Personal Allowance due to residence/ domicile rules or who choose not to receive it and are taxed on the remittance basis. Finally, the tax charge will include the liability arising from recovery of excess pension relief.

7. Table 3.6 - Profit, employment and pension income, tax year 2020 to 2021

Table 3.6 presents the (a) employment, (b) total profit (self-employment income), (c) state pension and (d) other pension income for taxpayers in each range of total income, the level, average amount and percentage share by type of income along with the percentage of total profit, employment and pension income in each total income range. This table does not include property, interest, dividend and other income. Note that as taxpayers can have more than one type of income in this table, the proportions in Figure 9 can sum to more than 100%.

Figure 9: Percentage of taxpayers and income, by type and range of total income (lower limit)

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.6

Figure 9 shows that in all income ranges taxpayers with employment, self employment profits and pension income are most likely to have employment income, ranging from 55% to 90% in (a). The proportion of taxpayers with self-employment income decreases as income rises for incomes under £70,000 but rises with the income for ranges above £70,000 to reach around 42% for incomes of £1 million and above in (b).

About 20% of taxpayers presented in Figure 9 have State pension income and 25% have other pension income in (c, d), with the numbers peaking at 37% and 41% respectively at the lowest income band and decreasing steadily as income increases. This highlights the position of state pensioners and others with pension income within the overall taxpayer income distribution (taxpayers in the lower income ranges are more likely to have pension income).

Employment income accounts for the largest share of income in each income range. Pensions (National Insurance / state pension and all other pensions) account for significant shares of the overall amount where total income is between £12,500 and £30,000. For total income above £1 million the self-employment share is at 38.5%. The self-employment share is at its lowest at around the £70,000 to £100,000 income level at 5.8%.

8. Table 3.7 - Property, interest, dividend and other income, tax year 2020 to 2021

Table 3.7 shows the types of income that comprise (a) property; (b) interest from banks and building societies; (c) dividend and (d) other income for taxpayers in each range of total income. It also shows the level, average amount and percentage share of each of these types of income by total income range.

The proportions can sum to more than 100% because taxpayers can have more than one type of income.

Figure 10 (a) shows that the proportion of individuals with property income is less than 19% in income ranges under £50,000. However, it rises with higher incomes to 31% for incomes above £1 million.

Figure 10 (b) shows that more than 66% of taxpayers across all income ranges with property, interest, dividend and other income have interest from building societies and banks.

Figure 10 (c) shows if someone’s income is less than £30,000 then around 47% or less of their property, interest dividend and other income is from dividends but for higher income ranges the proportion of income from dividends grows, to reach over 87% at the £1 million income range.

Figure 10 (d) shows it is relatively rare for taxpayers with total income below £50,000 to have other investment income. However, in the total income ranges between £500,000 and £1 million and over £1 million, 37% and 51% of taxpayers respectively have other investment income.

Figure 10: Percentage of taxpayers and percentage of (a) property, (b) interest, (c) dividend and (d) other income by income type and range of total income (lower limit)

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.7

Figure 10 also shows the percentage share of (a) property, (b) interest, (c) dividend and (d) other income attributed to each income type. For example, for individuals in the income range £12,500 to £15,000, 75% of property, interest, dividends and other income is from property, around 10% from interest, around 15% from dividends and a negligible amount from other income.

Amongst total income ranges above £40,000, around 72% is due to dividends while for the ranges below £30,000 of total income dividends account for between 15% and 47% of property, interest, dividend and other income in (c). Interest accounts for around 11% of income from property, interest, dividends and other income in the lower income bands, below £20,000. However, it falls sharply and to less than 2% in higher income ranges in (b). Property income declines as a share of property, interest, dividend and other income from just under 75% at lower income levels to around 4% for total incomes of £1 million or more in (a).

The tax year 2020 to 2021 statistics include the effects of the Landlords Interest Restriction. From 6 April 2017, landlords are no longer able to deduct all of their finance costs from their property income to arrive at their profits. Instead, they receive a basic rate reduction from their Income Tax liability for their finance costs. This restriction has been tapered in over 4 years and the 2020 to 2021 tax year is the final year of the taper. In the tax year 2020 to 2021 finance costs incurred by landlords are given as a basic rate tax reduction.

The number of taxpayers with income from banks and building societies decreased from £13.9 million to £10.9 million. The amount of interest from banks and building societies decreased from £5 billion to £4 billion.

9. Table 3.8 - Deductions and reliefs, tax year 2020 to 2021

Table 3.8 shows the size and relative importance of each relief type by income range and the share of total deductions and reliefs that arise in each total income range.

Deductions and reliefs are the amounts deducted from total income, along with personal allowances, to arrive at the amount of taxable income subject to an Income Tax charge. This includes amounts for contributions to ‘net pay’ and ‘relief at source’ pensions, and a variety of other deductions and reliefs including charitable giving and loss relief etc. Please see the supporting documentation for further details.

Note: the methodology for estimating contributions to relief at source pensions was revised for the tax year 2021 to 2022, so it better aligns with the methodology used in HMRC’s Private Pension statistics. Please refer to the footnotes to Table 3.8 and the supporting documentation for more information.

