Accredited official statistics

Personal Incomes Statistics 2021 to 2022: Commentary

Published 29 February 2024

1. Introduction

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 2021 to 2022 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. National Statistics are accredited official statistics.

2. summary statistics for Personal Incomes Statistics for the tax year 2021 to 2022

3. supporting documentation on the methodology used to produce these statistics is available Personal Incomes Statistics for the tax year 2021 to 2022

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 2022

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 2021 to 2022, Table 3.1

The median income before tax has generally increased each year from the tax year ending 1993 to reach £27,200 in the tax year ending 2022, a 3% increase on the previous tax year median income of £26,300.

In addition, the income level of the 99th percentile increased from £62,800 in the tax year ending 1993 to £199,000 in the tax year ending 2022. The income level of the 99th percentile was 8% higher in the tax year ending 2022 compared to the previous tax year (£183,000).

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 significant methodological changes over time.

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

Source: Survey of Personal Incomes for tax year 2021 to 2022, Table 3.1 and Table 3.1a

Figure 2 shows that in the tax year 2021 to 2022, 10% of taxpayers had an income before tax of less than £15,300. At the upper end of the distribution, 10% of taxpayers had an income before tax of more than £62,000.

3. Table 2 - Distribution of median and mean income and tax, by age range and sex, tax year 2021 to 2022

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 2021 to 2022, 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 both males (at 1.8 million) and females (at 1.5 million).

The proportion of taxpayers in the 75 and over range continues to increase, reflecting the UK’s ageing population. 10% of taxpayers were in the 75 and over age range in the tax year 2021 to 2022, compared to 7% of taxpayers in the tax year 2011 to 2012.

The median income across all age groups was £29,900 for males and £24,400 for females. The highest median income was found in the 45-49 age range (£37,700) for males and in the 40-44 age range (£28,900) for females.

4. Table 3.3 - Distribution of total income before and after tax by sex, tax year 2021 to 2022

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 2021 to 2022, Table 3.3

A relatively small number of taxpayers (5.4 million, 16%) have total income over £50,000 but these taxpayers account for a significant proportion of total income (£573 billion, 44%) and an even greater proportion of total tax (£157 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 2021 to 2022

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 2021 to 2022 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.

Table 3.4 summary

Most taxpayers (27.4 million, 83%) are basic rate taxpayers and account for £70.6 billion (31%) of tax. Higher rate taxpayers (4.4 million, 13%) account for £73.6 billion (33%) of tax. Additional rate taxpayers (0.5 million, 2%) account for £80.8 billion (36%) of tax.

The number of additional rate taxpayers increased by 87,000 between the tax years 2020 to 2021 and 2021 to 2022 to 520,000. Income Tax liabilities of additional rate taxpayers increased by £17.1 billion to £80.8 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 33% to 36%.

The number of higher rate taxpayers increased by 450,000 between the tax years 2020 to 2021 and 2021 to 2022 to 4.4 million with an increase of £8.7 billion of tax to £73.6 billion. This is partly due to the low level of indexation to the higher rate threshold, which increased from £50,000 to £50,270 in the tax year 2021 to 2022.

The increase in the number of additional and higher rate taxpayers is also due to wage growth being stronger in the middle to higher incomes, which results in individuals becoming liable for the higher and additional rates of taxation.

There was an increase in the overall number of taxpayers of 1.3 million to 33.0 million. Alongside income growth, this is due to the low level of indexation to the Personal Allowance, which increased from £12,500 to £12,570 in the tax year 2021 to 2022.

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

Source: Survey of Personal Incomes for tax year 2021 to 2022, 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 2021 to 2022, 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 2021 to 2022

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 2021 to 2022, 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 34% in the lowest income range to 87% 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 33% 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; 2.5% or less for incomes under £20,000 and 2.8% 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 2021 to 2022

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 2021 to 2022, 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 53% 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 41% 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 42% 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 £12,570 and £30,000. For total income above £1 million the self-employment share is at 35%. The self-employment share is at its lowest at around the £70,000 to £100,000 income level at 5%.

8. Table 3.7 - Property, interest, dividend and other income, tax year 2021 to 2022

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 18% for ranges of total income below £50,000. However, this proportion rises with as incomes increase, then is broadly stable at around 30% for incomes over £100,000.

