Accredited official statistics

Personal Incomes Statistics 2022 to 2023: Commentary

Published 12 March 2025

1. Introduction

1.1 About this publication

Statistics about personal incomes are assessed using the annual Survey of Personal Incomes (SPI). The SPI 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 2022 to 2023 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 does not cover the effects of COVID-19 pandemic related Government support (through the Self-Employment Income Support Scheme and Coronavirus Job Retention Scheme) on income and Income Tax liabilities unlike the previous two releases. This is because these schemes ceased operation before the 2022 to 2023 tax year.

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 Accredited Official Statistics tables 3.12 to 3.15a by tax year.

2. summary statistics for Personal Incomes Statistics for the tax year 2022 to 2023

3. supporting documentation on the methodology used to produce these statistics is available Personal Incomes Statistics for the tax year 2022 to 2023: Supporting Documentation

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 2023

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

Line chart showing yearly total income before tax at selected percentiles

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.1

The median income before tax has generally increased each year from the tax year ending 1993 to reach £28,400 in the tax year ending 2023, a 4% increase on the previous tax year median income of £27,200.

In addition, the income level of the 99th percentile increased from £62,800 in the tax year ending 1993 to £201,000 in the tax year ending 2023. The income level of the 99th percentile was 1% higher in the tax year ending 2023 compared to the previous tax year (£199,000). This lower increase, compared with the increase in the median income, is partially a result of the overall increase in the taxpayer population. This increases the number in each percentile and reduced the income threshold of each percentile. This effect is greatest at the 99th percentile, where there is a wider spread of incomes.

For those at the 1st percentile, income has increased over the same period, from £3,630 to £12,800. 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 £12,570 over the same period.

Note: comparisons over time may be affected by changes in methodology. Notably, there was a revision to the grossing factors in the 2018 to 2019 publication, which is discussed in the commentary and supporting documentation for that tax year. For information on other changes, please refer to the supporting documentation for each year for detailed information or the background quality report for a summary of the most notable methodological changes over time.

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

Column chart showing percentile points of total income before tax for the last three tax years

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.1 and Table 3.1a

Figure 2 shows that in the tax year 2022 to 2023, 10% of taxpayers had an income before tax of less than £15,500. At the upper end of the distribution, 10% of taxpayers had an income before tax of more than £64,800.

3. Table 3.2 - Distribution of median and mean income and tax, by age range and sex, tax year 2022 to 2023

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

Bar chart showing number of taxpayers and median income before tax by age and sex

Source: Survey of Personal Incomes for tax year 2022 to 2023, 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 working age taxpayers peaks at the 30-34 age range for males (at 1.9 million) and at the 30-34 age range for females (at 1.5 million).

The proportion of taxpayers in the 75 and over range continues to increase, reflecting the UK’s ageing population. 11% of taxpayers were in the 75 and over age range in the tax year 2022 to 2023, compared to 7% of taxpayers in the tax year 2011 to 2012.

The median income across all age groups was £31,100 for males and £25,500 for females. The highest median income was found in the 45-49 age range (£39,700) for males and in the 45-49 age range (£30,100) for females.

4. Table 3.3 - Distribution of total income before and after tax by sex, tax year 2022 to 2023

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)

Bar chart showing total income before tax and total tax by sex and range of income

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

Column chart showing number of taxpayers (thousands) by sex and range of income

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.3

A relatively small number of taxpayers (6.2 million, 18%) have total income over £50,000 but these taxpayers account for a notable proportion of total income (£635 billion, 46%) and an even greater proportion of total tax (£172 billion, 70%). 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 2022 to 2023

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.

5.1 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 aligned in the 2022 to 2023 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 Incomes Statistics are compiled using the tax liabilities based on the tax regime in which individuals are liable to tax, rather than their residential postcode. Please see the supporting documentation for additional information.

5.2 Table 3.4 summary

Most taxpayers (28.2 million, 82%) are basic rate taxpayers and account for £75.6 billion (31%) of tax. Higher rate taxpayers (5.1 million, 15%) account for £85.1 billion (35%) of tax. Additional rate taxpayers (0.6 million, 2%) account for £83.4 billion (34%) of tax.

The number of additional rate taxpayers increased by 49,000 (9.5%) between the tax years 2021 to 2022 and 2022 to 2023 to 0.6 million. Income Tax liabilities of additional rate taxpayers increased by £2.6 billion (3.2%) to £83.4 billion. The increase in taxpayers was partly driven by increases in employment income. It is likely that 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. The additional rate share of total tax decreased from 36% to 34%. This is in part due to increased tax liabilities from higher rate taxpayers (the higher rate share increased from 33% to 35%) and a decrease in dividend income for those with total incomes over £150,000 (the likely result of the forestalling of dividend income to 2021 to 2022 due to the increase in the rates of dividend tax in 2022 to 2023).

