New personal tax statement for 24 million people
From October 2014, around 24 million people will receive a personal tax statement from HMRC detailing how their taxes were spent, the Chancellor George Osborne has announced.
This is 4 million more people than was originally announced at the Budget 2012.
The additional people are PAYE taxpayers who have had recent contact from HMRC setting out their tax calculation for a previous tax year.
The Government announced at the Budget 2012 that 20 million taxpayers will receive a new tax statement from October 2014. It will explain how their income tax and national insurance contributions for 2013/14 have been calculated, the average tax rates and where their money has been spent.
These taxpayers include:
- 8 million people who complete self-assessment returns online
- 16 million PAYE taxpayers who received a tax coding notice from HMRC in the 2013/14 tax year.
George Osborne hopes that the decision will lead to increased transparency in the tax system:
“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.”