By Marcus Leach

New research has shown that taxes in the UK are the seventh highest in the world.

UK taxpayers pay more tax than those in USA and Japan, but fall well behind counterparts in France and Germany according to the research.

The tax regime in the UK is punishing those at both ends of the scale, as high and low earners are affected.

The report, compiled using data from nineteen major economies shows that the UK had the seventh highest tax for those earning less than £15,242 a year.

Accountancy firm UHY Hacker Young revealed that those earning a below-average wage of £15,000 in the UK keep just 83.2% of their pay, in comparison with 100% in Dubai - which has no income tax - 95.7% in Ireland and a fraction over 90% in the US and Japan.

The only leading economies to tax their lowest-earners more are Germany, France, India, Italy, Estonia and Mexico.

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