The number of higher rate taxpayers increased by 680,000 (15.3%) between the tax years 2021 to 2022 and 2022 to 2023 to 5.1 million with an increase of £11.5 billion (15.6%) of tax to £85.1 billion. The increase in the number of higher rate taxpayers is likely to be due to the unchanged higher rate threshold, remaining at £50,270 in 2022 to 2023, and increases in income (largely from employment) resulting in more taxpayers being brought into the higher rate of tax. The growth in tax liability due to higher rate taxpayers is also partly due to the tapering of the Personal Allowance remaining unchanged at £100,000.

There was an increase in the number of basic rate taxpayers of 790,000 (2.9%) and the overall number of taxpayers increased by 1.5 million (4.6%). This is likely to be due to the unchanged Personal Allowance (remaining at £12,570) in 2022 to 2023 and increases in income, contributing to an increase in Income Tax liable at the basic rate and bringing more individuals into paying Income Tax.

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

Column chart showing taxpayers by their largest source of income, percentages in each marginal rate band

Source: Survey of Personal Incomes for tax year 2022 to 2023, 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

Column chart showing Income tax from taxpayers by their largest source of income, percentages in each marginal rate band

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.4

Figure 7 shows that the proportion of tax from individuals whose largest source of income was from self-employment was larger than average among additional rate taxpayers. Individuals whose largest source of income was from Pensions 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 2022 to 2023

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

Column chart showing percentage of taxpayers with each income type by range of total income and percentage of income by type and deductions

Source: Survey of Personal Incomes for tax year 2022 to 2023, 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 44% in the lowest income range to 89% for incomes above £1 million in (b). The proportion with deductions is relatively stable for income ranges above £20,000 (ranging from 56% to 63%) 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 3% on average; 1.7% 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 2022 to 2023

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)

Column chart showing percentage of taxpayers and income, by type and range of total income (lower limit)

Source: Survey of Personal Incomes for tax year 2022 to 2023, 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 51% to 91% 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 24% have other pension income in (c, d), with the numbers peaking at 39% and 43% 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 notable shares of the overall amount where total income is between £12,570 and £30,000. For total income above £1 million the self-employment share is at 39%. The self-employment share is at its lowest at around the £50,000 to £70,000 income level at 4%.

8. Table 3.7 - Property, interest, dividend and other income, tax year 2022 to 2023

Table 3.7 presents information about four types of income (a) property; (b) interest from banks and building societies; (c) dividends and (d) other income for taxpayers in each range of total income. For each range of total income it shows: the level and average amount of income by type; the distribution of total income from property, interest, dividends and other income; and the percentage share of total income from property, interest, dividends and other income that each income type comprises.

Figure 10 looks at only taxpayers with property, interest, dividends, or other income. 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 taxpayers with property income is less than 14% for ranges of total income below £50,000. However, this proportion rises with as incomes increase, then is broadly stable at from incomes of £100,000 to incomes over £1 million, around 30%.

Figure 10 (b) shows that the proportion of taxpayers with income from interest is more than 69% across all ranges of total income.

Figure 10 (c) shows that fewer than 43% of taxpayers with total income below £30,000 have dividend income, compared to 85% of taxpayers with over £1 million total income.

Figure 10 (d) shows it is relatively rare for taxpayers with total income below £50,000 to have other income. However, for total income ranges between £500,000 and £1 million and over £1 million, 35% and 52% of taxpayers respectively have other 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)

Column chart showing 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 2022 to 2023, Table 3.7

Figure 10 also shows the percentage share of total income from property, interest, dividends and other income that each income type comprises. For example, for taxpayers in the total income range £12,570 to £15,000, 74% of property, interest, dividends and other income is from property, around 14% from interest, around 11% from dividends and a negligible amount from other income.

In (a) property income declines as a share of total income from property, interest, dividends and other income from just under 74% at lower income levels to around 3% for total incomes of £1 million or more.

In (b) interest accounts for around 15% of total income from property, interest, dividends and other income in the lowest income bands, below £20,000. However, it falls to around 4% in higher income ranges.

The number of taxpayers with income from banks and building societies increased from 11.1 million to 15.3 million. The amount of interest from banks and building societies increased from £2.5 billion to £5.8 billion. This is likely due to the large increases in interest rates seen in 2022 to 2023. The Bank of England base rate, which influences the rates banks pay individuals on their savings, increased from 0.75% to 4.25% during the tax year 2022 to 2023.

