A huge amount of your money goes to the Government, and there are some taxes you are already paying – but you might not even know it. The UK tax burden is reportedly the highest it has been since World War Two.
Despite this, Labour is talking about taxes, and it might not be good news for taxpayers with multiple levies that could be hiked or added. Labour is reportedly in talks about introducing a wealth tax, which could see some have to pay even more. Households are putting aside more money than at any time in nearly two years, amid growing concern about the potential for future tax increases.
Figures from the Office for National Statistics show the savings ratio – the proportion of disposable income not spent – rose to 11.1% in the first quarter of 2024.
This is up from 9.3% in the final quarter of 2023 and marks the highest rate since the third quarter of 2021.
The increase comes as the Chancellor, Rachel Reeves, has pledged “iron discipline” over public finances and warned there is “no magic money tree”, saying: “Every commitment we make must be fully funded. That’s the approach I will bring to the Treasury.”
The average household pays £16,700 in direct tax on income, reports Daily Mail.
But taxpayers also pay a multitude of other taxes, from air passenger duty to environmental levies on energy bills. This means that the average household pays not £16,700 but £31,623.50, a huge tax rate of 57%.
There are currently 37 levies Brits pay, while some of these will be taxes you are familiar with from Income tax to National Insurance, others you might not be aware of.
For example, you pay a landfill tax, an aggregates levy, an apprenticeship levy and a diverted profits tax.
Full list of taxes you pay:
1. Income tax – £10,631 per average household
2. National insurance – £6,070
3. Value added tax – £6,025
4. Council tax – £1,768
5. Corporation tax – £1,448
6. Fuel duty – £869
7. Business rates – £880
8. Stamp duty land tax – £489
9. Capital gains tax – £460
10. Alcohol taxes – £436
11. Vehicle excise duty – £320
12. Insurance premium tax – £313
13. Tobacco duty – £279
14. Student loans repayment – £199
15. Customs duties – £173
16. Stamp duty on shares – £154
17. Air passenger duty – £148
18. Social and environmental levies on energy bills – £141 (electricity), £41 (gas)
19. TV licence – £133
20. Betting/gambling tax – £127
21. Emissions trading scheme – £127
22. Energy profits levy – £95
23. Climate change levy – £63
24. Bank levy – £46
25. Banking surcharge – £30
26. Penalties – £29
27. Digital services tax – £28
28. Electricity generator levy – £26
29. Landfill tax – £17
30. Apprenticeship levy – £14
31. Aggregates levy – £13
32. Soft drinks industry levy – £12
33. Plastic packaging tax – £10
34. Residential property development tax – £4
35. Diverted profits tax – £4
36. Carrier bags – £1
37. Economic crime levy – 50p
