What people in the UK really earn

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Research has shown most people have little clue how income is distributed in the UK. In particular, the wealthiest think they are worse off then they are and many on what is called 'middle income' do not realise that they earn much ore than 'middle'.

Latest data from HMRC, just published, emphasis this. I have reduced their table to the most recent year for which information is available, which is 2012-13:

Screen Shot 2015-01-30 at 11.25.12

 

A decile is 10% of taxpayers. People who are not taxpayers are not in this table, so it overstates average incomes.

Half of people in the UK in 2012-13 had declared taxable income (I make the point carefully) of £21,000 or less. Having income of £49,200 put a person in the top 10% and £150,000 or more, unsurprisingly, in the top 1%.

To emphasis the point median income by year looks like this:

Screen Shot 2015-01-30 at 11.30.50

There is  no doubt that the UK needs a pay rise.