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Poor households 'pay 47% of income in tax'

The poorest 10% of households pay almost half of their gross income in tax, analysis by a campaign group has claimed.

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Poor households 'pay 47% of income in tax'

Credit: Nick Ansell/PA Wire

The poorest 10% of households pay almost half of their gross income in tax, analysis by a campaign group has claimed.

The TaxPayers' Alliance research found that direct and indirect taxes accounted for an average 47% of the gross income of the poorest 10% of households, with VAT accounting for the biggest share of the bill.

The analysis of Office for National Statistics figures showed that the average gross income, including benefits, in the group was £9,743 but after tax the figure was £5,132.

The figures for 2012/13 showed that for the poorest 10%, some 13.9% of their gross income went on VAT, 7.2% on council tax and 5.6% on alcohol or tobacco duties.

The top 10% of households paid an average 35% of their gross income in taxes, some £37,287 a year, with income tax accounting for 19.1% of the money paid to the Exchequer.

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