UK Income Tax and National Insurance

Income Tax and National Insurance - What are you really paying? is a new infographic video explanation from the team at See What You Mean that helps unravel the complexity of the UK tax system.

The UK’s taxes on people’s wages are needlessly complex and obscure. Produced with the team from See what you mean, the video highlights how National Insurance is a second income tax in all but name.

Previous YouGov polling for the TPA has shown that many people are not aware of how much tax they actually pay. The video makes clear the real rates of tax people pay when Employee’s National Insurance and Employer’s National Insurance are factored in.

Thanks to Richard for sending in the link!

Comments

[Marianne Wallson]

I have nothing to do with income tax actually (because I am not from UK) but what really catches my attention is how this video was made. I find it very effective and easier to understand. With cute designs and catchy ideas, this advertisement rules!

[Koena]

Very well illustrated post there. The video clearly shows how National Insurance is affecting the rates of taxes people actually pay. Good job! I am not from UK but this post really caught my eye.

[Jonathan banks]

National insurance and income tax are closely related. Nation's income depends on income tax. Governments of many companies gives relaxation in income tax when you buy a insurance cover.

[Income Tax]

I completely agree with the video! To be honest, I'd even consider the council tax a kind of an income tax, because at the end of the day, it does go to the government. And council tax is earnings-dependent, even though it may not seam to be that way. How many low-earners on benefits are actually paying council tax? While hard-working people are paying even £200/month in some areas of the UK...

I think if you also add all the tax that you are paying on items you are buying, from energy and alcohol, to clothes and other items, you might end up paying 60%-70% in tax from your earnings, which leaves you with 30%-40% from your earnings.

While large corporations (Google, Facebook, Amazon, etc) are paying 5% or even less in tax, due to their well thought tax avoidance schemes, also known as double Irish, and Dutch sandwich, Bermuda triangle, etc...

Where is the fairness in this world?