The Adam Smith Institute's Tax Freedom Day calculations feature in two City AM articles:
THE AVERAGE worker has spent the entire year until yesterday working for the government, and only now will earn for themselves, according to a study from the Adam Smith Institute.
Its Tax Freedom Day report studies the government’s overall tax take, including charges on spending as well as income, and uses the calendar year to illustrate how much revenue the Treasury takes each year.
The average British citizen works for 150 days of the year solely to pay their taxes, according to the Adam Smith Institute, organisers of Tax Freedom Day.
The UK's Tax Freedom Day fell on 31 May this year, one day later than it did in 2014. It is calculated by the Adam Smith Institute, and marks how many days of the year British residents would need to work just to pay their taxes.
It is based on the money raised by HM Revenue and Customs - including direct taxes like income tax and national insurance, as well as indirect taxes such as VAT and excise duties.
The ASI calculates Tax Freedom Day by measuring local taxes, direct and indirect national taxes, and national insurance contributions as a proportion of the UK’s net national income (41.2% per cent in 2015), mapping that proportion onto the days of the year.
Tax Freedom Day figures are not available up-to-date for calendar years so they are proxied from government and OBR forecasts and financial year numbers. They are then revised when exact numbers become available.
Click here for more information on previous Tax Freedom Days and Cost of Government Days.