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Wednesday, 20 March 2013

Info Post
Via BobE, from Mail Online:

When most people think about tax, they think of income tax. This, largely, is taken directly from your pay each month, or through self-assessment tax forms if you are self-employed...

The article then goes on to list and explain the main taxes which people pay and summarises in this handy table:
I can see two big mistakes right there:

1. They missed off Employer's National Insurance, which is another £5,177.

2. VAT is on average at least 7% of people's gross earnings or total income (with a wide range, depending on whether you work for a VAT-able or a non-VAT-able business).

If you adjust for those two and treat Child Benefit as negative tax, the actual tax bill on Mr & Mrs Average is something like £22,600, i.e. half their total earnings. Which is hardly surprising, because the government spends/redistributes about half of GDP.

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