Figure 11: Percentage of taxpayers who have deductions and reliefs, and percentage of all deductions and reliefs by type and range of total income (lower limit)

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.8

Figure 11 provides analysis of the taxpayers who have deductions and reliefs only. The chart shows what the proportion of all taxpayers with deductions and reliefs have each type of deduction and relief. It also shows the share of total deductions and reliefs accounted for by each type.

Across all ranges of total income, between 5% and 61% of the taxpayers in this group have reliefs for contributions to net pay pensions. The likelihood of having such a relief exceeds 46% where total income is below £70,000. Where total income is above £70,000 the likelihood of having such a relief decreases as income increases in (a).

Looking at the taxpayers with deductions only, the proportion of those with relief at source pension contributions peaks at 57% for those in the income range starting at £15,000 and is the lowest (26%) for those with incomes over £1 million in (b).

The proportion of taxpayers with reliefs for other interest, charges and deductions is at most 12% in income ranges under £50,000. However, for incomes over £50,000 the proportion rises steeply alongside income and reaches a high of 88% for total incomes of £1 million and higher in (c). Note that taxpayers may have more than one relief type, so the proportions can sum to more than 100%.

In figure 11 (a), contributions to net pay pensions account for between 0% to 70% of all deductions and reliefs, depending on total income. They exceed 49% of all deductions and reliefs where total income is less than £70,000 but fall to 16% and below where total income exceeds £200,000.

In figure 11 (b), contributions to relief at source pensions account for around 2% to 58% of all deductions and reliefs, again depending on total income. They exceed 40% in income ranges from £70,000 to £500,000. But for incomes in the range starting at £500,000, they only account for around 17% of total deductions and reliefs, falling to just 2% for income above £1 million.

In figure 11 (c), for total income below £200,000, other deductions and reliefs account for at most 15% of total deductions and reliefs which tails off to close to zero at lower income ranges. For higher incomes, such reliefs account for an increasing share as income rises, rising sharply and peaking at 97% for incomes over £1 million.

10. Table 3.9 - Self-employment income assessable to tax, 2020 to 2021

Sources of income for individuals by range and industry

The sources of all individuals with self-employment income in the survey, whether taxpayers or not, are included in this table. Therefore, figures will not match those presented outside of Tables 3.9 & 3.10 that are based on taxpayers only. The figure shows the proportion of sources and profit by industry group based on Standard Industry Classification (SIC) 2007. The supporting documentation shows the composition of each category in the table.

An individual may have several instances of self-employment income from activity both as a sole trader and as a partner in a partnership. Therefore, an individual may have two or more sources of self-employed income. Where there are multiple instances as a sole trader, one instance is designated the primary source and all other instances are amalgamated into a single secondary source. Similarly, for multiple instances of partner income, one instance is designated the primary source and all other instances are amalgamated into a single secondary source. Where multiple instances exist, the secondary source record contains the sum of income amounts and is allocated to the industry of the most significant of those secondary sources. Consequently, the table may count up to four sources of self-employment income for each individual. The number of individuals underlying this table is shown in Table 3.10.

Table 3.9 shows that there were 5.54 million self-employment sources, accounting for £108 billion profit. The loss making sources are shown in the zero range of self-employment income.

This table shows that the industry which accounts for the highest share of sources and profit is the construction industry with 23% of all sources and 22% of all profits. Legal & Accounting Activities; Financial, Insurance and Real Estate Activities; and Human Health and Social Work Activities each account for a significantly higher proportion of total profit than number of sources, indicating average profits above the norm.

The number of sources from unknown industries increased by 15%. This increase is largely due to methodological changes made to the criteria for identifying individuals with self-employment income and unknown sources of self-employment income. The total value of self-employment profits from sources from unknown industries was not affected by this change.

The classification of sources of income to income bands has also been refined in Table 3.9 to ensure greater consistency when an individual has multiple sources of self-employment income.

Please see the supporting documentation for more details.

Figure 12: Self-employment income sources and percentage of self-employment income assessable to tax

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.9

11. Table 3.10 - Income of individuals with self-employment sources, tax year 2020 to 2021

By range of self-employment income and source

Table 3.10 sets out information about self-employment income for individuals whether they are taxpayers or not. It shows, for ranges of self-employment income, the composition of total income, average total income and the proportion of total income that is accounted for by self-employment income.

The sources of all individuals with self-employment income in the survey, whether taxpayers or not, are included in this table. Therefore, figures will not match those presented outside of Tables 3.9 & 3.10 that are based on taxpayers only.

The number of individuals with at least one self-employment income source decreased by 1% in the tax year 2020 to 2021 to 5.28 million, of which 3.28 million are taxpayers (Table 3.6). There was a particular decrease in the number of individuals with self-employment income in the £0-£1 range. This decrease is due to methodological changes made to the criteria for identifying individuals with self-employment income and sources of income from unknown industries.

The total value of self-employment profits has not been affected by this change but estimates of the composition of total income for individuals with self-employment have changed. Please see the supporting documentation for more details.