In (c) and amongst total income ranges above £40,000, dividends comprise around 72% or more of total income from property, interest, dividends and other income. While for ranges below £40,000 dividends comprise between 11% and 52% of total income from property, interest, dividends and other income.

The number of taxpayers with dividend income increased by 6% from 3.8 million in the tax year 2021 to 2022 to 4.0 million in 2022 to 2023. Income from dividends decreased by 1.5% over the same period, from £71.6 billion in the tax year 2021 to 2022 to £70.5 billion in 2022 to 2023. the fall in dividend income is largely driven by a decrease in the amount of dividend income reported by taxpayers in the highest income band (incomes over £1 million) which fell by 24%. This may in part be due to behavioural responses to changes in dividend taxation. From the 2022 to 2023 tax year, dividend tax rates increased by 1.25 percentage points from their 2021 to 2022 level. It is likely that forestalling behaviour occurred in the previous tax year (when large increases in dividend income were reported by taxpayers towards the higher end of the income distribution) leading to reduced dividend income in 2022 to 2023.

Forestalling is the act of bringing forward income so that it is received in the most tax efficient year. This occurs when an individual brings income forward to a tax year before a higher rate of taxation comes into effect, therefore lowering their tax liabilities over a longer time period.

9. Table 3.8 - Deductions and reliefs, tax year 2022 to 2023

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.

Note: Please exercise caution when comparing changes over time. Comparisons may be affected by changes in methodology.

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)

Column chart showing 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 2022 to 2023, 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.

In (a), across all ranges of total income, between 6% and 54% of the taxpayers in this group have reliefs for contributions to Net Pay pensions. The likelihood of having such a relief exceeds 43% 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 (b), taxpayers with deductions only, the proportion of those with Relief at Source pension contributions peaks at 63% for those in the income range starting at £12,570 and is the lowest at 35% for those with incomes over £1 million.

In (c), the proportion of taxpayers with reliefs for other interest, charges and deductions is at most 9% in income ranges under £50,000. However, for incomes over £50,000 the proportion rises steeply alongside income and reaches a high of 83% for total incomes of £1 million and higher.

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 63% of all deductions and reliefs, depending on total income. They exceed 47% of all deductions and reliefs where total income is less than £70,000 but fall to 18% and below where total income exceeds £200,000.

In figure 11 (b), contributions to Relief at Source pensions account for around 2% to 61% of all deductions and reliefs, again depending on total income. They exceed 43% in income ranges from £70,000 to £500,000. But for incomes in the range starting at £500,000, they only account for around 19% 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 around 2% 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.

The number of taxpayers making contributions to Relief at Source pensions increased to 10.0 million in the tax year 2022 to 2023 from 9.6 million in 2021 to 2022. Similarly, the total value of contributions increased to £16.9 billion from £15.5 billion.

The number of taxpayers making contributions to Net Pay pensions increased to 8.6 million in the tax year 2022 to 2023 from 8.3 million in 2021 to 2022. The amount of contributions increased to £19.0 billion from £17.9 billion over the same period.

10. Table 3.9 - Self-employment income assessable to tax, 2022 to 2023

10.1 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 and 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 notable 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.

Income from self-employment (sole trade and partner) is assigned to an industry using the business text descriptions supplied on self-assessment returns. Where the description provided is missing or not distinct enough it is not always possible to allocate income to a particular SIC code and the industry is classified as unknown.

Table 3.9 shows that there were 5.63 million self-employment sources, accounting for £118 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 21% of all profits. Legal and Accounting Activities and Finance, Insurance and Real Estate Activities each account for a notably higher proportion of total profit than number of sources, indicating higher than average profits when compared to other industries.

Self-employment income did not increase uniformly across all sectors, The biggest increase was in the Arts, Entertainment and Recreation industry (14%) in the tax year 2022 to 2023. Conversely, the biggest decrease was in the Accommodation and Food Service Activities industry (24%).

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

Bar chart showing self-employment income sources and percentage of self-employment income assessable to tax

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.9

11. Table 3.10 - Income of individuals with self-employment sources, tax year 2022 to 2023

11.1 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 and 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 2022 to 2023 to 5.37 million, of which 3.53 million are taxpayers (Table 3.6).

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

Column chart showing 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 2022 to 2023, 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 58%. 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 notable increase in the number of individuals with employment income at the top end (23%), however, this income accounts for a small proportion of their overall income (4%).

The proportion of cases with pension income is 20% or more for profit levels under £3,000 and fluctuates between around 8% and 12% for higher income ranges (above £10,000).