Figure 10 (b) shows that the proportion of taxpayers with income from interest is more than 62% across all ranges of total income. Figure 10 (c) shows that fewer than 26% of taxpayers with total income below £40,000 have dividend income, compared to 81% of taxpayers with over £1,000,000 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, 33% and 48% 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)

Source: Survey of Personal Incomes for tax year 2021 to 2022, Table 3.7

Figure 10 also shows the percentage share of 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, 82% of property, interest, dividends and other income is from property, around 7% from interest, around 11% from dividends and a negligible amount from other income.

In (c) and amongst total income ranges above £40,000, dividends comprise around 69% or more of total income from property, interest, dividends and other income. While for ranges below £40,000 dividends comprise between 11% and 55% of total income from property, interest, dividends and other income. In (b) interest accounts for around 8% of total income from property, interest, dividends and other income in the lowest income bands, below £20,000. However, it falls to around 1% in higher income ranges. In (A) property income declines as a share of total income from property, interest, dividends and other income from just under 82% at lower income levels to around 3% for total incomes of £1 million or more.

The number of taxpayers with income from banks and building societies increased from £10.9 million to £11.1 million. The amount of interest from banks and building societies decreased from £3.6 billion to £2.5 billion. This is likely due to the impact of COVID-19 on the savings behaviours of individuals in all but the highest income bands. Decreases in amounts were mainly seen in total income bands below £300,000. The Bank of England rate, which influences the rates banks pay individuals on their savings, remained low (less than 1%) during the tax year 2021 to 2022.

The number of taxpayers with dividend income increased by 3.4% from 3.7 million in the tax year 2020 to 2021 to 3.8 million in 2021 to 2022. Income from dividends increased by 17.4% over the same period, from £61 billion in the tax year 2020 to 2021 to £71.6 billion in 2021 to 2022. The amount of dividend income reported by individuals with total income below £50,000 decreased, however dividend income reported by individuals with income over £50,000 increased substantially, with dividend income for those in the highest income band (income over £1 million) increasing by 85%. This may in part be due to the impacts of COVID-19 (as dividend income was lower in 2020 to 2021 than previous years) and behavioural responses to changes in dividend taxation. From the 2022 to 2023 tax year, dividends rates have been increased by 1.25 percentage points from their 2021 to 2022 levels. It is likely this drove some forestalling behaviour in the tax year 2020 to 2021, where dividend income has been brought forward.

Forestalling is the act of manipulating income so that it is received in the most tax efficient year. This occurs when somebody 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 2021 to 2022

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.

For the tax year 2021 to 2022, the methodology for estimating contributions to relief at source pensions has been revised so it better aligns with the methodology used in HMRC’s Private Pension statistics. All relief at source pension contributions are gross of basic rate tax relief and information from multiple sources has been used to match relief at source pension contributions to Self Assessment (SA) cases. In previous tax years, only information from SA returns was used for SA cases. In the 2020 to 2021 tax year only, relief at source pension contributions for PAYE cases were net of any basic rate tax relief. Please see the supporting documentation for further details.

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)

Source: Survey of Personal Incomes for tax year 2021 to 2022, 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 6% and 55% of the taxpayers in this group have reliefs for contributions to net pay pensions. The likelihood of having such a relief exceeds 44% 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 62% for those in the income range starting at £12,570 and is the lowest (35%) for those with incomes over £1 million in (b).

The proportion of taxpayers with reliefs for other interest, charges and deductions is at most 10% in income ranges under £50,000. However, for incomes over £50,000 the proportion rises steeply alongside income and reaches a high of 82% 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 1% to 64% of all deductions and reliefs, depending on total income. They exceed 46% 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 62% of all deductions and reliefs, again depending on total income. They exceed 46% in income ranges from £70,000 to £500,000. But for incomes in the range starting at £500,000, they only account for around 22% 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 13% of total deductions and reliefs which tails off to around 3% 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 9.6 million in the tax year 2021 to 2022 from 7.0 million in 2020 to 2021. Similarly, the total value of contributions increased to £15.5 billion from £11.4 billion. This is largely due to methodological changes for estimating contributions to relief at source pensions (as detailed above and in the supporting documentation). Changes to working, retirement and contributing behaviours are also likely to have contributed to the increase in relief at source pensions.

