Income tax rise for Sheffield residents

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Residents in Sheffield have seen their income tax bills increase by four per cent in the last year.

New research from Sheffield accountancy firm UHY Hacker Young said the increase is four times higher than the national average rise - although the amount paid out in the city is lower than most places in the UK.

Its study found Sheffield residents paid an average of £3,381 in income tax last year, up from £3,255 in 2011/12 and compared to a UK average of £4,363.

The average annual income in Sheffield is £24,200, compared to an average UK gross annual salary of £27,200.

UHY Hacker Young said residents of Doncaster North saw a 19 per cent increase in their average income tax bills, rising from £2,980 in 2011/12 to £3,550 last year.

In contrast, the average amount of income tax paid in Wentworth & Dearne fell from £3,030 to £2,840 last year, a decrease of six per cent.

Andrew Hulse, partner at UHY Hacker Young in Sheffield, said more needs to be done to help workers in Sheffield and the wider South Yorkshire region.

He said: “There’s a strong consensus emerging that more could be done to support the economies of Northern cities – the Chancellor emphasised plans to build the Northern Powerhouse in his latest Budget speech.

“Sheffield has got a great deal going for it so a concerted effort by the local council, local businesses and our universities should help to deliver more rewarding and well-paid jobs.”

The residents of Esher in Surrey are paying the highest income tax bills of any town or city in the country, up eight per cent this year, from £15,700 in 2011/12 to £16,900 in 2012/13 – almost four times the national average.

The area is home to sports and entertainment stars such as Frank Lampard, Gary Lineker, Mick Hucknall and Chris Tarrant, with its average annual income being £59,600, over double the average UK gross annual salary.