The proportion of individuals with property, dividend and other income is at 30% or higher in the lowest profit ranges (below £3,000) but falls to about 18% for profits from £10,000 and under £15,000, 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 38% to 89% of total income. At lower profit levels, the proportion of total income accounted for by employment income predominates and peaks at 66%.

12. Table 3.11 - Income and tax, by sex, region and country, tax year 2022 to 2023

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

Bar chart showing number of taxpayers and type of income by Region/Country

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.11.

Figure 14 shows that London had the highest amount of total income (£270 billion), followed by the South East (£231 billion). Northern Ireland had the least total income (£28 billion).

Figure 14 shows that the South East had the highest number of taxpayers (5.1 million), followed by London (4.6 million). In contrast, Northern Ireland had the lowest number of taxpayers (0.8 million).

13. Table 3.12 - Income and tax for individuals of pension age, by sex, region and country, tax year 2022 to 2023

Taxpayers of pension age are those over the State Pension Age (SPA), which for the purposes of these statistics is aged 66 for females and males as at 5 April 2023.

There were 7.13 million taxpayers of pension age for the tax year 2022 to 2023; of these 57.2% are male and 42.8% are female. (Table 3.12)

The number of taxpayers of pension age increased 5.7% since the previous tax year. They account for 20.7% of all taxpayers and 15% of total income.

The South East has the highest number of taxpayers of pension age and the largest amount of total income (1.11 million and £36.4 billion respectively). Northern Ireland has the fewest taxpayers of pension age and the lowest amount of total income (151,000 and £4.3 billion respectively) (Table 3.12).

Figure 15: Number of taxpayers of pension age and total income in the tax year ending 2023

Bar chart showing the number of taxpayers of pension age and total income in the tax year ending 2023

Source: Survey of Personal Incomes for tax year 2022 to 2023, Table 3.12.

14. Tables 3.13 to 3.15a - Income and tax by county, borough, district, unitary authority and Parliamentary Constituency, tax year 2022 to 2023

Income by county and region

The highest regional mean and median value for total income, £59,000 and £34,100 respectively, are found in London. The county with the highest mean and median value of total income was Surrey at £60,300 and £35,300 respectively. The lowest mean total income was £31,900 for South Yorkshire. The lowest median of total income was estimated for South Yorkshire at £25,600. (Table 3.13)

Income by borough and district or unitary authority

The highest mean value of total income was estimated in Kensington and Chelsea (£209,000) while the highest median value was in the City of London (£60,700). The lowest mean value of total income was Blackpool UA at £27,000 and the lowest median value of total income was Pendle at £23,100. (Table 3.14)

Income by Parliamentary Constituency

The parliamentary constituency with the highest mean value of total income was Kensington and Bayswater (£181,000) while the highest median value was estimated in the Cities of London and Westminster (£47,900). The parliamentary constituency with lowest mean value of total income was Blackpool South, (£26,500). The lowest median value was in Leicester East (£22,400). (Table 3.15)

Note

The Parliamentary Constituency breakdowns in Table 3.15 for the 2022 to 2023 tax year have been updated to reflect the changes in boundaries from the 2023 Boundary Review process. The new Westminster Parliamentary Constituencies became operable on the 4th July 2024. Please refer to the supporting documentation for more detail.

These values from tables 3.13 to 3.15 are sample based estimates; confidence intervals at the 95% level are available. For more information on estimates and measures of precision see the supporting documentation.

15. 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 2022 to 2023

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 income, that is, ‘earned income’.

Figure 16: 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

Bar chart showing 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 2022 to 2023, Table 3.16 and Table 3.17

Tax liabilities are 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 indicator

• 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, 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 2.77 million taxpayers with Scottish postcodes compared with 2.75 million individuals with a Scottish taxpayer indicator in the 2022 to 2023 tax year. Additionally, there were 1.50 million taxpayers with Welsh postcodes compared with 1.49 million individuals with a Welsh taxpayer indicator the 2022 to 2023 tax year. The total tax on earnings was slightly higher for those with residential addresses in Scotland at the end of the tax year at £15.4 billion compared to those identified using the Scottish taxpayer indicator at £15.3 billion. The total tax on earnings was £6.19 billion for Welsh residents compared to £6.10 billion for those with a Welsh taxpayer indicator.

16. 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.

17. Contact Information

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

Statistical contact: M Whent, spi.enquiries@hmrc.gov.uk

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

Website: Personal Income Statistics

Frequency: Published annually

Publication date: March 2025

Next publication date: February/ March 2026