From this week, income tax payers have been sent personalised tax summaries, showing their taxable income, the tax and national insurance deducted, and how these are calculated. On the reverse is an illustration of how the government has decided to spend that money. There is no need to take any action when you receive one of these summaries (unless you think it’s wrong; see below) but the following notes are worth bearing in mind as you reflect on how your taxes were spent.
If you have a tax return and this is filed online, the same summary of information will be available on the web once your tax return for 2013/14 is filed. If you don’t file a tax return, you can expect to receive a paper copy in the next few weeks – these are being sent out in batches. Don’t worry if you haven’t got one today – it doesn’t (yet) mean you’ve been missed out.
The information is historic – the allowances and rates of tax are from 2013/14 – so don’t spend time wondering why the personal allowance quoted doesn’t agree to your current tax code; it’s not likely to. Also you’ll see that although the tax calculation is broken down, the national insurance calculation is not. This is due to the complexity of the calculation – it’s not really possible to summarise this for a lot of people.
Although no action is required when you receive the illustration, if you don’t understand the overall income or tax figures quoted, then please get in touch to go through them with us. If however you have a question about how much of your money was spent in a certain government department, we’d have to direct you elsewhere – there are some things we can’t control…