Jack Bailey

How much are entrepreneurs taxed in the UK? According to a recent independent research paper by the Tax Payer’s Alliance, it is over 85%. This is because when entrepreneurs earn, they often exceed numerous tax thresholds, save and invest their earnings, and ultimately pass them on to their family. As a result, the same money is taxed repeatedly before it is ever spent, leading to an exceptionally high marginal tax rate. The tax burden on entrepreneurs and their family because much higher when Labour reduced business relief from inheritance tax from 100% to 50%. The TPA research reveals just how brutally the system is stacked against those trying to build something and create jobs in the UK — and the numbers are staggering. If you’re an entrepreneur in the UK, you could end up paying up to 93% in taxes on what you build 😳. Which means: ➡️ If your business earns £100, your family could be left with as little as £10 after taxes. Here's where it all goes: 💰 Income Tax 💰 National Insurance 💰 Corporation Tax 💰 Capital Gains Tax 💰 Inheritance Tax 💰 VAT The TaxPayers' Alliance highlighted that: 🔺 Best-case scenario (with smart planning): 83.5% tax 🔺 Worst-case scenario: 93.1% tax That means after putting everything on the line — the long hours, the sleepless nights, the personal sacrifices — you and your family are left with barely 10p for every pound you generate. The TaxPayers' Alliance report lays out the devastating impact this is having on our economy: ➡️ New firms — responsible for most net new job creation — are disappearing at an alarming rate. ➡️ The number of UK businesses has dropped by 11% since 2020. ➡️ The fear of failure among entrepreneurs has risen by 60% in the past two decades. Meaning more and more would-be founders are being put off from even starting. The message is clear: Founders are giving up. And honestly — seeing the numbers it's hard to blame them when you’re expected to put your home, your savings, and your family’s future on the line — only to keep 10% of what you’ve built. If the UK wants to rebuild its economy, we need to create an environment where entrepreneurs can thrive. That means: ✅ Tax stability: Entrepreneurs need certainty. A long-term commitment to stable tax rates would encourage investment and risk-taking. ✅ Growth-focused reforms: Expanding business rates relief and improving capital gains incentives would give founders the breathing room they need to grow. ✅ A reduction in the overall tax burden: Entrepreneurs need to know that their efforts will be rewarded — not swallowed by endless taxes. We need to fix this. Massive credit to the @the_tpa for compiling such an important report — if you want to dig deeper, you can read the full report here: lnkd.in/g2BibhX8