Taxpayers to receive breakdown of spending

Taxpayers will be sent an annual statement detailing how much tax they have paid and where the money has been spent, it has been revealed.

The statement will confirm how much money has been deducted for direct taxes such as income tax and national insurance, as well as outlining the proportions used for education, health and welfare.

It is hoped the move will help to make the UK’s tax system more transparent.

A Treasury source said: ‘It is quite right that people know how much tax they pay and what it is spent on.’

According to sample Treasury calculations, someone earning just over £25,000 would pay £5,700 in direct taxes.

Of that, more than £1,900 would go on welfare and pension payments, nearly £1,000 on health and £750 on education. £360 would also be spent on national debt repayments.

The plans, due to take effect in 2014, are expected to be included in Wednesday’s Budget.

Please visit our website for all the latest Budget announcements.

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We are a firm of Accountants based in Harrow, Middlesex offering tips and tax advice to help sole traders, individuals and businesses in the UK grow. We'll also keep you up-to-date with the latest tax news hitting the headlines! We hope you find our blog helpful and appreciate any feedback.

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We are a firm of Accountants based in Harrow, Middlesex offering tips and tax advice to help sole traders, individuals and businesses in the UK grow. We'll also keep you up-to-date with the latest tax news hitting the headlines! We hope you find our blog helpful and appreciate any feedback.

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