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