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Author Topic: How much tax do you actually end up paying?  (Read 11071 times)

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The Prophet

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How much tax do you actually end up paying?
« on: June 02, 2012, 07:34:22 am »
The total rate will shock you.
The Tax Payers' Alliance has a tax buster app that lets you know how much you need to earn before buying an item. 
For example a person earning £60,000 a year buying a pair of £40 shoes, would have to earn £82, with 59% of this going in tax of one sort or another.

The HMRC has introduced an online calculator, which lets you know where your tax is being spent.
Around 33% is spent on welfare with a further 17% on health. 6% goes towards defence, 5% on "recreation culture and religion", and 2% on administering the government - all those MP's salaries and expense claims. 
Even more galling is that another 6% is used to pay the interest on the national debt.

Income tax and NI accounts for 43% of government revenues. Vat contributes 17%, business rates 4.5%, council tax 4.5%, corporation tax 8% and excise duties 8%.