24m to get personal tax breakdown

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%VIRTUAL-SkimlinksPromo%Around 24 million people will start receiving a personal tax breakdown from October so they can get a better understanding of how their money has been spent, Chancellor George Osborne has announced.

The Government said the statements, which will be sent out by HM Revenue and Customs (HMRC), are part of a wider drive to make the tax system more transparent and easier to understand.
The total number of workers who will get the statements is around four million higher than had previously been announced in the 2012 Budget.

The extra people are pay-as-you-earn (PAYE) taxpayers and this group includes people who have had more complicated or changing circumstances, such as a new job.

In the 2012 Budget, the Government announced that around 20 million taxpayers would from this October receive a tax statement 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.

The Treasury gave examples of what the statements might look like.

In one of these examples, someone with an income of £30,000 in 2013/14 would pay tax and national insurance contributions totalling £6,781.

Of this £6,781 pot, £1,529 would have gone on welfare and £1,257 on health. A further £1,019 would have gone on state pensions, £882 on education, £140 on culture, such as museums and libraries and £318 on criminal justice.

Meanwhile, £479 would have gone on financing national debt interest, £123 on the environment, £59 on the UK's contribution to the EU budget and £37 on overseas aid.

Mr 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."

There are 29.9 million income taxpayers in the UK. Any taxpayer who does not receive a tax statement can use HM Revenue and Customs' tax calculator to estimate their tax bill and see how it contributes to public spending.

This app can be downloaded free of charge from the Apple app store or Google Play by searching "HMRC tax calculator".

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24m to get personal tax breakdown

If you wear a uniform of any kind to work and have to wash, repair or replace it yourself, you may be able to reclaim tax paid over the last four years. For some people, this could mean a windfall worth hundreds of pounds

The interest you receive on savings accounts (with the exception of cash Isas) is automatically taxed at a rate of 20%.

Higher-rate taxpayers therefore tend to owe money on the interest they are paid throughout the year. If, however, you are on a low income or not earning at all, you should be able to claim all or some of the tax deducted back

You can apply for a refund of vehicle tax if you are the current registered keeper or were the last registered keeper of your vehicle that no longer needs a tax disc

If you pay tax on a company, personal or State Pension through PAYE (the system employers use to deduct tax from your wages), you may well end up overpaying

There is a limit to the amount you need to pay in NI, whether or not you work for an employer.

Instances in which you may find that you have overpaid include if you work two or more jobs and earn more than £817 a week and if you move from self-employment to employment, but continue to pay Class 2 National Insurance contributions


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