10. Table 3.9 - Self-employment income assessable to tax, 2021 to 2022

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 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 5.69 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 & Accounting Activities; Financial, Insurance and Real Estate Activities each account for a significantly 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 (23%) industry in the tax year 2021 to 2022. Conversely, the biggest decrease was in the Wholesale and Retail Trade (7%) industry. This is the reverse of changes observed last year (there was a decrease of 12% in Arts, Entertainment and Recreation and an increase of 28% in Wholesale and Retail Trade) so may be due to activity returning to normal as businesses emerged from COVID-19 restrictions.

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

Source: Survey of Personal Incomes for tax year 2021 to 2022, Table 3.9

11. Table 3.10 - Income of individuals with self-employment sources, tax year 2021 to 2022

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 increased by 3% in the tax year 2021 to 2022 to 5.42 million, of which 3.52 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)

Source: Survey of Personal Incomes for tax year 2021 to 2022, 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 59%. 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 (24%), however, this income accounts for a small proportion of their overall income (5%).

The proportion of cases with pension income is 20% or more for profit levels under £3,000 and fluctuates between around 8% and 11% for higher income ranges (above £10,000).

The proportion of individuals with property, dividend and other income is at 26% or higher in the lowest profit ranges (below £3,000) but falls to about 17% for profits from £10,000 and under £15,000, then rises with income to 76% 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 41% to 88% 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 2021 to 2022

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 2021 to 2022, Table 3.11.

Figure 14 shows that London had the highest amount of total income (£251 billion), followed by the South East (£216 billion). Northern Ireland had the least total income (£26 billion).

Figure 14 shows that the South East had the highest number of taxpayers (4.8 million), followed by London (4.3 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 2021 to 2022

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 2022.

There were 6.74 million taxpayers of pension age for the tax year 2021 to 2022; of these 58.1% are male and 41.9% are female. (Table 3.12)

The number of taxpayers of pension age increased 4.3% since the previous tax year. They account for 20.4% of all taxpayers and 14.9% of total income.

The South East has the highest number of taxpayers of pension age and the largest amount of total income (1.06 million and £33.8 billion respectively). Northern Ireland has the fewest taxpayers of pension age and the lowest amount of total income (138,000 and £3.9 billion respectively) (Table 3.12).

Figure 15: Number of taxpayers of pension age and total income in the tax year ending 2022

Source: Survey of Personal Incomes for tax year 2021 to 2022, Table 3.12.

14. Tables 3.13 to 3.15a - Income and tax by county, borough, district, unitary authority and Parliamentary Constituency, tax year 2021 to 2022

Income by county and region

The highest regional mean and median value for total income, £58,300 and £32,900 respectively, are found in London. The county with the highest mean and median value of total income was Surrey at £60,000 and £34,800 respectively. The lowest mean total income was £31,300 for South Yorkshire. The lowest median of total income was estimated for West Midlands at £24,600. (Table 3.13)

Income by borough and district or unitary authority

The highest mean value of total income was estimated in Kensington and Chelsea (£208,000) while the highest median value was in the City of London (£62,200). The lowest mean and median value of total income was Blackpool UA at £25,900 and £21,900 respectively. (Table 3.14)

Income by Parliamentary Constituency

The parliamentary constituency with the highest mean value of total income was Kensington (£192,000) while the highest median value was estimated in the Richmond Park (£45,200). The parliamentary constituency with lowest mean value of total income was Blackpool South, (£25,500). The lowest median value was in Blackpool South (£21,400). (Table 3.15)

Note

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 2021 to 2022

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

Source: Survey of Personal Incomes for tax year 2021 to 2022, 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 2.65 million taxpayers with Scottish postcodes compared with 2.63 million individuals with a Scottish taxpayer indicator in the 2021 to 2022 tax year. Additionally, there were 1.45 million taxpayers with Welsh postcodes compared with 1.44 million individuals with a Welsh taxpayer indicator the 2021 to 2022 tax year. The total tax on earnings was slightly higher for those with residential addresses in Scotland at the end of the tax year compared to those identified using the Scottish taxpayer indicator at £13.8 billion. The total tax on earnings was £5.65 billion for Welsh residents compared to £5.59 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, [email protected]

Media contact: HMRC Press Office, [email protected]

Website: Personal Income Statistics

Frequency: Published annually

Publication date: February 2024

Next publication date: February/ March 2025