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Public 'resentful about tax rises'

30 June 2008
Categories: News , Income Tax
But many don't know their tax band

Almost three-quarters of taxpayers are resentful about tax increases, even though more than half don't know into what income tax band they fall.

According to a new poll by Friends Provident, 81% of the population feel they are being charged more than they were five years ago, and 73% of people resent this.

The survey of more than 3,000 respondents discovered that more than two in five taxpayers (43%) put increases down to 'being squeezed by stealth taxes'.

Nearly two thirds said it is because of a general increase in the cost of living, while 24% put it down to changes in income tax brackets.

Council tax topped the Friends Provident poll in the category of most noticeable increase on tax, followed by levies on petrol and diesel, and road tax.

However, 56% of taxpayers said they didn't know which income tax band they fall under, just 17% knew the inheritance tax threshold, and one in three (33%) were unable to say how much they pay in council tax (33%).

Thirty-five percent of respondents were not aware of the UK's VAT rate.

Just over one third (36%) of the public questioned understood that the forthcoming rise in fuel tax will be by 2p a litre, and 37% were aware that 62p of every £1 spent on petrol is taken by the Government.

The new figures follow a paper released last month by campaign group the Taxpayers' Alliance, which claimed members of the public have fallen victim to 'vast increases in a range of up-front taxes, stealth taxes and cunning measures such as fiscal drag'.

Friends Provident's Peter Timberlake remarked: 'The UK public is feeling resentful about the fact that taxes are on the rise, yet many are still unaware of how much they are paying out in tax on a monthly basis.

'Nearly half of the people we spoke to have no intention of looking at whether they can reduce their tax bills.

'It is fair to say that the UK is feeling taxed by over-taxation, and we would urge people to review their finances to see if they can help better manage the tax they pay.'

Sections - income tax and NI

Categories: News , Income Tax
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