Tax Literacy – Communications Best Practice Guide
A guide to improving communications on tax and tax policy. It sets out a systematic approach to designing, implementing and evaluating tax communications.
2. Why are we doing it?
We know that public understanding of tax is fairly low. In 2024, our annual survey by YouGov showed that only 42% of people felt they understand the devolved tax system fairly well or very well. We also know that it’s not a Scotland specific issue. For example, in their 2024 report to Congress, the US Inland Revenue Service (IRS) Taxpayer Advocate flagged Tax Literacy as one of the most serious issues affecting US taxpayers[1]. It’s important that tax communications to reach as diverse an audience as possible, including people with protected characteristics under the Equality Act (2010) and those experiencing socio-economic disadvantage.
|
Answer |
2020 |
2021 |
2022 |
2023 |
2024 |
|---|---|---|---|---|---|
|
Understand them very well |
7% |
7% |
9% |
7% |
7% |
|
Understand them fairly well |
37% |
32% |
36% |
33% |
35% |
|
Total Understand |
44% |
39% |
45% |
40% |
42% |
|
Do not understand them that well |
33% |
35% |
29% |
34% |
33% |
|
Do not understand them at all |
17% |
18% |
19% |
20% |
20% |
|
Total Do Not Understand |
50% |
53% |
48% |
54% |
53% |
|
Don’t know |
6% |
8% |
7% |
7% |
6% |
As we set out in in the Scotland's Tax Strategy: Building on our Tax Principles, the Scottish Government aims to improve people’s understanding of the tax system. People should have have the best information when they are making decisions which impact their financial wellbeing. For example, there is anecdotal evidence[2] that some people may choose to not take a better paying job or promotion because they think they will be taxed at a higher rate on the full amount they earn, making them worse off. In cases like this, a better understanding of how income tax works may lead to people moving to better paid work for them and their households.
Finally, we think it’s important that people are more engaged in discussions around tax policy. The tax landscape in Scotland is complex, but people should understand how and why tax policy decisions are made so they can more actively contribute to tax policy development.