It won't surprise you to learn that tax in the UK is pretty complex. It's very hard to calculate exactly how much tax an individual pays, including all indirect taxes such as VAT and alcohol duty - we certainly don't claim that our figures are perfectly accurate.
However, unlike most 'tax calculators', which only include direct taxes such as income tax and National Insurance, we did want to calculate the effects of indirect taxes. So we used high-level figures for the total tax, direct and indirect, paid by households in each income decile (Table 14 in
this National Statistics report).
When you enter your income, we use
linear interpolation to calculate whereabouts you are on the distribution of income deciles, and thus roughly how much tax you pay in total.