Approximately 90% of us pay more in taxes than we receive in welfare payments throughout our lifetime.
The Institute for Fiscal Studies (IFS) recently conducted research which suggests that around 9 in 10 of UK tax payers contribute more in tax than is received back from the state. Peter Levell, one of the authors of the report, said: “While over a third of individuals receive more in social security than they pay in taxes in a single year, this is true for very few when you look over an entire lifetime.”
Image via The Telegraph
The report also suggests that inequality could be lower when measured over the course of a lifetime as opposed to over a single year. The poorest tenth percent of the population spend as much as two thirds of their lives in employment, which means that it may be wise for the government to focus their efforts on improving in-work benefits in order to reduce inequality further.
Last month we covered the government's plans for the biggest programme of tax rises since the 1970s. With this change, it's best to be prepared if you're looking for investment opportunities.
Here are the tax-efficient investment allowances that you need to know about…
Since the pandemic, Britain's budget deficit has hit a peacetime high. This is a record reaching 4% of the gross domestic product in a year, due to COVID-related spending.
This has prompted the biggest programme of tax rises since the 1970s to help narrow the gap.
So, what happens next?
Perhaps you have a New Year’s Resolution to open a new savings account this year. With so many products on the market, it can be quite confusing when looking for the right savings account. The Money Advice Service have some tips on how to narrow your search for the right savings product...
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Your pension and ISA allowances remain two of the most effective ways to improve tax efficiency and protect your savings.
Here’s a simple, practical breakdown of how they work and how to make the most of them