Today is Tax Freedom Day 2013; the notional point in the year when workers have paid all of their taxes and earnings start going into their own pockets.
30th May 2013 is one day later than in 2012, and the latest tax freedom day since 2006.
The date for tax freedom day is calculated by taking to the total income tax and national insurance contribution bill for the UK as a proportion of net national income.
This calculation results in a figure of 41.5% for 2013, or 150 days as a share of the 365 day calendar.
By calculating tax freedom day in this way, we can see that the UK is better off than France (July) but worse off than the US (mid-April).
Of course this tax freedom day calculation is simply an average. Your own personal tax freedom day is likely to come later or earlier than 30th May.
It’s possible to make tax freedom day arrive earlier, so that more of the year is spent earning money for you and your family, with sensible Financial Planning.
Making use of available tax allowances and reliefs is usually the lowest cost form of Financial Planning and can result in significant savings each year.
