Financial burdens and the high threshold for feeling affluent: A breakdown of the 37 taxes and an exploration, in the This Money podcast.
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In a time when the question of whether £1 million still qualifies as wealth in Britain is being asked, it's worth taking a moment to consider the financial burden that the average household faces. According to recent figures, the total amount of taxes paid by the average household, including indirect taxes, is more than £16,700.
But that's not all. The total sum of taxes paid by individuals in the UK, including income tax, National Insurance contributions (NICs), capital gains tax (CGT), and indirect taxes like Value Added Tax (VAT), was approximately £209.6 billion for just the quarter April to June 2025. This quarterly figure includes income tax, CGT, NICs, and VAT, which are the main components of individual tax payments to HM Revenue & Customs (HMRC).
This means that the complete total of taxes paid by individuals in the UK, covering direct taxes like income tax and CGT plus indirect taxes such as VAT, amounts to hundreds of billions of pounds annually. The exact breakdown between individuals and businesses for VAT and some duties is complex, but major individual tax components are included within the £209.6 billion quarterly HMRC total.
The Government is currently considering introducing a wealth tax, which could further increase the financial strain on individuals. The podcast, This is Money, published weekly on the platform and various podcast platforms, such as Apple Podcasts, Spotify, and Amazon Music, is a valuable resource for those seeking expert answers to these financial questions.
In a recent episode, the podcast discussed a listener's inquiry about a potential strategy to reduce inheritance tax on £100,000 by giving £250 gifts to 400 people. Despite allowances being slashed, the take on capital gains tax is down, which may impact the Chancellor's plans.
The podcast also touches on various financial topics, including Nationwide's cash bonuses, spending habits with a lottery jackpot, Premium Bonds, Rachel Reeves' performance as Labour, the future of cash Isas, retirement with a state pension, and more. Users are encouraged to subscribe to the podcast and leave reviews if they enjoy the content.
As the discussion around wealth and taxes continues, it's clear that understanding the financial landscape is more important than ever. To learn more about taxes in the UK, including Capital Gains Tax and VAT rates, visit the Taxes for Expats guide and the Taxpayers Alliance and Tax Research UK websites. The podcast can be downloaded through the App Store for iOS devices and the Google Play Store for Android devices.
- Amid discussions about whether £1 million is still considered wealth in Britain, managing personal-finance becomes crucial, especially considering the average household pays over £16,700 in taxes.
- With the government contemplating the introduction of a wealth tax, it might be advantageous for individuals to investigate strategies for reducing taxes, such as gifting to reduce inheritance tax, as discussed on the podcast This is Money.
- To navigate the complexities of taxes in the UK, resources like the Taxes for Expats guide, the Taxpayers Alliance, Tax Research UK, and the informative This is Money podcast can be helpful in understanding topics like Capital Gains Tax and VAT rates.