Figure 13: Income from self-employed individuals with other income sources by type and range of total income (lower limit)

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.10

Figure 13 looks at the forms of income received by those with some self-employment income.

The proportion of self-employed individuals with employment income varies between 10% and 56%. Over half of the individuals in the low profits or loss making income bands also receive employment income, with the proportions decreasing to around 10% for those making profits of up to £50,000. There is a significant increase in the number of individuals with employment income at the top end (23%), however, these profits account for a small proportion of their overall income (4%).

The proportion of cases with pension income is 18% or more for profit levels under £3,000 and fluctuates between around 9% and 12% for higher income ranges (above £10,000).

The proportion with property, dividend and other income is at 27% or higher in the lowest profit ranges (below £3,000) but falls to about 19% for profits from £7,500 and under £10,000, then rises with income to 79% where profits are £100,000 or more.

For individuals with self-employment income of £5,000 or more, their self-employment income is the largest income type and it constitutes 45% to 88% of total income. At lower profit levels, the proportion of total income accounted for by employment income predominates and peaks at 64%.

12. Table 3.11 - Income and tax, by sex, region and country, tax year 2020 to 2021

Table 3.11 shows the sources of income that comprise total income and tax for taxpayers in each total income band by sex, region and country.

Figure 14: Number of taxpayers and type of income by Region/Country

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.11.

Figure 14 shows that London had the highest amount of total income (£227 billion), followed by the South East (£196 billion). Northern Ireland had the least total income (£24 billion).

Figure 14 shows that the South East had the highest number of taxpayers (4.7 million), followed by London (4.2 million). In contrast, Northern Ireland had the lowest number of taxpayers (0.8 million).

13. Tables 3.16 and 3.17 - Income tax liabilities on non-savings/non-dividend income for Scotland, Wales and the rest of the UK, tax year 2020 to 2021

Tables 3.16 and 3.17 reflect the devolution of Income Tax to Scotland and Wales. They show estimates constructed from the SPI of the amount of tax that is due from non-savings/ non-dividend (NSND) income, that is, ‘earned income’.

Figure 15: The number of taxpayers and Income Tax due on earned income based on the Scottish and Welsh taxpayer indicators and the residential postcodes in Scotland and Wales

Source: Survey of Personal Incomes for tax year 2020 to 2021, Table 3.16 and Table 3.17

From the 2020 to 2021 tax year, tax liabilities have been calculated based on the Scottish and Welsh taxpayer indicators which identifies the relevant tax system that applies to an individual. Please see the supporting documentation for further details.

Tables 3.16 and 3.17 allow users to compare Income Tax liabilities on earned income for taxpayers by different classifications:

• Table 3.16 - where tax is due based on taxpayer indiactor

• Table 3.17 - where the taxpayer is a resident at the end of the tax year

The underlying tax liability calculations are the same for both tables. For further information about SRIT and WRIT, see the supporting documentation.

Comparison between the two tables shows that, overall, the differences between classifying taxpayers based on their residential postcode and using the Scottish or Welsh taxpayer indicators are relatively small. Slightly more taxpayers are identified as having a Scottish or Welsh residential postcode at the end of the tax year as compared with those having a corresponding Scottish or Welsh taxpayer indicator. There were 2.53 million taxpayers with Scottish postcodes compared with 2.52 million individuals with a Scottish taxpayer indicator in the 2020 to 2021 tax year. Additionally, there were 1.39 million taxpayers with Welsh postcodes compared with 1.38 million individuals with a Welsh taxpayer indicator the 2020 to 2021 tax year. The total tax on earnings was also slightly higher for those with residential addresses in Scotland and Wales at the end of the tax year at £12.3 billion for Scottish residents compared to £12.2 billion for taxpayers using the Scottish taxpayer indicator and £5.09 billion for Welsh residents compared to £5.02 billion for those with a Welsh taxpayer indicator.

14. Related publications

Income Tax liabilities HMRC also produce statistics on Income Tax liabilities. Use these to find out detailed breakdowns of the number of people paying Income Tax and the distribution of Income Tax liabilities across taxpayers and tax bands.

PAYE Real Time Information (RTI) Statistics Experimental monthly estimates of pay rolled employees and their pay from HM Revenue and Customs’ (HMRC’s) Pay As You Earn (PAYE) Real Time Information (RTI) data. This is a joint release between HMRC and the Office for National Statistics (ONS).

ONS guide to sources of data on income and earnings This guide outlines the different data sources and outputs that feed into the analysis of income and earnings within the UK. It explains important information for each data source, including what data are available and the sources’ main uses, strengths and limitations.

GSS interactive tool The Government Statistic Service has also produced a tool to browse income and earnings official statistics and can be found at the following link: GSS Income and Earnings interactive tool.

15. Contact Information

If you have any queries regarding this publication, please use the contact information below to get in touch.

Statistical contact: N Anderson, spi.enquiries@hmrc.gov.uk

Media contact: HMRC Press Office, news.desk@hmrc.gov.uk

Website: Personal Income Statistics

Frequency: Published annually

Publication date: 8 March 2023 (Revised February 2024)

Next publication date: February/ March 2024