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HMRC launches app to show taxpayers how their PAYE is spent

HMRC launches app to show taxpayers how their PAYE is spent

HMRC has launched a free tax calculator app to help taxpayers estimate how much they should be paying in National Insurance and income tax and learn how the government intends to spend the money.

The app is just designed for basic rate taxpayers who get paid through the PAYE system and don’t have any other source of income. This latest initiative is part of the government’s plan to send individual statements to all taxpayers about how much money different departments will get from their contributions. These statements will be issued as from 2014-15.

The app shows that somebody earning £25,000 gross per year would be paying £5,465.24 in PAYE contributions. That money is then divided between 14 departments with the welfare budget receiving the largest chunk at 33%.

Taxpayers can access the app from the HMRC website, or it is available for download from Google Play or the Apple Store.

Are taxpayers interested enough to make use of this app? The government is implementing the system to prove that the UK tax system is transparent and it is happy to tell us how our money is being spent. So far the app is very limited in that it is only designed for basic rate PAYE taxpayers and not those on the higher rate or people who are self-employed.

The app itself could be a useful tool for some, and of course it is free, but some might question whether we need both statements and apps to see where our money is going.

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Image: Dropbox by Johan Larsson

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