Tax Freedom Day!
Yesterday was Tax Freedom Day (“TFD”)!
TFD is the day the average Briton has earned enough to pay his annual tax bill. In other words it is the day you stop earning to support the Government and start earning for yourself.
This year TFD (as calculated by the Adam Smith Institute) fell on 31 May, one day later than in 2014, being 150 days spent working in order to pay for Government spending. 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 TFD earning days can broadly be split as follows:
| Income tax | 38 | |
| National Insurance | 26 | |
| VAT | 26 | |
| Excise duties | 16 | |
| Corporation tax | 9 | |
| Council tax | 6 | |
| Business rates | 6 | |
| Stamp duty | 4 | |
| Capital Gains Tax | 1 | |
| Sundry other | 18 | |
| 150 |
If you would like to explore ways in which your personal freedom day might be brought closer to 1 January please contact our Tax Director, Jenny Marks, for a free initial meeting. In the meantime enjoy spending and earning your own money!
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