Tax Freedom Falls on May 31st in the UK
June 1, 2015 Taxation in UK
LONDON – Taxpayers in the UK need to work everyday for the first 150 days of the year just to pay off their annual tax obligations.
On May 31st the Adam Smith institute issued a new statement confirming that in 2015 the Tax freedom Day in the UK will fell on May 31st.
According to the Institute, the average UK taxpayer would need to spend the first 150 days of the year in order to raise enough money to pay off their tax obligations for the year.
In 2015 Tax Freedom Day fell one day later than in 2014, but a whole month later than the tax Freedom Day in the USA, where the date is April 24th.
The calculation of Tax Freedom Day takes into account direct taxes such as income tax, corporate income tax, national insurance contributions, and indirect taxes such as VAT and excise duties.
The inclusion of a significant number of taxes is intended to demonstrated the burden caused by so-called “stealth taxes”.
It was noted that the calculation does not take into account the debts taken on by the government, a financial cost that will inevitably be deferred to future taxpayers, and result in the slow slide of the date of Tax Freedom Day further into the year.
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