Tax Freedom Day, on which the average worker in the UK finishes paying their combined annual tax payment to Government and starts earning money for themselves, is only nine days away.
The date is calculated by matching the average employee’s total tax contributions for the year, including National Insurance, VAT, income tax and fuel duty figures, with the average annual salary.
Tax Freedom Day 2012 will fall on Wednesday, May 30, according to the Adam Smith Institute. Having seen every penny earned on the subsequent 149 days of the year go directly to the taxman, from this day forth the average UK worker is now finally free to earn money for themselves.
David Brunning, Director of Brunning Newman Houghton, based in Tunbridge Wells, said: “The overwhelming burden of Government spending and regulation and its effect on the average worker is not widely understood. Tax Freedom Day shows in simple, stark terms exactly how much time we spend working for the Government before we get any money ourselves – five months plus.
“When you consider how long it takes to create money you can keep, it reinforces the need to save wisely and minimise your liability to tax with independent financial advice.”
Tax Freedom Day has become later in recent years, slipping from May 14 in 2009 to May 27 in 2010 and May 30 last year.
Figures show Americans enjoyed tax freedom on April 12 this year, three days later than the previous year. The UK’s Tax Freedom Day fares favourably against those enjoyed by our European neighbours. In 2010, the Germans celebrated their freedom on July 19, the French celebrated a week after that and the Hungarians had to wait until August 6.