Downing Street has published a summary of the taxable income of Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Deputy Prime Minister Angela Rayner. These official records offer an insight into their earnings and effective tax rates for the tax year ending 5 April 2024.
According to the summary, Keir Starmer earned £152,255, comprising:
- £81,390 from his role as a Member of Parliament (MP)
- £49,193 as Leader of the Opposition
- £16,000 in other benefits
- £498 from self-employment
- £5,174 in bank interest
He paid a total of £54,718 in income tax, resulting in an effective tax rate of 35.9%.
By contrast, former Prime Minister Rishi Sunak paid £508,308 on an income of £2.2 million, which equated to a much lower tax rate of 22.8%.
Angela Rayner’s income totalled £85,205, including:
- £76,955 as base salary
- £8,250 in other benefits
She paid £21,514 in tax, making her effective rate just over 25%.
Rachel Reeves earned a similar base salary to Rayner, but also received:
- £12,372 from self-employment (including book royalties and audiobook fees)
- £2,367 in other benefits
- £64 in bank interest
Reeves paid tax at an effective rate of 26.3%.
These figures were officially published and are publicly accessible via the UK government website.
Why Does This Matter To You?
Understanding how effective tax rates work and how different types of income
are taxed can help you make more informed financial decisions. While most of us
won’t earn like a Prime Minister or Chancellor, we all have the same
obligations when it comes to filing our tax returns correctly and on time.
At Taxwise Accountancy, we are experts in self-assessment tax returns and
help individuals – including those with multiple income streams – to stay
compliant with HMRC while making use of any available tax reliefs.
If you’re unsure about your tax position or need help with your
self-assessment, get in touch with our team today.
