It has been announced this week that millions of taxpayers will receive a new annual tax payments summary under a new scheme introduced by George Osbourne. This new scheme, which at least 30 million income tax payers adhere to, means they will receive an illustrative breakdown of where their tax money goes from HMRC.
Most tax summaries, as demonstrated above, will show that the biggest expenditure, which roughly accounts for a quarter of all spending, followed by health, education and then state pensions.
The Guardian published an example of what figures someone might be paying if they received such a summary, and we’ve summarised this below:
Eight million taxpayers who complete self-assessment returns will be able to access their tax summary online, while the 16 million PAYE taxpayers who received a tax coding notice from HMRC for 2013 to 2014 will receive their summary in the post over the next seven weeks.
Any taxpayer who does not receive a tax summary can use HMRC’s online tax calculator to estimate their tax bill and see how it contributes to public spending.