Card (Debit/Credit): £ 1,000 bn
BACS. £ 5,630 bn
CHAPS. £87,500 bn
£98,330 bn
FPS and SWIFT are not included as I could not find hard figures regarding them.
Only the big 4 (Income Tax, NIC, VAT, Corporation Tax) are calculated. Smaller receipts were not included.
| Year | APT receipts | IT | NIC** | VAT | CT*** | Total | ||
| BR | HR | AR | ||||||
| FY2024 | – | 79.3 (20%) | 89.0 (40%) | 117.6 (45%) | 177.0 | 165.5 | 89.6 | 718.3 |
| 1 **** | 188.3 (0.1%) | 69.3 (17.5%) | 77.9 (35%) | 103.0 (39.4%) | 177.0 | 136.5 (17.5%) | 73.9 | 825.9 |
| 2 | 376.5 (0.2%) | 59.6 (15%) | 66.8 (30%) | 88.2 (33.8%) | 177.0 | 124.1 (15%) | 67.2 | 959.4 |
| 3 | 564.8 (0.3%) | 39.7 (10%) | 44.5 (20%) | 58.8 (22.5%) | 131.1 | 82.8 (10%) | 44.8 | 966.5 |
| 4 | 753.0 (0.4%) | 19.8 (5%) | 22.3 (10%) | 29.4 (11.5%) | 88.5 | 41.4 (5%) | 22.4 | 976.8 |
| 5 ***** | 941.3 (0.5%) | 0.0 (0%) | 0.0 (0%) | 0.0 (0%) | 0.0 | 0.0 | 0.0 | 941.3 |
* All values are in Billions.
** NIC are estimated due to both employers and employees
*** Corporation Tax is a sliding scale with hard numbers difficult to come by.
**** While greater tax cuts could be implemented in the first year, the expected surplus can be held for any fiscal shocks to the system and to start paying down the national debt.
***** 0.4% covers the current receipts of 718.3 an additional 0.1% can cover other expenditure.
In the first year:
the 0.25% tax on shares will be scrapped.
Inheritance tax will be phased out over the 5 years.
Examples
- Alice passes away in Y2. She is survived by her 2 children (Sarah and Teresa), and 3 grandchildren, her husband Bob passing away several years earlier. Alice lives in a 2 bedroom bungalow after they downsized many years ago. The bungalow is worth £210,000. She has additional assets in cash and items totalling £50,000.Sarah would like one of her children to move into the bungalow. The transfer of the bungalow from Alice to the grandchild will cost the child £420 in tax and the same amount from Alice’s estate (49,580). Sarah pays her sister £105,000 for her share of the house. The transaction tax costs them both £210. The cash and assets distributed between the sisters cost £99 for both sides.
- Callum is a middle manager earning £40,000 a year in Y1. Income Tax and NIC takes £1,033.32 from his monthly gross of 3,333.33. The payment of his salary incurs a £2.30 tax to him (and his employer). In a month he spends £800 on a mortgage, £200 on food, £200 payments on a car, £100 on fuel, £200 on utilities and a further £200 in discretionary spending. This spending costs him £3.40.
- David is a CEO in Y3. He has a large stock portfolio, owning some directly, some are held in an online brokerage and some of which come from US companies. The shares pay out dividends.
- Eric has a Cash ISA in Y4 which he transfers £100 a month into from his general bank account. The transfer costs him £0.40 to do. The ISA does not pay anything.
- Frank retires in Y5. He has a Cash ISA from which he takes £200 a month to help towards living expenses. That transaction costs him £1.00. The ISA does not pay anything.
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