The most recent data concludes that the top 1% of earners in the UK are earning £207,000 a year pre-tax income. This translates into £16,750 a month or £3,865 a week.
Whilst these numbers are enormous these earners fall into the UK’s higher tax brackets meaning they pay 40% of earnings above £50,271 and 45% income tax on earnings above £125,140.
That’s a lot of tax!
Income inequality in the UK is rife. The top 1 percent of income earners are nearing the high six figures.
Discussing these numbers can be difficult for some when the Office for National Statistics reports the average national income in the UK sitting at £32,000 for all workers.
The median for full-time workers is now around £39,039 depending on the source/measure.
That being said, to reach these levels you will need to be in a job that requires an enormous level of stress.
When I think of these numbers my mind immediately drifts towards bankers racing about in their Aston Martin, but interestingly that’s not the only sector that pays these kinds of numbers.
Stick around as we unpack the top 1% of earners in the UK.
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What is the distance between the top 10% and the top 1%?
›The distance between the top 10% and the top 1% is just wild. To be in the top 10% of earners data shows you need to earn £67,400 according to the HMRC’s latest statistics.
That’s a £139,600 difference between the top 10% and the top 1%.
Interestingly once you hit £100k salary a year this bumps you up into the top 4% of earners in the UK.
These numbers show that to reach the top one percent of income in the UK you need to make an enormous jump in salary from the top 10% or even the top 5%.
This data makes for stark reading but if you’re looking at this thinking I want to get into the top 1% these are the levels you need to be hitting.
Below we show the income distribution levels in the UK.
How much is £201k after tax?
A £207,000 salary after tax leaves you with around £9,706 a month as net income – this is after you have paid £6,194 in income tax, £513 in national insurance contributions and assuming £838 for a pension too.
In total, this is around 43.7% of your total income.
When you’re paid these levels which is a hell of a lot of taxable income.
You can see just what this looks like with a take-home pay calculator:
As you can see UK earners pay a lot of tax when you reach the higher levels.
Income tax payers are hit with a 20% tax increase in earnings above £50,270.
The UK Tax Brackets currently sit like this:
These numbers are reviewed every tax year and so are subject to changes based on the latest budgets set out by the Chancellor and HMRC.
The UK’s highest earners are taxed more simply because they can afford it and the government can rake in more than half of the basic rate taxpayers once you reach the additional rate.
The key to note is your earnings under the £50,270 aren’t taxed at 40% it’s everything you earn over that threshold which you can see from the breakdown of the £201k salary below.
What jobs pay £201k or more?
Jobs that earn £201k aren’t as hard to find as you might think.
Going back to my visions of bankers in their 3-piece suits and big cars isn’t wrong but interestingly, there are lots of sectors that pay this kind of money.
From our research, though these salary levels aren’t just managers, they are specialists in their fields.
Some of the roles we have found are:
- Cardiac Physiologist
- Echocardiographer
- Hair Transplant Doctor / Surgeon
- Quantitative Developer
- Lead App Developer
- Private Dentists
- Associate Attorney
Alongside these roles there are of course your standard Presidents, CEOs, Vice Presidents, CFO, Technology Officers and Sales Directors.
These ranged from companies in tech, recruitment, banking, healthcare, insurance and more.
Interestingly when looking at the average salary in the UK we see a vast amount of these higher-paying roles in London.
A good salary in London differs to the other areas of the UK so if you want to be paid the big bucks then London is certainly the place to be.
Income disparity
The income disparity in the UK is not just a gap; it’s a chasm. While the top 1% earn around £207k annually, the national average income hovers around £39,039 for full-time workers.
That’s more than a five-fold difference.
This glaring inequality is more than just numbers on a spreadsheet; it’s a socio-economic divide that separates society into different worlds of opportunity, stress, and lifestyle.
Picture this: the top earners could be contemplating which luxury car to add to their collection, while the average guy might be losing sleep over making ends meet.
This income gulf raises critical questions about social mobility, fair taxation, and the kind of society we want to live in.
Frequently asked questions
What is the top 5% of income in the UK?
The top 5% of income in the UK currently sits at around £93,700 or above (HMRC SPI 2023/24). These numbers are a big increase from the national income average of £39,039. These roles are senior management levels or specialists in their fields and require training, degrees and experience to reach.
What is the top 99th percentile in the UK?
The top 99th percentile in the UK is currently £207,000 a year. Anything at this level and above will put you in the top 1%.
What is the top 0.1% of income in the UK?
The top 0.1% of income earners in the UK currently sits at around £800,000 per annum pre-tax income (approximate, based on IFS interpolation of HMRC SPI data). These levels are reserved for CEOs, VPs and high-level specialists in their fields.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
