Around 24m people will receive a personal tax statement in October stating how their taxes were spent during the year.
The Government said the statements, which will be sent out by HM Revenue and Customs (HMRC), are part of a wider drive to make the tax system more transparent and easier to understand.
The total number of workers who will get the statements is around four million higher than had previously been announced in the 2012 Budget.
George Osborne, the Chancellor, said: “These tax statements represent a huge boost for tax transparency, showing people very clearly how much tax they pay and giving them a better understanding of where their money is spent.”
The statements will show how their 2013/14 income tax and National Insurance contributions were calculated, their average tax rates and how their taxes contributed to public expenditure.The Treasury has published examples of what the new statement will look like. An individual earning £23,000 would pay £4,541.76 in tax and National Insurance.
The sample table shows £1,024 was spent on welfare and £682 went towards state pensions. Some £40 went towards the EU budget.
Someone earning £60,000 pays £18,236.40 in taxes and National Insurance contributions, with £4,111 spent on welfare, £3,380 on the NHS and £2,740 on state pensions.
The Government announced the measure in the 2012 Budget, when it was stated that 20m taxpayers would receive a personal tax statement.
Today the Treasury announced that an extra four million letters would be sent out later this year.
The extra people are pay-as-you-earn (PAYE) taxpayers and this group includes people who have had more complicated or changing circumstances, such as a new job.
Overall there are 29.9m income taxpayers in the UK.
Any taxpayer who does not receive a tax statement can use HM Revenue and Customs’ tax calculator to estimate their tax bill and see how it contributes to public spending.
This app can be downloaded free of charge from the Apple app store or Google Play by searching “HMRC tax calculator”.
Source: www.Telegraph.co.uk on the 4 April 2014