Taxpayers will now receive tax breakdown letters
03/11/2014
From this week millions of taxpayers will start to receive details of exactly how their money is being spent by the government.
The initiative was announced in 2012 by Chancellor George Osborne when the government said it wanted to start a “revolution in transparency”. The letters will show how much tax and national insurance the individual has paid, as well as a breakdown of where it was spent- for example; welfare, transport, health and education. The Chancellor said:
"It's about people getting information
"This is about people knowing where their money is going and how much tax they're paying.
"I think it is going to help as a country the debate we have about living within our means."
The initiative does have its objectors. The Trades Union Congress (TUC), a national trade union centre representing the majority of trade unions in the UK, has said that the scheme is propaganda, and that the government was trying to soften the electoral up for further cuts. A spokesperson for the TUC said:
“The letters are party political propaganda masquerading as neutral information
"The chancellor is relying on the fact that many people think spending called welfare all goes to the unemployed”
The letters show that 24.5% of government spending goes on welfare payments.
There are almost 30 million taxpayers in the UK, and those who do not receive a summary can use HM Revenue & Custom's tax calculator to get similar information, the Treasury said.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Billy Bragg threatens to withhold his UK taxes
Singer, songwriter and political activist Billy Bragg has today threatened to withhold his UK taxes unless the UK government acts to curb the spending plans of Royal Bank of Scotland. There is a suggestion that Royal Bank of Scotland, 84% owned by the UK taxpayer, is ready to pay out £1.5 billion in bonuses this year at a time when UK taxpayers are still feeling the pinch and many are still losin...
Read MoreAlistair Darling fails to pacify the TUC
Some said he was brave, others said he was stupid but whatever the reason for Alistair Darling's show at the Trade Union Conference in Brighton today it did not go down very well. However, while he stuck to the official line that pubic sector pay awards had to be in line with the government's target - which is well below the current rate of inflation - he did indicate that moves may be afoot to t...
Read MoreGovernment wins alleged tax avoidance case
The UK authorities are today celebrating a potentially massive win in the courts when a judge ruled that retrospective tax legislation regarding offshore tax avoidance schemes was not against the human rights of those involved. The case centred round a self-employed IT contractor who was hit with a £100,000 tax bill by the UK authorities relating to income received through an offshore tax scheme....
Read MoreThe real cost of MPs standing down
As the number of MPs standing down at the next election, in the wake of the MP's expenses scandal, reaches 12 the Independent newspaper has produced an interesting article on the cost to the taxpayer. Very few people be aware that the 12 MPs who have decided to stand down at the next general election will each receive golden goodbyes worth a combined £1 million between them.
Howeve...