Tax Freedom Days Arrives in the UK

May 31, 2013 Taxation in UK

Tax BillLONDON – For the first time this year UK taxpayers are earning for themselves, and are not putting all of their hard earned cash into paying off their taxes.

Tax Freedom Day in the UK fell yesterday, on May 30th, 150 days since the start of the year, and one day longer than in the previous year.

Tax Freedom Day is a hypothetical measure of the average tax liabilities faced by taxpayers in a country, and is provides an indication of how many days the average taxpayers would need to work before they have met their cumulative tax obligations for the year.

The calculation of Tax Freedom day for the UK was completed by the Adam Smith Institute, an independent UK based think tank.

Explaining the benefit of using Tax freedom day as a measure of tax liabilities, the Director of the Adam Smith Institute Eamonn Butler said that Tax Freedom day is “…is the plainest way to show what the tax burden really is… that is why the Treasury hates it… we put in every tax, including stealth taxes – income tax, national insurance, council tax, excise duties, air passenger taxes, fuel and vehicle taxes and all the rest – and show just how long the average person has to work to pay their share of them all.”

Comparative the Tax freedom Day in the USA falls on April 18th, approximately 42 days earlier.

Photo by Images_of_Money