You are here: Home - Household Bills - News -

Tax Freedom Day: Brits work 154 days of the year just to pay taxes

0
Written by:
03/06/2016
Tax Freedom Day – the day UK taxpayers stop paying government taxes and start earning money for themselves – falls today, four days later than in 2015.

According to calculations by economic think tank the Adam Smith Institute (ASI), Brits have worked 154 days of the year solely to pay taxes – that’s every day from 1 January to 2 June.

It is the first time in 15 years Tax Freedom Day has crept into June.

The think tank said while net national income has increased by £34.6bn from 2015, government has “gobbled up” £35.4bn more in taxes, meaning Britons are £1bn worse off than last year.

The ASI is calling on the government to alleviate the pressure on the lowest earners in society and raise the threshold of National Insurance Contributions from £8,060 up to £11,000, the same level as income tax.

It said both should then be pegged to the annual salary of a full-time minimum wage worker, so low earners pay no tax on their earnings.

Director of the ASI, Dr Eamonn Butler, said:“ The Treasury hates Tax Freedom Day because they don’t want us to know how much tax we really pay. They conceal the tax burden with stealth taxes that we don’t even realise we’re paying.

“But it’s shocking that the government takes over two-fifths of the country’s earnings – and then borrows more. We work longer for the government than mediaeval serfs had to work for their Lords!”

ASI calculations include direct taxes like income tax and national insurance, as well as indirect taxes like VAT and corporation tax.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Fund manager view: Why tobacco stocks may now need a health warning

Axa's planned removal of its exposure to tobacco stocks could put pressure on the share prices of the largest firms...

Close