Tax Factbook

  

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FRONT COVER - “Last year the government took £24,781 in tax for every household in the UK”

Methodology: total projected tax take for 2016/2017 DIVIDED BY total number of households in the UK for 2016: 671.3 billion ÷ 27.1 million = 24,781 (inconsistencies due to rounding)

Sources: OBR, Public Finances Databank, ‘Receipts (£bn)”

http://budgetresponsibility.org.uk/data/

ONS, Families and households in the UK: 2016, Table 2

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/families/bulletins/familiesandhouseholds/2016

PAGE 1 - Foreword.

PAGE 2 - Tax take under different chancellors

Methodology: Total National Accounts Taxes by tax year assigned to the Chancellor in power, then adjusted for the actual number of days they governed by working out a “per day” amount and multiplying it by the exact number of days they were in power.

Sources: OBR, Public Finances Databank

http://budgetresponsibility.org.uk/data/

PAGE 3 - How much tax revenue is raised centrally?

Methodology: Figures for 2015 expressed as a stacked bar chart for selected countries

Sources: OECD, Fiscal Decentralisation Database, Tax revenue, Table 9

http://www.oecd.org/ctp/federalism/fiscal-decentralisation-database.htm#C_5

PAGE 4 – Income tax burden

Methodology: Net change in each income percentile since 1999-2000 expressed in a bar chart

Sources: HMRC, Income tax liabilities statistics: tax year 2014 to 2015 to tax year 2017 to 2018, Table 2.4

https://www.gov.uk/government/statistics/income-tax-liabilities-statistics-tax-year-2014-to-2015-to-tax-year-2017-to-2018

PAGE 5 – Income vs. income tax burden

Methodology: Share of pre-tax income for 2015-2016 set against share of total income tax for 2015-2016 and expressed as a bar chart

Sources: HMRC, Income tax liabilities statistics: tax year 2014 to 2015 to tax year 2017 to 2018, Table 2.4

https://www.gov.uk/government/statistics/income-tax-liabilities-statistics-tax-year-2014-to-2015-to-tax-year-2017-to-2018

PAGE 6 – Regional revenue

Methodology: Data from the column specified below transposed onto a map

Sources: ONS, Country and regional public sector finances: Financial year ending March 2016, Table 3, 2015/2016 geographic share

https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/articles/countryandregionalpublicsectorfinances/2015to2016

PAGE 7 – Regional stamp duty receipts

Methodology: Data in sources below transposed onto a map

Sources: HMRC, Annual Stamp Tax Statistics 2015-16, Table 3.2, 2015-2016

https://www.gov.uk/government/statistics/uk-stamp-tax-statistics

Revenue Scotland, LBTT Statistics 01-04-16

https://www.revenue.scot/about-us/publications/statistics

PAGE 8 – Net cost of tax policies

Methodology: Net cumulative fiscal impact of all tax policy measures divided by the party in power, estimated for 2016-2017

Sources: OBR, Policy measures database

http://budgetresponsibility.org.uk/data/

PAGE 9 – Real rates of income tax

Methodology:

Employer's National Insurance is added at the rate of 13.8% on top of gross salary. So if you're paid another £87.87 of gross salary, the employer has to pay an additional 13.8%, which would be £12.13. That adds up to £100.

