Budgeting heavily on the "widest shoulders" in the Autumn Budget might result in the Treasury losing multiple billions
In the 2025-26 fiscal year, the top taxpayers in the UK, specifically the top one percent, contribute approximately 26.6% of all income tax receipts, a decline from 30.7% in 2021-22 [1]. This significant contribution is reflected in the annual figures, with the top 1,000 taxpayers alone accounting for over 4% of HMRC's annual tax receipts [2].
During the 2024-25 tax year, HM Revenue & Customs (HMRC) collected around £858.9 billion in total taxes, with income tax, capital gains tax, and National Insurance contributions (NICs) together comprising about 57% of that total [4]. Based on this, the top 1% of earners would contribute roughly a quarter of the income tax portion, meaning their annual income tax contribution could be estimated in the tens of billions of pounds.
However, it's important to note that the exact figure depends on total income tax receipts within that overall tax total. A freeze on tax thresholds since 2022 is causing "fiscal drag," pulling more taxpayers into higher tax brackets and increasing the tax burden on high earners. If this freeze extends to 2030, someone earning £100,000 could pay over £7,000 more annually than if thresholds had kept pace with inflation [2].
Self-assessment tax receipts (mainly paid by higher earners and the self-employed) have increased by £2.7 billion compared to the prior year, indicating somewhat higher payments from high earners recently [3].
While the UK's top 10,000 taxpayers paid an average tax bill of £2.5 million each in 2022/2023 and collectively accounted for almost a tenth of HMRC's annual tab, detailed data on specific individual taxpayers beyond the top 1% aggregate is not publicly disclosed due to privacy and data protection [5].
Other wealthy individuals and entities contribute significant amounts through inheritance tax (£3.1 billion collected April-July 2025) and other taxes, but specific data on individual taxpayers is not available.
| Taxpayer Group | Share of Income Tax Paid (2025-26) | Approximate Annual Contribution (£ billion, est.) | |-------------------------|-----------------------------------|--------------------------------------------------| | Top 1% earners | 26.6% of income tax receipts | Likely tens of billions within HMRC total tax £858.9b overall | | Additional higher earners (above basic rate) | Included in higher and additional rate payers | Increasing burdens due to threshold freezes |
This data is mainly from HMRC statistics and analysis from the TaxPayers’ Alliance and government reports [1][2][3][4][5].
As the government prepares for the upcoming Budget on 30 October, there are rumours that capital gains tax could also be increased, and the chancellor has promised not to raise taxes on working people, but there are rumours of plans to raise the National Insurance paid by employers.
Sources:
- TaxPayers' Alliance
- Resolution Foundation
- HMRC
- HM Treasury
- BBC News
In light of the increasing tax burden on high earners due to the freeze on tax thresholds, the upcoming Budget on 30 October may impact the finances of the top 1% earners who contribute approximately tens of billions of pounds in income tax to the UK's total tax receipts. The potential changes could also extend to finance-related matters such as capital gains tax and National Insurance contributions paid by employers.
The debate surrounding these proposed changes is not limited to business matters but also encompasses politics and general news, as the government's decisions could have a significant impact on the overall economy.
