A new report reveals that a family of four could pay as much as £253 in ‘holiday tax’ before they even board a plane.
The TaxPayers’ Alliance (TPA) study outlines how we're taxed on everything from airline tickets to travel insurance – and even that new holiday wardrobe.
Figures show that taxes make up a significant proportion of the cost of holidays, with the relative cost of ticket taxes in the UK being the highest in the developed world.
The overall 2016 tax bill for holidays abroad will be more than £2.4 billion, the TPA claimed.
That’s an increase of more than £900 million since 2008 as a result of rises in VAT, Air Passenger Duty and Insurance Premium Tax.
This means that the average UK holidaymaker will pay £61.12 in holiday taxes, with a family of four holidaying in Spain paying £133.20 and the same family of four holidaying in Florida paying £253.20 in holiday taxes.
Numbers are based on the ONS Travel Trends 2015 report.
|
Item |
Tax charged (£) |
Number of travellers |
Tax per person (£) |
|
Total APD charged on holiday flights |
511,636,107 |
32,761,417 |
15.62 |
|
VAT on pre-holiday shopping |
1,844,263,409 |
42,150,0001 |
43.75 |
|
Holiday Insurance Premium Tax |
73,762,500 |
42,150,000 |
1.75 |
|
Total holiday taxes |
2,429,662,016 |
117,061,417 |
61.12 |
The report comes shortly after an announcement from the Scottish Government promising to reduce Air Passenger Duty between 2018 and 2021.
Pre-holiday shopping
A large amount of tax is from the shopping we do before departure, according to the report.
The TaxPayers’ Alliance figures are based on a basket of goods likely to be purchased before departure, with things like toothpaste, sunglasses and a swimsuit.
|
Item |
Adults |
Children |
||
|
|
Price (£) |
VAT (£) |
Price (£) |
VAT (£) |
|
Sun cream |
8.00 |
1.60 |
8.00 |
1.60 |
|
Sunglasses |
20.00 |
4.00 |
0.00 |
0.00 |
|
Summer dress |
30.00 |
6.00 |
0.00 |
0.00 |
|
Sarong |
10.00 |
2.00 |
0.00 |
0.00 |
|
Razors |
10.50 |
2.10 |
0.00 |
0.00 |
|
Shaving foam |
3.50 |
0.70 |
0.00 |
0.00 |
|
Toothpaste |
2.50 |
0.50 |
1.25 |
0.25 |
|
Aftershave/perfume |
40.00 |
8.00 |
0.00 |
0.00 |
|
Haircut |
24.00 |
4.80 |
12.00 |
2.40 |
|
Deodorant |
2.75 |
0.55 |
0.00 |
0.00 |
|
Session on a sun bed |
7.00 |
1.40 |
0.00 |
0.00 |
|
Pairs of shorts |
20.00 |
4.00 |
8.00 |
0.00 |
|
2 t-shirts |
24.00 |
4.80 |
10.00 |
0.00 |
|
Swimming costume |
15.00 |
3.00 |
8.00 |
0.00 |
|
Pair of flip flops |
12.00 |
2.40 |
5.00 |
0.00 |
|
Per person (£) |
45.85 |
45.85 |
52.25 |
4.25 |
|
Number of holiday makers |
40,027,065 |
1,835,240,936 |
2,122,935 |
9,022,473 |
|
Total VAT bill |
|
|
|
1,844,263,409 |
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Is this what your pre-holiday basket looks like? Let us know in the comments below