You are here: Home - Household Bills - News -

Revealed: Britain’s most expensive taxes

0
Written by: Danielle Levy
24/04/2019
HMRC took in £622.8bn during the 2018-19 tax year, representing a £29bn increase on the previous year. Find out which personal taxes made the biggest contributions to this sum…

You may not be surprised to hear that income tax currently represents Britain’s most expensive personal tax, in spite of the rise in the personal allowance. It accounted for £190.5bn of the government’s tax take during the 2018-19 financial year.

National Insurance is the UK’s second priciest tax, providing the taxman with a total of £137.2bn. It was followed by VAT, which took in £131.7bn.

Capital gains tax accounted for £9.2bn of the government tax take. Nevertheless, this was up £1.5bn over the year.

In addition, insurance premium tax raised £6.2bn. Investment platform Hargreaves Lansdown notes that its contribution has doubled since the 2014-15 tax year.

Elsewhere, the UK’s sugar-lovers contributed towards the £240m, which came in from the soft drinks tax.

Stamp duty land tax was the only major personal tax to drop during the year, partly as a result of changes to stamp duty for first time buyers.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “The taxman would make the world’s most irritating dinner date. Everything you do – from earning a crust to forking out a fortune on the high street – the taxman takes a huge bite for himself.

“Over time, those bites are getting bigger: the income tax bill is £27bn more than it was four years ago, and the VAT bill has climbed over £20bn.”

Her parting advice is to make sure you are not paying more than your fair share of tax.

“It’s essential we take advantage of as much of our allowances as we can, from ISAs and LISAs to pensions. So you can enjoy the fruits of your labours, without the taxman taking a bite.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week