Taxpayers will for the first time receive their Annual Tax Summary, which will show how much tax the person has paid and to which government departments the money has gone.
HM Revenue & Customs will begin sending out the statements tomorrow to 24m taxpayers, who will be shown that a quarter of their money is spent on welfare payments.
The statement will contain a pie chart like the example below detailing how the state has spent the money it has taken.
The measure was originally announced in the budget of 2012 and was intended to make taxpayers aware of how their money is being spent and to hold politicians accountable for their spending decisions.
Chancellor George Osborne said in statement:
I promised that taxpayers would know much more about how much direct tax they pay and how that money is spent.
Now we’re delivering on that promise by giving 24m taxpayers a new personal tax summary.
It is a revolution in transparency and it will show how hardworking taxpayers have to pay for what governments spend.