The effects of taxes and benefits on household income: financial year ending 2015

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  • In the financial year ending 2015 (2014/15), the average income of the richest fifth of UK households before taxes and benefits was £83,800, 14 times greater than that of the poorest fifth who had an average income of £6,100 per year.
  • After taking into account taxes and benefits the ratio between the average incomes of the top and the bottom fifth of households (£62,500 and £16,500 respectively) is reduced to 4 to 1.
  • The richest fifth of households paid £29,800 in taxes (direct and indirect) compared with £5,200 for the poorest fifth.
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