Money (9)

Today (Friday 3 June) marks Tax Freedom Day, the day when workers have effectively earned enough money to pay their taxes for the year.

According to the Adam Smith Institute, Tax Freedom Day falls four days later than in 2015, suggesting that the government's plans to cut the tax burden is not working. It is also the first time the day has landed in June for 15 years.

The think tank estimates around 42% of national income will come from tax receipts this year.

Eamonn Butler, director at the Adam Smith Institute, 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.

"It is absurd that people on the minimum wage are liable for National Insurance Contributions, which raise their cost to employers and make it harder to move from benefits into work."

ICAEW technical lead & senior policy adviser, Anita Monteith, said: "This year, UK residents will work 154 days of the year solely to pay their taxes. So, from 1 January until 2 June you are working to fund public finances. This is 4 days more than in 2015, which is bad news for taxpayers amidst a sluggish UK economy and ongoing uncertainty surrounding the EU Referendum.

"It does, however, illustrate the scale of the tax burden on businesses and individuals, which is something that needs to be addressed by Government. In order to enjoy greater economic growth and prosperity, it’s imperative that politicians seek to identify new and innovative ways of giving value back to taxpayers as opposed to taking it.”