HMRC Tax Summaries
Background
In the 2012 Budget the Chancellor, George Osborne, announced that all taxpayers would receive details of how their taxes are spent. According to the Government, over 24 million taxpayers will receive their first summary from today.
Taxpayers will be sent personalised statements containing pie charts showing exactly how much of their earnings are being spent on areas including the welfare, health, education and foreign aid budgets.
A person earning £60,000 a year will be told that broadly they pay the following:
1. £4,471 is spent on welfare
2. £3,442 goes to help fund the NHS
3. £2,399 on education
4. £2,210 on the state pension
5. £1,277 is spent on the national debt interest
6. £968 for defence
7. £538 on transport projects
8. £210 for foreign aid and
9. £138 to the European Union budget.
10. A further £2,583 is spent on business and industry, criminal justice, the environment, housing etc.
The summaries do not however include VAT, excise duties or council tax.
Self Assessment and PAYE taxpayer
The government will make summaries available online for 8 million self assessment taxpayers. A further 16 million taxpayers under Pay As You Earn (“PAYE”) who received a 2013/14 coding notice will receive a summary in the post over the next 7 weeks.
If you would like any further information or advice about reducing your tax liability, please contact our Tax Director, Jenny Marks.