At Budget 2012, Chancellor George Osborne announced that 20 million people would be sent personal tax statements in 2014/15.
The statements will show how much tax and NIC an individual has paid and calculated in 2013/14 year, their average tax rates and how this contributed to public expenditure. This is all part of the government’s wider plan to make the tax system simpler, easier to understand and more transparent.
In a recent announcement however the Chancellor confirmed that 24 million taxpayers will now receive statements from October of this year. These are comprised of the 8 million taxpayers who complete Self Assessment tax returns online and thereby will receive their tax statement online, and 16 million individuals who received a 2013/14 PAYE coding notice from HMRC.
The additional 4 million people who are also to receive tax statements are PAYE taxpayers who have recently been issued with tax calculations for an earlier tax year and who may have more complicated and changing circumstances.
There are nearly 30 million taxpayers in the UK and anyone who does not receive a tax statement can use the app ‘HMRC tax calculator‘ to estimate their liability and see how it contributes to public spending. This can be downloaded free of charge from the Apple app store or Google Play.
Speaking of the new tax statements, 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.”
Examples of what the new tax statements will look like can be viewed by visiting the Examples of the new tax statements Flickr page.