How Much Tax Do We Really Pay in the UK? When people talk about tax, they usually mean income tax. But that’s only part of the story. Before you even get paid: • Income tax National Insurance • For many workers, that’s 30–40p in every £1 earned After you’re paid: • Households spend around 60–65% of income • Much of that attracts 20% VAT VAT alone often works out to: 👉 8–10p of every £1 you earn Then add: • Fuel duty VAT • Insurance premium tax • Alcohol, tobacco, air passenger duty None of thes