Think tank the Adam Smith Institute is forecast to call the day as 12 June, representing the day on which an average worker would start earning money for themselves if they allocated all of their income to paying tax first.
The June date is the latest that the day has ever fallen, having previously reached this peak in 1983 at the height of Margaret Thatcher’s efforts to balance the books. Last year, it was 8 June.
Financial experts say the day is expected to keep moving later and later thanks to cuts in allowances such as the dividend tax allowance, and frozen tax thresholds creating fiscal drag.
Sarah Coles, personal finance expert at DIY investment group Hargreaves Lansdown, said: “We spend the best part of six months working for the taxman, and it’s only going to get worse.
“Real pain has come from a horrible stealth tax – the freeze in income tax thresholds, which has pushed millions more people into paying tax – and millions into paying tax at higher levels.”
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In 2024/25, there were 37.7 million taxpayers, and we handed over an eye-watering £301.9bn in income tax – up 10% in a year and up 37% since 2021/22.
Shift over time
Some 50 years ago, Britons reached Tax Freedom Day in April, and in 1966, it was still on 2 May.
The date moved much later under Labour, led by Harold Wilson, and was at 26 May in 1970. While it last hit 12 June under Margaret Thatcher, she then moved it back over the rest of her time as Prime Minister to earlier in May.
Make your own tax freedom come earlier
Coles said those who want their own Tax Freedom Day to come earlier can ensure that they use ISAs to protect themselves from capital gains tax, dividend tax and tax on cash interest.
They can also take action such as putting money into a pension and claiming tax relief, transferring assets between spouses and civil partners and using other forms of tax relief.
If your employer runs a salary sacrifice scheme, you can give up a slice of your salary and take the difference in pension contributions – so you don’t pay tax or National Insurance on this portion of your income. It is rumoured that the Chancellor may put a stop to these soon, so getting in as soon as possible with this is advisable.
“We need to take steps to protect ourselves from paying over the odds, so we bring our own personal Tax Freedom Day forward as far as we can,” Coles added.
