UK Families Pay Too Much in Taxes, Cuts Needed

February 1, 2012 Taxation in UK

Family in UKThe average UK family will pay more than GBP 650 000 in taxes over its lifetime, with the amount ballooning to well over GBP 1 million for high earning families.

According to the report published on January 30 by UK Taxpayers’ Alliance, the members of an average UK family will pay more than GBP 656 000 in direct and indirect taxes over their lifetime, with over GBP 250 000 payments for income taxes, and an extra GBP 101 000 in Value Added Tax payments. Council tax and national insurance contributions were the next biggest liabilities faced by taxpayers.

The highest earning families in the UK will face cumulative tax liabilities of approximately GBP 1.3 million, while the families with the lowest earnings will see total obligations of GBP 235 000.

The results of the research are based on currently applicable rates of taxes and other fiscal contributions in the UK, and are calculated for an “average” family having a gross annual income of GBP 36,372, with a working lifespan of 40 years and an additional period of 15 years of retirement.

Commenting on findings, the director of the Taxpayers’ Alliance Matthew Sinclair, said that “…households in the UK now pay an incredible amount in tax over a lifetime, handing over a hefty slice of their income” and suggested that “… Chancellor needs to deliver a tax cut in the Budget, to ease the burden and help the economy to grow”.

Photo by Into Somerset