Average household taxed £1m in a lifetime

The average British household will pay more than £1m in tax over their lifetime, new Taxpayers Alliance research suggests, with the typical lifetime bill coming in at £1.1m. The study, which is based on Office for National Statistics data, found that average households are set to pay almost £180,000 in employer and employee National Insurance contributions over a lifetime, even before the increase in National Insurance set to come into force in April. This is alongside nearly £480,000 in income tax and £190,000 in VAT. The lifetime tax bill for the top 20% of households, or families with an income of £137,669, would be £2,573,815 in direct and indirect taxes, which would take them 19 years to pay off. For the bottom 20% – families with a household income of £19,171 – they will work for almost 24 years to pay off their lifetime tax bill, the longest of any group. John O’Connell, chief executive of the TaxPayers’ Alliance, said: “With the tax burden at a 70-year high, typical families are now tax millionaires.” He added: “Taxpayers already toiling half their working lives just to pay off the taxman cannot be asked to endure any further crippling tax hikes. Planned rises, like the National Insurance hikes, must be scrapped.”

 

 

The Times

Related Post

Reeves urged to abolish the £175,000 residence nil-rate band The Chancellor is facing pressure to eliminate the £175,000 residence nil-rate band in her upcoming Budget. Rachel Reeves previously argued that this allowance, which costs around £2bn annually, primarily benefits the wealthy and now the Resolution Foundation is pushing her to scrap it. In 2011, she stated: “Raising the inheritance tax limit to £1m for […] By Lisa Brownlow, 18 September 2024
Read Now
Small firms responsible for 80% of tax evasion Analysis by the National Audit Office (NAO) shows that small firms are responsible for more than 80% of tax evasion. The report cites HMRC estimates that £5.5bn was lost to deliberate tax evasion in the 2022/23 financial year, with small businesses responsible for 81% of the total. Despite a reduction in the overall tax gap […] By Lisa Brownlow, 16 September 2024
Read Now
Threshold freeze creates 4.4m more taxpayers The number of people paying income tax has increased by 4.4m in three years due to the freeze on thresholds, according to HMRC data. The figures also show that the decision to freeze the personal threshold at £12,570 has pulled an additional 1.77m pensioners into the income tax bracket. There are currently an estimated 37.4m […] By Lisa Brownlow, 3 July 2024
Read Now
↑