Average household will pay £1million in tax in their lifetime, says research

Analysis from the TaxPayers' Alliance (TPA) of ONS data suggests the average household will pay over £1million in tax.

Average households set to pay almost £180,000 in employer and employee national insurance contributions before the planned rise, according to the research.

The TPA have calculated that the average taxpayer will have to work 18 years in order to pay off the taxman.

Even before the planned rise in national insurance contributions and council tax, the average family would pay almost £180,000 and £80,000 respectively in their lifetime.

This is alongside nearly £480,000 in income tax and £190,000 in VAT.

Previous TPA research found the proposed health and social care levy would increase the average worker’s NIC contribution by over £430 every year.

Meanwhile the poorest households, families with a household income of £19,171, will work for almost 24 years to pay off their tax bill, the longest of any group.

The lifetime tax bill for the top 20 per cent of households, or families with an income of £137,669, would be £2,573,815 in direct and indirect taxes, which would take them 19 years to pay off.

Lifetime tax has doubled since 1977 according to the data, only falling on four occasions in that time.