Citizen or "Tax cow"?

sleepymans

I guess many of us sometimes feel less like a citizen and more like a "cash-cow" in respect of the tax we have to pay...

I love my country and wouldnt consider living anywhere else in the world, but I am getting increasingly cynical about the percentage of my family income that actually ends up in the government's coffers.

I am considering making 2014 the year when I actually log all the tax my household pays and comparing it with our income and finding the total we pay and therefore calculating the true percentage split between that and what we have left net of tax.

Has anyone any advice how I could be accurate in my calculations - without spending many hours a week on it!! I have only basic spreadsheet skills!;)

Obviously I can keep all my receipts for vat expenditure, I have payslips for income tax and NI, and I have been thinking about all the other costs and expenses that either include or have a tax element.

We are a couple, OH earns slightly less than the national average wage, I have a small pension in payment and work part time (full time rate would be similar to OH's pay)

We have no debts apart from our mortgage and roughly the same amount as that in savings, mainly ISA's.

So these are the things that we pay (too much) tax on!:
Household insurance tax
2 x motor insurance premium tax
2 x VED
Road fuel (too much as we live in a rural area with no public transport)
VAT on heating oil and electricity and emptying septic tank
Then the VAT on car repairs and servicing and all other adhoc purchases
VAT on cat food, confectionery and other standard rated supermarket buys
oh and loads more which I wont bother listing

To add insult to injury we have to pay some tax on savings not sheltered in ISAs:eek:

Has anyone done the calculation on their own situation?
What percentage would you guess the tax element would be? 20% is obviously too low, and although it FEELS like 50%, I guess it won't be that much....or is it??

le_loup

Too much time on your hands?

uknick

I assume you'll then deduct how much of your tax is spent on you to get a fair indication of your net contribution to the country.

zygurat789

These costs are what anyone has to pay, they are part and parcel of living. To take account of this your income is at the level it is, if your costs werenot so high then your income would be lower. It's called cost of living.

sleepymans

zygurat789 wrote: »

These costs are what anyone has to pay, they are part and parcel of living. To take account of this your income is at the level it is, if your costs werenot so high then your income would be lower. It's called cost of living.

I agree "anyone" does pay tax...but of course not "everyone" pays the same percentage of their income on tax.

I dont think it is just "the cost of living". To me the cost of living is what you pay for the goods and services you need to merely exist, it isnt really the amount of taxation the "Joe normal" pays.

What percentage of your income goes to the exchequer?

sleepymans

uknick wrote: »

I assume you'll then deduct how much of your tax is spent on you to get a fair indication of your net contribution to the country.

Maybe that would be interesting to examine, once I have a clearer grasp of the amount going TO the tax authorities.

Mind you with no streetlighting, hardly any road repairs, health services cut to little more A&E, fortnightly refuse collection (only one binful mind, or its left on the verge) One police car covering half the county during eves and weekends, state pensions which we each will have contributed to over 50 years work, private healthcare (needed as we dont get paid sickleave and have to avoid NHS waiting lists), never had a penny in benefits, (oops...untrue just got our first £200 winter fuel payment!), never had kids to be state educated.....I really do think we are net contributors....by a mile!

If we are lucky we might get 3 or 4 years state pension due to hereditary health issues.

I used to be proud to live in a country that took care of the vulnerable, sick, elderly and poor. I just feel the balance is wrong now - those of us in the squeezed middle are being shafted.

If we all knew how much tax we pay in total, I think we'd be less apathetic.

(Not accusing YOU of being apathetic;))

If its inevitable that I'm going to be a grumpy old woman it would be nice to have some facts and figures.

sleepymans

le_loup wrote: »

Too much time on your hands?

Maybe:)
(Whats your excuse?)

lincroft1710

sleepymans wrote: »

Mind you with no streetlighting, hardly any road repairs, fortnightly refuse collection (only one binful mind, or its left on the verge) One police car covering half the county during eves and weekends, kids to be state educated.....

The above are what your Council Tax payments go towards.

OK, so you pay too much tax, what are you going to do about it?

zygurat789

sleepymans wrote: »

I agree "anyone" does pay tax...but of course not "everyone" pays the same percentage of their income on tax.

I dont think it is just "the cost of living". To me the cost of living is what you pay for the goods and services you need to merely exist, it isnt really the amount of taxation the "Joe normal" pays.

What percentage of your income goes to the exchequer?

The cost of living is measured by an index CPI RPI, take your pick, which either directly or indirectly governs the income people receive.
If we lived in a low taxed country then our incomes would not be so high which is why Canadians and citizens of the USA are horrified at our prices.
If you go to a country with low taxation ie no welfare and few public services for your holiday you will enjoy the low prices you pay for items which would cost you a lot more back home.

Since most of my income now comes from the exchequer it is a case of "rendering unto Caesar that which is Caesar's"

sleepymans

lincroft1710 wrote: »

The above are what your Council Tax payments go towards.

OK, so you pay too much tax, what are you going to do about it?

Well, maybe look to ways of minimising the amount where possible, and maybe raise the issue with my MP, maybe encourage others to question the situation.

I wonder what will happen when the squeezed middle decide they have nothing to lose by opting out.

Yes I do understand what Council TAX goes towards.....it is however...a TAX and therefore part of my OP.

ceh209

It's already done for you:

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/10087413/Today-is-tax-freedom-day.html

(although based on the average person/family)