Basic: Employer's NI 13.8 % + Income Tax 20 % + Employee's NI 12% = 40.2%

Higher: Employer's NI 13.8 % + Income Tax 40 % + Employee's NI 2% = 49%

Additional: Employer's NI 13.8 % + Income Tax 45 % + Employee's NI 12% = 53.4 %

Sources: TaxPayers’ Alliance own calculations

https://www.youtube.com/watch?v=C9ZMgG9NiUs

PAGE 10 – Government receipts

Methodology: Data specified below expressed as a pie chart

Sources: OBR, Public Finances Databank, Receipts (£bn), 2016-2017

http://budgetresponsibility.org.uk/data/

PAGE 11 – Most unfair taxes

Methodology: Data in the poll expressed as a stacked bar chart

Sources: YouGov, reported in City AM

http://www.cityam.com/212005/inheritance-tax-seen-most-unfair-voters-all-parties

PAGE 12 – Tax take 1999-2017

Methodology: Data specified below expressed as a bar chart

Sources: OBR, Public Finances Databank, Receipts (£bn), National Accounts Taxes

http://budgetresponsibility.org.uk/data/

PAGE 13 – Tax as a percentage of gross income

Methodology: Total direct and total indirect tax expressed a percentage of gross income by income decile

Sources: ONS, The effects of taxes and benefits on household income 2015/2016

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/theeffectsoftaxesandbenefitsonhouseholdincome/financialyearending2016

PAGE 14 – Total lifetime tax (average)

Methodology: Total lifetime tax is calculated as a non-retired (working) household’s total direct and indirect taxes for 2015-16 multiplied by 44 years plus a retired household’s total direct and indirect taxes for 2015-16 multiplied by 15 years

Sources: ONS, The effects of taxes and benefits on household income, financial year ending 2016

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/datasets/theeffectsoftaxesandbenefitsonhouseholdincomefinancialyearending2014

PAGE 15 – Tax per household

Methodology: Data specified below expressed as a bar chart

Sources: The effects of taxes and benefits on household income, historical datasets – income, tax and benefit data by income decile for all households

https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/datasets/theeffectsoftaxesandbenefitsonhouseholdincomehistoricaldatasets

PAGE 16 – Beer and wine duty

Methodology:

BEER

Beer Duty – assume 4.5% alcohol, so in every pint (0.568 litres) there is 19.08 pence TIMES 4.5 EQUALS 85.86, so 85.86 per litre. There are 0.568 litres in a pint so 85.86 TIMES 0.568 EQUALS 48.77 so about 49 pence

VAT – 20% standard rate, assume 3.50 pounds for a pint, so 3.50 ÷ 1.2 = 2.92 which is the price excluding VAT, so 3.50 – 2.92 = 0.58, which is the VAT amount.

WINE

Wine Duty – assume 14% alcohol, so in every bottle (0.75 litres) there is 288.65 pence TIMES 0.75 EQUALS 216.49, so about 217 pence, or 2.17 pounds

VAT – 20% standard rate, assume 5.56 pounds for a bottle of wine, so 5.56 ÷ 1.2 4.63 which is the price excluding VAT, so 5.56 – 4.63 = 0.93, which is the VAT amount

Sources: TPA own calculations from rates

https://www.gov.uk/tax-on-shopping/alcohol-tobacco

Average price of beer from The Good Pub Guide 2016 reported in Business Insider

http://uk.businessinsider.com/where-to-get-the-cheapest-beer-in-the-uk-2016-9?r=UK&IR=T

Average price of a bottle of wine from the Wine and Spirit Trade Association quoted in the Guardian

https://www.theguardian.com/business/2017/jun/01/chateau-brexit-average-price-of-bottle-of-wine-reaches-record-high

PAGE 17 - Rising cost of insurance premium tax

Methodology: comparethemarket.com own calculations

Sources: Simon McCulloch, comparethemarket.com, quote in the Sun

https://www.thesun.co.uk/living/2995595/spring-budget-2017-predictions-will-premiums-go-up-thanks-to-planned-insurance-premium-tax-hike/

PAGE 18 – Quotes on tax

Methodology: N/A

Sources: N/A

PAGE 19 – UK vs Hong Kong tax code

Methodology: N/A

Sources: N/A

PAGE 20 – CIOT Members

Methodology: Figures extracted from CIOT annual reports except for 2010, where it was calculated on the basis of a given percentage increase

Sources: CIOT Annual Reports

https://www.tax.org.uk/about-us/annual-report

 

 

 

 

 

 

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