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.’