The report highlights the lack of awareness among UK adults about the impact of additional taxes on their take-home pay. The survey revealed that 81% of UK adults are unaware about the true extent of their tax bill. Only 16% of UK taxpayers could correctly identify the amount of income tax paid on salaries of £20,000, £50,000 and £200,000. The report suggests that there is a great deal of public confusion around the taxation system, which is understandable given the constantly shifting policies in this area. The Government has discussed the possibility of merging NICs (National Insurance Contributions) and income tax, but there will be a number of caveats to make this viable for different sections of society. The proposed merger would make the tax system more transparent, but taxpayers are unlikely to like what they see. When combined, the basic tax rate would move to over 30%, while the top rate of tax would be 52%. This total tax dedication will seem daunting to many workers. The report suggests that people can manage their tax bill better by making small changes to their everyday lifestyle and purchasing decisions.
