£603,697 - your lifetime tax bill
Monday, 21 November 2005 12:00
The average British household will pay £603,697 in tax over their lifetimes.
That is according to new figures from Axa, which calculates that those with higher earnings could end up paying well over £1 million.
In fact, a household with two earners under 30 would need to earn just £47,891 a year to pay over £1 million in tax over the course of their lives.
Axa calculates that, on average, British households hand over 35.5 per cent of their income to the taxman - with income tax and national insurance alone accounting for £311,507 over their lifetimes.
But as well as the money taken from your salary, indirect taxes also eat into your spending money.
An average British household will spend £108,122 on VAT, £25,294 on fuel tax, and £7,244 on vehicle excise duty, Axa calculates.
"These staggering figures demonstrate just how much the average Briton could spend in taxes - it's astonishing how the average British household will be paying more than £1 million in tax during their lives, and even the average family will contribute more than a third of their income to the Treasury coffers," said Mike Mumford, head of funds development at Axa.
He added: "Given the many competing demands made on our incomes, it is vital that Britons make what money they can save work hard for them and that they ensure they invest it in the right way to balance their needs for growth potential and security.
"We strongly recommend that people review their finances and talk to a financial adviser to ensure they are maximising their money and tax allowances to their best advantage."
Lifetime tax bill
- Income tax - £237,434
- VAT - £108,122
- Employees national insurance contributions - £74,073
- Council tax and Northern Ireland rates - £49,261
- Duty on tobacco - £16,963
- Duty on alcohol - £15,333
- Duty on hydrocarbon fuels - £25,294
- Vehicle excise duty - £7,244
- TV licences - £5,372
- Stamp duty on house purchases - £6,459
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