2.7% hike in average £800k lifetime tax bill

An average household will pay £826,030 in direct and indirect taxes over a lifetime, with the total increasing by 2.7% in 2014-2015 compared to the previous year, according to figures compiled by the TaxPayers’ Alliance (TPA)

The pressure group says in 2014-15, an average UK household had a gross income of £41,027. At this level of income it would take more than 20 years to pay their lifetime tax bill. This includes £169,371 of VAT, £107,045 of employee’s National Insurance Contributions and £65,068 of council tax.

TPA’s calculations indicate that over a lifetime, an average household in the top 20% by income will pay £1.68m in direct and indirect taxes, a 4.3% increase on the lifetime tax calculation for this group last year.  An average household within this group had a gross income of £86,768, and at this level of income would take more than 19 years to clear the bill.

John O'Connell, chief executive of the TPA, said: ‘Tax bills for households in every income group have gone up over the last year and that has obvious implications on hard-pressed families, already struggling with ever-rising bills.

‘If we are to start living within our means as a country the government simply must tighten its belt and take the task of finding savings seriously. With a new administration in place, now is the time to introduce radical reforms to our tax system and spending priorities to ease the pressure on ordinary taxpayers and boost economic growth.’

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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