UK Workers Need 149 Days to Cover Their Taxes

May 31, 2011 Taxation in UK

UK Workers Need 149 Days to Cover Their TaxesUK taxpayers have spent the almost six months paying off their tax obligations, and can now begin earning for themselves.

According to research carried out by the UK think-tank the Adam Smith Institute, the Tax Freedom Day fell on May 30th in the UK in 2011. According to data published by the Institute, in 2011 UK taxpayers needed 149 days to pay their overall tax liabilities in full. This year’s date is three days later than in 2010, with the change being attributed to the government’s recent increase to the rate of the national Value Added Tax (VAT).

Britons need to work approximately 39 days per year to pay their personal income tax, an additional 26 days for their National Insurance Contribution, an extra 29 days for their annual average Value Added Tax liabilities, a further 12 days for the national corporate income tax obligation, 13 days more for local council taxes, 7 days for fuel duties, 2 days for capital gains and inheritance taxes, 5 days for alcohol and tobacco duties, and 17 days for all other local and government taxes. The Tax Freedom Day calculation does not take into account the size of the government’s current debts, with economists from the Institute saying that all of the UK’s taxpayers would need a total 525 days to pay off the government debt levels.

Tax Freedom Day is a hypothetical measure quantifying the size of the tax liabilities faced by taxpayers, the date corresponds to how long an average employed individual would have to work in a given year to pay off their annual tax obligations.

Photo by bcymet