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

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

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. 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 (31/07/2015)

 

2015-08-05T09:36:56+01:00