Impact of tax not understood by 4 in 5 UK adults

Four in five Britons unaware of how income tax affects pay

Tax Commission calls for 30% flat tax rate on income and capital

A new report by the 2020 Tax Commission says that a flat rate of 30 per cent tax on both income and capital will raise GDP over 15 years and end the UK's "punitive" tax system.
IFS sets out blueprint for UK tax reform

The Institute of Fiscal Studies has published the Mirrlees Review that sets out recommendations for the reform of the UK tax system including the merging of tax and National Insurance and replacing fuel duty with a congestion charge.

Tuesday, 08 March 2011 01:51

New research has revealed that four out of five UK adults do not understand how income tax affects their pay.

The study, conducted by YouGov on behalf of The Association of Chartered Certified Accountants (ACCA) also discovered that 84 per cent of people do not know income tax rates for different salaries.

Meanwhile, just 19 per cent of respondents realised that, after income tax has been deducted, a further 22 per cent of salaries goes towards taxes.

The survey also found that many people do not know what VAT applies to and what it does not, while fewer than half of those surveyed have checked their tax code with the HMRC.

"Although we can't necessarily control the amount of income tax we pay, I think many people would be surprised at the amount they can save just by understanding the tax system better," comments head of taxation at ACCA Chas Roy-Chowdhury.

Among UK residents, fuel tax was revealed to be the duty Britons would most like to see removed, according to research from unbiased.co.uk.

Impact of tax not understood by 4 in 5 UK adults

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