REVEALED: Income in Peterborough significantly below the rest of the country, HMRC figures show

Family finances
Family finances

Taxpayers in Peterborough earn significantly less than those across the UK, according to newly-released figures from HMRC, despite the average income increasing by over £4,000 in five years.

Data for 2015-16 shows that the average taxpaying family (two adults) in Peterborough brought in £27,500 over the year, with some taxed on a combination of income from regular jobs, self-employment and pensions.

It means that the average total income for taxpayers in the area was 18% lower than the UK average of £33,400.

The HMRC data only includes those who pay income tax. As the tax-free personal allowance increased from £6,475 in 2010-11 to £10,600 five years later, an estimated 4,000 fewer workers were taxed in Peterborough in 2015-16.

With fewer people on lower paid jobs included in HMRC's most recent data, average earnings went up by £4,100 at the end of the five-year period.

Taxpayers in Peterborough paid an average £3,950 in income tax over 2015-16. With 88,000 people taxed in the area, it amounted to a total contribution of £350 million to government coffers.

The average income of taxpaying families in Peterborough was lower than across the East of England, where the mean was £35,000.

The majority of taxable income came from paid employment. In addition, 8,000 people paid tax on money earned through self-employment, including those who work for themselves full-time or who run a business alongside a main job.

The London borough of Kensington and Chelsea had the UK's highest average income, with 74,000 taxpayers making an average of £178,000.

In contrast, the lowest average income was in Blackpool, at £22,300.