Last year the government took 24,781. in tax for every household in the UK

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1 Last year the government took 24,781 in tax for every household in the UK

2 TAX FACTBOOK The TaxPayers Alliance 55 Tufton Street, London SW1P 3QL +44 (0) (24-hour media enquiries) taxpayersalliance the_tpa P roduced by the TaxPayers Alliance, July 2017 Designed by

3 Tax. One of the two things in life of which we can be certain. But how much is enough? We don t just pay tax on our wages and incomes. The Exchequer has a slice of almost everything we do. Every time we take a holiday, fill up the car, buy a drink or even purchase everyday essentials, politicians get a slice. Clearly, our tax system is no longer fit for purpose. The rates are too high; the rules too complex. I hope you can join our fight to change that. John O Connell Chief Executive, TaxPayers Alliance 1

4 Tax take under different chancellors 4,002 billion 3,423 billion 988 billion 1,505 billion 1,436 days Kenneth Clarke 3,708 days Gordon Brown 1,048 days Alistair Darling 2,255 days George Osborne nominal 2 SOURCE: OBR

5 How much tax revenue is raised centrally? Central Local 3 SOURCE: OECD

6 Income tax burden to pp change in income tax burden Income by percentile group 1% 5% 10% 25% 50% 50% 25% 10% 5% 1% Bottom 4 Top SOURCE: HMRC

7 Income vs. income tax burden Share of total income (%) 100 Share of income tax (%) % 5% 10% 25% 50% 50% 25% 10% 5% 1% Bottom 5 Top SOURCE: HMRC

8 Regional revenue (billions) SCOTLAND 54.9 UK NORTHERN IRELAND 15.9 NORTH WEST 61.6 NORTH EAST 21.5 YORKSHIRE AND THE HUMBER 46.9 WALES 24.7 SOUTH WEST 53.5 WEST MIDLANDS 48.9 EAST MIDLANDS SOUTH EAST EAST OF ENGLAND LONDON 6 SOURCE: ONS

9 Regional stamp duty receipts (millions) SCOTLAND 416 UK 11,106 NORTHERN IRELAND 55 NORTH WEST 495 WALES 155 SOUTH WEST 810 WEST MIDLANDS 470 NORTH EAST 150 YORKSHIRE AND THE HUMBER EAST MIDLANDS 340 SOUTH EAST ,765 2,110 EAST OF ENGLAND LONDON SOURCE: HMRC, REVENUE SCOTLAND 7

10 Net cost of tax policies (billions) + 56, , ,595-47,301 8 SOURCE: OBR

11 Real rates of income tax National insurance is another tax Basic 40.2% Higher 49.0% Additional 53.4% The real rate of income tax includes: Employer s NI Income tax Employee s NI 9 SOURCE: TPA

12 Government receipts (billions) Council tax Other taxes Other public sector taxes and receipts VAT Corporation tax Excise duties Income tax Stamp duties 16.1 National insurance 10 SOURCE: OBR

Most unfair taxes 59 Inheritance tax 22 51 51 48 BBC licence fee Tax on

Council tax 42 26 21 Income tax National insurance 55 56 21 Tax on alcohol

13 Most unfair taxes 59 Inheritance tax BBC licence fee Tax on petrol & diesel Stamp duty Air passenger duty VAT Council tax Income tax National insurance Tax on alcohol Tax on cigarettes and tobacco 70 Unfair % Fair 11 SOURCE: SOURCE: YOUGOV NAO

Tax take 1999-2017 (billions) 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07

14 Tax take (billions) nominal 12 SOURCE: OBR

15 Tax as a percentage of gross income Top 24.2% 10.1% Indirect tax as a % of gross income Household income by decile group 9th 8th 7th 6th 5th 4th 3rd 20.9% 12.9% 20.1% 14.3% 17.9% 15.6% 16.5% 17.1% 14.5% 17.7% 12.6% 17.3% 9.5% 19.8% Direct tax as a % of gross income 2nd 10.3% 20.6% Bottom 12.3% 29.8% SOURCE: ONS

16 Total lifetime tax prices per average household 823, SOURCE: ONS, TPA

Tax per household 2015-16 (by income decile) Direct Indirect 26,768 Top 11,129 13,510 10,617 7,724 6,119 4,418

17 Tax per household (by income decile) Direct Indirect 26,768 Top 11,129 13,510 10,617 7,724 6,119 4,418 3,241 2,023 1, ,306 7,570 6,736 6,370 5,384 4,453 4,218 3,818 1,348 Bottom 3, SOURCE: ONS

18 Beer and wine duty 5.56 VAT DUTY VAT DUTY 14% abv, 0.75l 4.5% abv, 1 pint 16 SOURCE: TPA

19 Rising cost of insurance premium tax 109 on average added to annual household bill SOURCE: COMPARETHEMARKET.COM 17

20 Quotes on tax the soundest way to raise revenues in the long run is to cut the rates now John F. Kennedy Nor should the argument seem strange that taxation may be so high as to defeat its object John Maynard Keynes I found it impossible to draft one [a wealth tax] which would yield enough revenue to be worth the administrative cost and political hassle Denis Healey new methods to enforce the collection have in vain been tried; the public expectation has been uniformly disappointed Alexander Hamilton 18 18

21 UK vs Hong Kong tax code UK 23,946 pages HK 512 pages 19 19

Driving CIOT members taxes vs road spending 18,500 2015-16 18,000

17,657 2015 16,000 15,500 15,000 14,500 15,388 2010 15,815 2011

22 Driving CIOT members taxes vs road spending 18, ,000 18, ,500 17,000 16,500 16, , , , ,000 15,500 15,000 14,500 15, , Number of Chartered Institute of Taxation (CIOT) members 14, SOURCE: CIOT

23 For further details and a full list of sources, please visit You can sign up to support the TPA for free by visiting Financial support for this factbook was provided by the de Laszlo Foundation, charity no

Distribution of tax burdens and benefit receipts

Research Note 140 22 December 2014 Distribution of tax burdens and benefit receipts The debate around taxation in recent years has often focused on whether or not different individuals and groups in society