Online application, which will also be shown on HRMC website, will tell taxpayers how much they pay and what it is spent on
The Treasury is launching a tax calculator app on Monday that will allow people to find out how much they are paying individually in tax and where the money goes.
The calculator, which will also be available on the HM Revenue and Customs website, has been developed as part of a process that will see the government sending all taxpayers a precise statement about how much tax they have contributed to different government departments from 2014-15.
David Gauke, a Treasury minister, said it was right to tell people how much money they paid and how it was spent.
Referring to research showing that 57% of people do not know how much they pay in income tax and national insurance, he said: “Our new tax calculator will allow them to find out, which is a big step towards a more transparent, 21st-century system.”
The app invites users to fill in their gross pay and then calculates income tax paid, national insurance tax paid, total tax paid and where that money has gone, based on how government tax revenue is allocated.
Some Tories believe that personalising these figures, and encouraging people to become aware of them, will strengthen public support for spending cuts.
The calculator says that someone with gross pay of £25,000 will pay £5,465.24 in income tax and national insurance. It then identifies how that sum is divided among 14 categories, of which the one taking the largest chunk – 33.3%, or £1,819.92 – is welfare.
The calculator does not include indirect taxes, such as VAT, and the way spending has been described may generate controversy. For example, many people may associate welfare with benefits to the unemployed, while by far the biggest single item in the welfare budget is the state pension.
The app is available from the Apple Store, Google Play and the HM Revenue and Customs website.