Tax

Majority of the UK does not understand personal tax, says Deloitte

People in the UK do not understand personal tax affairs, with young people the least knowledgeable, according to new research by Deloitte.

Over 2,000 people across the UK were asked a series of tax questions and awarded a knowledge score based on their correct responses. The results revealed that the average person in the UK scored only 10.6 out of a possible 30, while almost half of people scored 10 or less.

According to the ‘Big Four’ accountancy firm, age had a “significant” impact on performance, with 18-24-year-olds achieving the lowest average score of 6.9. Results steadily increased with age, with over 55s achieving the highest average score of 12.3.

The majority of people surveyed (78%) said that in general, people do not know enough about tax. Meanwhile, 76% said that there should be more tax education in schools.

Matt Ellis, managing partner for tax and legal at Deloitte, said: “There is a clear gap in people’s knowledge of everyday tax issues. It’s important that people – especially younger generations entering the workplace for the first time – understand what is deducted from their pay slip and why.

“Education is essential, and our research shows there is both reason and appetite for this to begin at school.”

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