Too few pay tax

Record numbers pay no income taxInstitute of Fiscal Studies (IFS) analysis of HMRC tax records shows that a record number of adults are paying no income tax, with the proportion rising from 38% in 2010 to 43% now. The figures reveal that the top 1% of earners account for 27% of the income tax take. The IFS says relying on such a small group is “risky”, suggesting that any policy that threatened them could have a disproportionate effect on tax and public spending. Robert Joyce, the IFS’ head of income, work and welfare, said: “It creates additional risks if such a large share of your revenues is coming from a small group. Suddenly, the behaviour of that group becomes a particularly big issue for the rest of us.”