30 May 2011 - Tax Freedom Day

30 May 2011 - Tax Freedom Day

May 30th 2011 1:12 pm

general

According to the 'Adam Smith Institute', today 30th May 2011 is 'Tax Freedom Day' - This is the first day of this calendar ye ...

552 views

According to the 'Adam Smith Institute', today 30th May 2011 is 'Tax Freedom Day' - This is the first day of this calendar year that the average Briton stops working to pay taxes and actually starts earning money solely for themselves. All the money earned between the start of the year and May 29th, 149 days or 5 months, would be taken in taxes for the Government to support their spending. It's taken an extra 3 days this year, compared to 2010. The main reason for this being the deficit fighting 2.5 percent increase in VAT from the start of the year. If you were to break down these statistics regionally, Londoners take the longest (51 days) to pay off their taxes, whilst the Welsh spend the shortest time (35 days). So, with more money going to the Goverment what is the effect on the deficit and underlying national debts? Unfortunately, the average Briton would have to pay their entire pay packet, before taxes, from one year and a halfs work to settle the books. A lot of hard work still to be done. Commentators from the Adam Smith Institute note that with growth being as slow as revealed recently, a simpler, flatter tax system would benefit all, help growth and make the 'Tax Freedom Day' come earlier in future years. The Government has already signalled reforming the tax system, removing complexity and aims to merge income tax and national insurance over the coming tax years. Remember the way the 'Tax Freedom Day' is determined is by the amount of tax you have to pay on average - with 30 million taxpayers in the UK, it is important to make sure you are paying the correct amount of tax, reclaiming any expenses that are allowable and if you are self employed - weighing up the benefits of incorporating. Try our set of tax calculators at www.uktaxcalculators.co.uk, or start by using some of our tax widgets below!

be smart. find an accountant online now. it's easy!

what type of accounting work do you need help with? choose below.

Disclaimer

We are a lead generation facility for accountants located across the UK. We provide our visitors with the ability to search for accountants directly or provide details of the work they require and seek out accountants looking for clients with similar circumstances. Users of this website are assured that their personal details are not distributed to more than one accountant and that accountant is then allowed to contact the user to discuss the service the accountant can provide. All data transmission on this website and administration facility is carried out under full 256-bit SSL encryption.

Data Protection Registration Number ZA200013

Please read our full disclaimer.