The government is set to launch personal tax statements this autumn in a move to make tax more transparent and send taxpayers an annual overview of their tax payments, detailing how their 2013/14 tax year income tax and National Insurance contributions have been calculated, their average tax rates and how this contributed to public expenditure
From October 2014 around 24m people will receive a personal tax statement from HMRC. The statements will be sent to 4m more people than previously announced at Budget 2012. The additional people are PAYE taxpayers who have had recent contact from HMRC setting out their tax calculation for an earlier tax year. These might be people with more complicated or changing circumstances such as a new job.
The Chancellor, George Osborne said: ‘These tax statements represent a huge boost for tax transparency, showing people very clearly how much tax they pay and giving them a better understanding of where their money is spent.’
The 20m figure is made up of the eight million taxpayers who complete self-assessment returns online and will receive their tax statement online, and the 16m PAYE taxpayers who received a tax coding notice from HMRC for 2013/14.
There are 29.9m income taxpayers in the UK. Any taxpayer who does not receive a tax statement can use HMRC’s tax calculator to estimate their tax bill. The free app can be downloaded from the Apple app store or Google Play by searching ‘HMRC tax calculator’.
Examples of the new tax statements, which will be sent out in October for the 2013/14 tax year, can be viewed here: http://bit.ly/Pp0o9U