Brits taxed by over taxation

The UK population is resentful about tax increases according to new research from Friends Provident. In a poll of more than 3,000 people, the FTSE 100 life and pensions company found that 81 per cent of people feel they are paying more tax than they were five years ago and that 73 per cent of them resent this.

With a recent report showing that the UK tax burden has risen by 76 per cent in the last 10 years (‘even when adjusted for inflation, the real increase was still a whopping 50 per cent'), the research from Friends Provident found that more than two in five people (43 per cent) put the tax increases down to being squeezed by stealth taxes. Nearly two thirds (60 per cent) said it is because of a general increase in the cost of living, while one in quarter (24 per cent) put it down to changes in income tax brackets.

The research found that council tax topped the poll of the most noticeable increase on tax for 64 per cent of people, followed by taxes levied on petrol and diesel (58 per cent) and road tax (45 per cent). And while headlines focus on the forthcoming rise in petrol tax in October, just over one third (36 per cent) of the public questioned could identify it will increase by 2p a litre and just 37 per cent know that when they spend £1 on petrol, the Government takes 62p of it in tax.

More than half of those questioned (56 per cent) don't know which income tax band they fall under according to the research. Just one in six (17 per cent) knows the Inheritance Tax threshold and one in three doesn't know how much they pay in Council Tax (33 per cent) - or even the rate of VAT in the UK (35 per cent).

Peter Timberlake, head of public relations at Friends Provident said: "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. And nearly half of the people we spoke to have no intention of looking at whether they can reduce their tax bills.

"Just five per cent of those asked said they have opted for the salary sacrifice option on their work pension to help manage tax, but many more people could do this and make a significant difference to the amount they receive when they retire. It is fair to say that the UK is feeling taxed by overtaxation and we would urge people to review their finances to see if they can help better manage the tax they pay."