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PAYE taxpayers have been offered an online tool that estimates the amount of income tax and National Insurance (NI) contributions a user can expect to pay on his or her income.
The Revenue's new tax calculator ― which comes three months after Taxation's similar offering ― also displays how a person's taxes are spent by the government. The results, which do not take into account capital gains tax or any other levies, are not legally binding, nor are they a demand for payment.
They may not match, pound for pound, the tax and NI shown on a taxpayer’s payslip. No personal identity information is required, although a date of birth may be needed if it affects the calculation.
The information entered is not stored, and the taxman has no access to it.
Smartphone users can download the calculator as an app from the Apple and Android stores. It is a ‘welcome proactive use of technology by HMRC and a move towards greater transparency,’ claimed Katharine Arthur, tax partner at MHA MacIntyre Hudson.
‘However, I would question whether it should have been a priority at the current time,’ she added. ‘While useful as a sense-check, [the calculator] is limited in scope. For peace of mind, taxpayers must check the detail of their affairs and not simply rely on this app.’
