Average family pays £730,000 in tax over a lifetime

News Update from CFM (UK) Ltd: New research has found that families face a bill of more than £730,000 in direct and indirect taxes over their lifetime. The data shows that the household pays more than £250,000 in income tax, £146,775 in VAT, £92,795 in NICs and £59,955 in council tax over 55 years. According to the research, conducted by the Taxpayers’ Alliance, in total families will each pay an average £734,240 in taxes, up 2.3% from last year. This is equivalent to the total income of an average household over 19 years.

Jonathan Isaby, the TPA's chief executive, said: “The new analysis shows just how heavy the burden of taxation falls on each and every family across Britain, pushing up the cost of living. Every arm of local and central government must redouble its efforts to root out unnecessary spending and inefficiency." The study found that households in the bottom 20% of earners will have to pay £282,545 in direct and indirect taxes, while those in the top 20% will pay £1.48m. While the wealthiest families have had a 2.2% cut in their lifetime tax bill since last year, the poorest households have seen a 4.1% increase in this bill since 2013/14. The figures are based on current taxes applied over a working lifetime of 40 years and 15 years of retirement.

The Times, Page: 16   The Sun, Page: 26   Daily Express, Page: 22   Daily Mail, Page: 22   The Daily Telegraph, Business, Page: 2   Independent i, Page: 22

Posted on July 31st 2015

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