Last year the government took 24,781 in tax for every household in the UK
TAX FACTBOOK The TaxPayers Alliance 55 Tufton Street, London SW1P 3QL +44 (0)20 7998 1450 07795 084 113 (24-hour media enquiries) info@taxpayersalliance.com taxpayersalliance the_tpa www.taxpayersalliance.com 2017 P roduced by the TaxPayers Alliance, July 2017 Designed by www.nichecreativecambridge.com
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
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
How much tax revenue is raised centrally? Central Local 3 SOURCE: OECD
Income tax burden 1999-00 to 2017-18 pp change in income tax burden 10.0 8.9 8.5 8.0 6.0 5.7 6.4 4.0 2.0 0-2.0-4.0 1.9 0 0 0.1-0.1-1.9 Income by percentile group 1% 5% 10% 25% 50% 50% 25% 10% 5% 1% Bottom 4 Top SOURCE: HMRC
Income vs. income tax burden Share of total income (%) 100 Share of income tax (%) 80 60 40 20 0 1% 5% 10% 25% 50% 50% 25% 10% 5% 1% Bottom 5 Top SOURCE: HMRC
Regional revenue 2015-16 (billions) SCOTLAND 54.9 UK 682.3 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 42.4 65.8 136.6 SOUTH EAST 109.6 EAST OF ENGLAND LONDON 6 SOURCE: ONS
Regional stamp duty receipts 2015-16 (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 350 990 4,765 2,110 EAST OF ENGLAND LONDON SOURCE: HMRC, REVENUE SCOTLAND 7
Net cost of tax policies 2016-17 (billions) + 56,078 + 10,078 + 5,595-47,301 8 SOURCE: OBR
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
Government receipts 2016-17 (billions) Council tax Other taxes 34.8 30.5 42.2 Other public sector taxes and receipts 135.3 VAT Corporation tax 670.1 55.7 175.9 125.9 53.7 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 petrol & diesel Stamp duty 21 30 31 46 Air passenger duty 24 39 VAT 40 38 Council tax 42 26 21 Income tax National insurance 55 56 21 Tax on alcohol 63 17 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 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 671.3 556.2 500.2 372.9 0 100 200 300 400 500 600 700 nominal 12 SOURCE: OBR
Tax as a percentage of gross income 2015-16 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% 0 10 20 30 40 50 13 SOURCE: ONS
Total lifetime tax 2015-16 prices per average household 823,439 14 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 3,241 2,023 1,905 9 8 7 6 5 4 3 2 8,306 7,570 6,736 6,370 5,384 4,453 4,218 3,818 1,348 Bottom 3,274 15 SOURCE: ONS
Beer and wine duty 5.56 VAT DUTY 0.93 2.16 2.47 3.50 0.58 0.49 2.43 VAT DUTY 14% abv, 0.75l 4.5% abv, 1 pint 16 SOURCE: TPA
Rising cost of insurance premium tax 109 on average added to annual household bill SOURCE: COMPARETHEMARKET.COM 17
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
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 18,000 2016 17,500 17,000 16,500 16,697 2012 17,027 2013 17,358 2014 17,657 2015 16,000 15,500 15,000 14,500 15,388 2010 15,815 2011 Number of Chartered Institute of Taxation (CIOT) members 14,000 20 SOURCE: CIOT
For further details and a full list of sources, please visit www.taxpayersalliance.com/tax-factbook You can sign up to support the TPA for free by visiting www.taxpayersalliance.com/sign-up Financial support for this factbook was provided by the de Laszlo Foundation, charity no. 327383