Over half of taxpayers do not know how much income tax and National Insurance they pay in a year, research finds.

The Government has launched a new tax calculator enabling people to work out how much tax they pay and how the Government spends it. The tax calculator can be downloaded as a free mobile phone app and is also available on the HM Revenue & Customs (HMRC) website.

The launch comes as new research reveals that over half of taxpayers do not know how much income tax and National Insurance they pay in a year, suggesting that many people find the personal tax system remote and confusing.

The new calculator uses online technology, makes it easy for taxpayers to see how much they can expect to pay and is an important step towards achieving the Government’s vision of making the system more transparent, open, and easier to understand.

The research was carried out as part of the Government’s consultation on ways in which people could more easily access information on their personal taxes.

It found that although 70 per cent of those who receive bank statements said that they always check their transactions, however just 26 per cent of taxpayers are as thorough in checking how much tax they have paid, and only 10 per cent would be able to put an exact figure on it, if asked.