My tax bill – I can see clearly now…
If you have ever wondered where all the tax you pay goes, there is not much longer to wait. In October 2014, 24 million taxpayers will be receiving their first personal tax statement.
HMRC announced in April that this is an increase of four million over the number originally promised in Budget 2012. These statements will set out how much tax the individual has paid in the previous year and how it contributed to public expenditure.
HMRC have given an indication of how these will look (click here).
These statements are a welcome first step to transparency, but maybe there are a few further things to include in future versions:
1. Clear statement of the effective rate of tax and National Insurance. There may be some surprises for those who think their rate is just 20% and who have forgotten the impact of NI.
2. How this effective rate compares to other taxpayers.
3. The inclusion of child benefits, tax credits and other returns from the state could provide an indication of whether the taxpayer is a net beneficiary or contributor from/to the state?
It will be interesting to see the reaction to these statements once issued and how this new found information will impact on the election campaign, which is likely to focus on tax and the economy, and will be in full debate by October.
This was posted in Bdaily's Members' News section by Baker Tilly .
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